by pinecarr
From ZH, “Here’s Why Biden Was Forced To Beg Xi To Release Oil From China’s SPR”
As we have detailed in depth over the past few days (here, here, and here), the Biden administration is utterly desperate to stop retail gasoline prices soaring as the president’s approval rating plunges ever lower.
So desperate that last night we reported that Biden had reportedly asked President Xi to release some of China’s Strategic Petroleum Reserve (which we remarked and JPMorgan has confirmed was “highly unlikely” to happen).
The decision to ask China to join a coordinated global SPR release seemed odd at the time of reporting… but now we may know why Biden was forced to do it.
It turns out that the US SPR has seen drawdowns for 10 straight weeks, during which more than 15 million barrels of crude have been withdrawn.
At 606 million barrels, SPR is at its lowest since 2003, and it seems more declines are on the horizon.
As Bloomberg’s Julian Lee points out, the withdrawal of 3.25 million barrels from the SPR is the biggest in more than a decade.
Reference: www.zerohedge.com/energy/heres-why-biden-was-forced-beg-xi-release-oil-chinas-spr