The Energy Department will release additional oil from U.S. stocks ahead of the European Union's plans to ban most Russian oil in December, Bloombegr writes.

The Energy Department will offer to release 10 million barrels of low-sulfur oil for delivery in November from storage facilities in Texas and Louisiana. Bids for delivery must be submitted by Sept. 27.

The government's offer comes at a time when global benchmark oil prices have fallen to levels seen before the war in Ukraine, as investors heed warnings of a global recession. Falling oil futures have caused U.S. gasoline prices to fall for weeks, a welcome development for the Biden administration as it prepares for the midterm elections in November.

The moment is also noteworthy because it coincides with discussions by the Organization of Petroleum Exporting Countries to limit production. OPEC and its allies have agreed to cut production next month by 100,000 barrels a day.

The planned output of 180 million barrels was originally set for a six-month period that began in May. To date, SPR sales have resulted in the delivery or delivery of 155 million barrels of crude oil through Oct. 22. Of the 10 million barrels scheduled for delivery in November, 1 million are destined for eventual export.