U.S. sending oil reserves overseas in ‘shocking’ move

U.S.

(NewsNation) — Stunning data was reported by Reuters on Tuesday, showing the United States government made a rare move to send its strategic oil reserves, more than 5 million barrels of it, overseas to Europe and Asia.

The move to send 5 million barrels of U.S. oil overseas comes as gas prices in the United States hit a record high, something the Biden administration has vowed to combat.

On Wednesday however, a White House spokesperson said they were not aware of the Reuters report when pressed about why the U.S. was exporting so much of its oil.

“It’s really shocking,” said NewsNation business contributor Lydia Moynihan. “To put this in context, these strategic reserves are used basically for emergencies only. During the Gulf War, when we invaded the Middle East, when we were worried about our oil supply, we took out just 17 (million) barrels. During Hurricane Katrina when the (Gulf of Mexico) was hit, we worried about our oil supply, we took out just 20.”

Some economists are predicting gas prices could drop in the United States soon, as fears of a recession linger. Moynihan said that could end up being true, but only if demand for gas drops and supply stays the same.

Moynihan’s full interview can be viewed in the video above.

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