President Biden said he and his administration would be selling an additional 20 Million barrels of oil from the SPR as part of previous plans to tap the facility in hopes that it will calm the surging oil prices. In late March, the Biden administration said they would release 1 Million barrels per day of oil for at least six months.

125 Million barrels of oil have already been sold from the reserve with nearly 70 Million barrels already delivered to purchasers. The SPR releases have been a lifeline to oil and refining companies as the industry continues to get oil production back online after declines during Covid.

The United States Energy Information Administration said this month that United States oil output will rise by nearly 11.9 Million barrels per day in 2022 and to nearly 12.8 Million barrels per day in 2023, from 11.2 Million barrels per day in 2021. The United States will take bids in autumn to begin the process of buying back 60 Million barrels of crude for reserve.

The department will soon propose a rule to help put oil back into the SPR where levels have sunk to the lowest since June 1985.

"What it means in practice is that producers would have more certainty about future demand for their product, and that would encourage investment in production today."

United States officials have told reporters.

To replenish the SPR will take oil purchasing until after the fiscal year of 2023. The United States Treasury Department analysis showed that the SPR releases, along with coordinated releases from international partners, have shed the gas prices by as much as $0.40.