Seems a little contradictory to try to mitigate inflation by releasing oil from the reserve while signing, and hoping to sign, trillions of dollars in stimulative new spending that will spur inflation.
According to the Wall Street Journal:
The U.S. and several other countries will tap their national strategic petroleum reserves, senior Biden administration officials said Tuesday, in an attempt to bring down gasoline prices that have become a big contributor to inflation.
Other countries participating in the release include China, India, Japan, South Korea and the U.K., the White House said. The U.S. will release 50 million barrels, officials said.
“The president stands ready to take additional action, if needed, and is prepared to use his full authorities working in coordination with the rest of the world to maintain adequate supply as we exit the pandemic,” the White House said in a statement.
Officials didn’t specify when they expect consumers to see lower prices at the pump, though they noted there is usually a lag between increased oil supplies and when retail prices fall. “We expect the industry to be passing through these savings to consumers as quickly as possible,” an official said.
Global benchmark Brent crude added 0.2%, trading at $79.91 Tuesday morning after the announcement.