U.S. To Release 50 Million Barrels Of Oil

President Joe Biden ordered 50 million barrels of oil to be released in an effort to cut energy costs on Tuesday (November 23, the Associated Press reports.

The move is aimed to help Americans dealing with higher inflation and rising prices leading up to holiday travel, as well as help energy markets recover after demand collapsed and oil prices turned negative amid the ongoing COVID-19 pandemic.

Gas prices are currently at about $3.40 per gallon, which is a more than 50% increase from the previous year, the American Automobile Association reports via the Associated Press.

Prices have gone up and down throughout the month of November, as they're currently up less than 1% this week with many traveling for Thanksgiving.

The Associated Press reports there were no immediate changes to the price for a benchmark barrel of U.S. cruse oil after President Biden's announcement Tuesday morning.

The administration has focused on reshaping parts of President Biden's economic agenda to target the issue of inflation following the recently passed a $1 trillion infrastructure package aiming to make transporting goods cheaper and more efficient to reduce price pressures.

Energy markets were among numerous industries hit hard by the COVID-19 pandemic as demand halted and oil prices turned negative, while traders didn't want to be stuck with crude oil that they were incapable of storing.

Prices on oil eventually jumped to a seven-year high in October as the economy recovered, though production has not, with the Energy Information Administration reporting domestic production is averaging about 11 million barrels per day, a decrease of 12.8 million prior to the COVID-19 pandemic.