Biden to speak Thursday on U.S. plans to lower gas prices

© Reuters. A U.S. postal worker puts his seatbelt on after filing up his vehicle at a gas station in Garden Grove, California, U.S., March 29, 2022. REUTERS/Mike Blake

WASHINGTON (Reuters) -President Joe Biden's administration is considering releasing 1 million barrels of oil a day for several months from the Strategic Petroleum Reserve (SPR) to reduce gasoline prices, two senior U.S. officials said.

Biden will give remarks on Thursday on his administration's actions, the White House said, as Russia's invasion of Ukraine and sanctions on Moscow have driven up the price of oil.

High gasoline prices have become a political liability for Biden and his Democratic Party as they seek to retain control of Congress in November elections.

The White House said Biden will deliver remarks at 1:30 p.m. ET (1730 GMT) on "his administration’s actions to reduce the impact of Putin's price hike on energy prices and lower gas prices at the pump for American families." It did not give additional details.

The Biden administration is considering another release of oil from the SPR to help stabilize global energy markets that, if carried out, could be bigger than the sale of 30 million barrels earlier this month, a U.S. source said on Friday.

International Energy Agency member states agreed to release over 60 million barrels of oil reserves earlier in March, with 30 million barrels coming from the U.S. SPR.

The Biden administration is considering temporarily removing restrictions on summer sales of higher-ethanol gasoline blends as a way to lower fuel costs for U.S. consumers, three sources familiar with the matter told Reuters.

Adding more ethanol to gasoline blends could potentially reduce prices at U.S. gas pumps because ethanol, which is made from corn, is currently cheaper than straight gasoline.

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