(Reuters) – On Thursday, oil futures plunged to more than $5 a bar on the news that Biden’s administration may release 1,000,000 barrels per day of strategic reserves oil for several months. The move is intended to reduce rising crude prices.

Futures declined 4.2% to $108.58/barrel and U.S. West Texas Intermediate futures decreased $5.45 (or 5%) to $102.74/barrel at 0035 GMT.

Later on Thursday, the Biden administration is scheduled to make remarks. He will announce the plan which aims at decreasing gasoline prices. These record-breaking levels were set by Russia after its invasion of Ukraine. On Wednesday, prices rose by around 3% due to supply worries as the Ukraine and Russia peace talks appeared to be stalled.

Stephen Innes (Managing Partner, SPI Asset Management) stated, “It is a sentiment shock. But if recent history suggests otherwise, the reserve release won’t be a temporary fix. Akin to putting an band-aid on broken legs.”

The Biden administration announced in March that it will release 30,000,000 barrels from strategic reserves. This is part of an international release of 60,000,000 barrels to reduce prices.

It comes after U.S. oil stock fell by 3.4million barrels over the week of March 25, exceeding forecasts of a one million barrel drop. But, there was also a decline in implied demand for gasoline or distillates.

After stagnating at 11.6million bpd in February, the U.S. produced increased by 100,000 barrels daily to 11.7million bpd.