Biden spurs record emergency oil release to offset losses from Russia

• President Joe Biden on Thursday launched the largest release ever from the U.S. emergency oil reserve to try to bring down gasoline prices that have soared during Russia's war with Ukraine. 
• Starting in May, the United States will release 1.0Mn barrels per day of crude oil for six months from the Strategic Petroleum Reserve, a senior administration official told reporters. The 180.0Mn barrels is equivalent to about two days of global demand, and marks the third time Washington has tapped the SPR in the past six months. 
• The release will more than cover oil exports to the United States from Russia, which typically produces about 10.0% of the world's crude, but only accounts for 8.0% of U.S. liquid fuel imports. Biden banned U.S. imports of Russian oil this month. 
• However, the release will fall short of a loss of about 3Mn bpd of Russian oil, which the International Energy Agency (IEA) estimates will be lost to global markets amid Western sanctions and as global buyers avoid the oil. In an effort to tackle soaring oil prices, IEA member countries are set to meet on Friday to discuss a further emergency oil release, following their March 1 agreement to release about 60Mn barrels. The oil release will serve as bridge until the end of the year when domestic production ramps up.

(Source: Reuters & NCBCM Research)