How is the current price of oil per barrel actually determined?
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Former presidents have turned to the reserve amid supply disruptions spanning from geopolitical conflicts, adding more supply onto the market in the hope of pushing prices lower. President Joe Biden drew significantly from the reserve in 2022 following Russia’s invasion of Ukraine, dropping the stockpile to its lowest level since the 1980s. Back in 1991, President George H.W. Bush also authorized withdrawing nearly 34 million barrels during the Gulf War, although only 17 million barrels were used. And in 2011, President Barack Obama approved the release of 30 million barrels to offset the disruption of supply from Libya.
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