Historic Moment: Biden Drains US Strategic Petroleum Reserve

2020: Trump wanted to fill the SPR…with oil trading about $30 per barrel during Russia-OPEC oil war

Cheap oil from Saudi Arabia, the world’s largest exporter, and the United Arab Emirates is aggravating the pressure on prices after talks to cut production with Russia soured late last week. Russia, the world’s second-largest producer, does not appear willing to return to its agreement with the Organization of the Petroleum Exporting Countries (OPEC), which has kept oil in a range around $30
a barrel for much of the last week.

For the week, Brent is set to fall around 24%, the biggest weekly decline since December 2008, when it fell nearly 26%.

“As of the latest data (March 6) the SPR was 92 million bbl short of capacity. This is the perfect time to top it up: prices are low and we’re engaged militarily in the Middle East. For once, Russia’s loss is our gain,” said Scott Nations, chief investment officer of NationsShares.”

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When Trump entered office the SPR was about 670 million barrels
When he left office the SPR was about 640 million barrels

Joe Biden has ordered the sale of another 15 million barrels from the SPR in December…when OPEC plans to cut production by 2 milion barrels per day, and the US plans to sanction Iran and try to pressure the world into capping the price of Russian oil at $70 per barrel

h/t Redacted Dodger007


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