Dec 10 (Reuters) - The U.S. Department of Energy said on Friday it will sell 18 million barrels of crude oil from its strategic petroleum reserve $(SPR)$ on Dec. 17, as part of a previously announced plan to try to reduce oil prices.
The Biden Administration announced last month it would release about 50 million barrels from its reserves in conjunction with other countries to combat the rising cost of fuel.
The White House has been trying to deal with Americans' worries about high fuel costs, even though the president has few tools to deal with the price of crude, a global market influenced by numerous factors.
“The President rightly believes Americans deserve relief now and has authorized the use of the SPR to respond to market imbalances and reduce costs for consumers," said Energy Secretary Jennifer Granholm.
Oil prices rose to seven-year highs at more than $86 a barrel due to surging fuel demand worldwide, but have dropped by nearly 13% since late October, in part due to the U.S. announcement and the emergence of the Omicron variant of coronavirus that has dented travel around the world.
The Brent benchmark ended at $75.15 a barrel on Friday.
The 18 million barrels to be sold had already been approved by Congress in 2018. The remaining barrels will be issued in coming months through exchanges. The first exchange of 4.8 million barrels will be with Exxon Mobil Corp , the largest U.S. oil company.
U.S. retail gas prices are currently averaging $3.33 a gallon, the lowest since mid-October, according to the American Automobile Association. Prices peaked at $3.42 a gallon early in November.
The United States holds roughly 600 million barrels of crude oil in giant caverns in Texas and Louisiana. Its current inventory is at its lowest since 2003.
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