US and allies agree to release 60 million barrels of oil from their reserves as Russian invasion of
Ukraine causes price spike
The US and its allies have agreed to a release of 60 million barrels from their reserves, according to two sources familiar with the decision, as leaders seek to dampen the effect of Russia's invasion of Ukraine on gas prices at home.
Half of that total -- 30 million barrels -- will come from the US Strategic Petroleum Reserve, and the other half will come from allies in Europe and Asia. Those other allies include Germany, the United Kingdom, Italy, the Netherlands and other major European countries, as well as Japan and South Korea.
The invasion of Ukraine has driven concerns about a supply disruption from Russia, the world's No. 2 oil producer. Brent oil prices closed above $100 a barrel on Monday for the first time since 2014. US crude and Brent jumped another 5% on Tuesday even as the International Energy Agency meets to discuss a response to the Russia-Ukraine crisis.
High oil prices have lifted prices at the gas pump to seven-year highs. The national average for regular gasoline rose to $3.62 on Tuesday, up about 9 cents in a week and 24 cents in a month, according to AAA. At some point, energy prices could get so expensive that it erodes demand from consumers and slows the broader economy.
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