By Timothy Gardner

NEW YORK, (Reuters) – President Joe Biden will on Thursday announce that a million barrels per day from the U.S. Strategic Petroleum Reserve for six months to cool oil prices. This is the biggest such release from the stockpile of its kind in recent history.

This is because of the fact that oil prices have risen since Moscow invaded Ukraine on February 24th and subsequent sanctions placed on Russia by the United States (and its allies) on March 25th.

With the latest U.S. crude oil releases, there will be 180 million barrels available. This is the equivalent of about two days global demand.

The International Energy Agency is the global energy watchdog, of which the United States are a member. It may release barrels at Friday’s meeting of the IEA members.

The 31-member IEA, representing industrialized nations but not Russia, presided over the fourth coordinated oil release in its history on March 1 of over 60 million barrels of crude – its largest yet.

In March’s IEA publication, the United States pledged to produce 30 million barrels (SPR) oil.

Washington had previously pledged to make 50 million barrels SPR oil available by November, but China’s expected response was not forthcoming. As a result, prices soared with the demand recovery from COVID-19.

WHY IS THE SPR CREATED?

After the 1975 Arab oilembargo, the United States established the SPR. This was to help calm the oil market and protect the U.S.Gulf of Mexico.

HOW MUCH OIL HOLDS THE PR?

The current reserve holds approximately 586 million barrels, in dozens of underground caverns located in four highly guarded areas on the Texas and Louisiana coasts. A small amount of gasoline is also held in the U.S. Northeast.

WHAT HELP DOES THE SPR NEED TO BRING OIL TO MARKET

Due to its central location, the SPR can transport up to 4.4 Million barrels per day. According to the Energy Department, it can take just 13 days for oil to reach the U.S. markets after a president has made a decision.

The Energy Department often holds an internet auction where energy companies can offer their oil. Swaps are where oil companies accept crude but must return it plus interest.

In the six previous months, three U.S. presidents authorized emergency sales through the SPR. The most recent was in 2011, during a war with Libyan OPEC members. The Gulf War, 1991, and the 2005 Hurricane Katrina were also times when sales took place.

There have been more oil swaps, with the latest exchange taking place in September after Hurricane Ida.

WHAT ARE OTHER COUNTRIES THAT HAVE STRATEGIC RESOURCES?

The United States holds approximately half of all the strategic oil reserves in the world.

The United States of America and other IEA members countries, including Australia, Germany, Japan, Japan, and Japan, must have enough oil to meet their 90-day net oil imports. Japan is home to the world’s largest oil reserves, surpassing China and the United States.

China, an associate member of the IEA and the world’ssecond-leading oil consumer, created its SPR 15 years ago andheld its first oil reserve auction in September. India is another IEA member and third largest oil importer.

According to the IEA, the total state storage in the Organisation for Economic Cooperation and Development (most of whose members are IEA) was close to 1.2 billion barrels crude oil as of January.