VIRGINIA BEACH, Va. - President Biden ordered the release of up to 1 million barrels of oil per day from the nation's strategic petroleum reserve in a bid to control energy prices.
The president said the move could mean a fairly significant drop at the gas pump, potentially up to 35 cents per gallon.
According to AAA, the national average for a gallon of gas has now fallen to $4.18
Biden's announcement came as OPEC and its allies announced they would maintain a plan to gradually ramp up production with 400,000 b/d monthly increases.
"The upward push on oil prices caused by Russia's war in Ukraine is meeting stronger downward pressure from the planned SPR oil release and increased COVID fears in China," said Holly Dalby, AAA Tidewater director of public affairs. "And lower global oil prices are reflected in falling pump prices for consumers in the U.S."
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased as gasoline demand decreased. According to AAA, the drop in gas demand, alongside growth in total stocks, contributes to price decreases. If demand continues to decline as gasoline stocks continue to build, the national average will likely continue to move lower.
As of Monday, the national average for a gallon of gas is $4.18, which is six cents less than a week ago, 35 cents more than a month ago, and $1.31 more than a year ago.
In Virginia, the average pump price decreased seven cents to $4.05. In Hampton Roads, prices decreased seven cents to $4.06, which is 35 cents higher than last month and $1.39 higher than a year ago, according to AAA.
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