In a move to bolster the nation's emergency stockpile, the Biden administration has announced plans to buy 2.7 million barrels of oil at an average price of $79 per barrel, according to a statement from the Department of Energy on Friday.

Last year, President Biden sold off over 40% of the Strategic Petroleum Reserve in an effort to drive down gas prices following the Russian invasion of Ukraine. The reserve was tapped four times in total, with a record-setting release of 180 million barrels of oil. However, these withdrawals led to the stockpile reaching its lowest level since the 1980s, drawing criticism from Republicans who accused the administration of leaving the U.S. vulnerable to energy threats.

Prior to the planned purchase, the Strategic Petroleum Reserve held 351 million barrels, nearing the lowest level since 1984. This marked a significant drop from the 630 million barrels it contained at the start of 2020.

Established in response to the 1973-74 oil embargo led by Arab members of OPEC, the reserve has been utilized in various emergencies, including after Hurricane Katrina in 2005 when the Bush administration authorized the release of 20.8 million barrels of crude oil.

Advocates argue that releasing emergency supplies can increase oil availability and drive down prices at the pump, while also generating substantial revenue for the federal government. However, critics contend that such actions provide only short-term relief and do not address the country's overall oil production.

Earlier this year, the White House announced a plan to replenish the emergency stockpile by calling for bids to repurchase 60 million barrels of oil, approximately one-third of the supply released in 2022.

Despite fresh OPEC+ production cuts, the U.S. benchmark West Texas Intermediate was trading around $75.90 per barrel on Friday, a significant drop compared to its peak of $120 per barrel in May 2022. This price, however, represents a notable increase from early 2020 when oil prices languished below $20 per barrel. Notably, former President Donald Trump's attempt to add 77 million barrels to the emergency oil reserve was blocked by congressional Democrats at the time.

In the meantime, Brent crude was trading at approximately $80 per barrel, highlighting the volatility and global factors influencing oil prices in the market.

The Biden administration's purchase of 2.7 million barrels of oil aims to replenish the much-depleted emergency stockpile, ensuring a vital safeguard against potential disruptions in oil supply and energy security.