Posted on 11/15/2021 11:11:47 AM PST by Hojczyk
The U.S. Strategic Petroleum Reserve is the world’s largest emergency stockpile of crude oil, but talk of a release from the reserve may be only a short-term fix to high prices of oil and gasoline.
“Tapping the SPR will only address the symptoms of what is driving prices higher and cannot solve the tightness in the market,” Matthew Parry, head of long-term analysis at Energy Aspects, told MarketWatch.
Releasing more crude from the SPR would have no impact on gasoline supplies, said Anas Alhajji, an independent energy expert, who’s also managing partner at Energy Outlook Advisors LLC.
That option is only one of several that Alhajji has outlined—all of which, he says, are “bad options,” including a ban or limit on crude exports and political pressure on OPEC.
The size of any SPR release would matter, said Parry, but what is being considered will likely be only be a “drop in the bucket against a backdrop of very low stocks.”
“The market has already priced in an SPR release to a large extent—and much of the price and spread moves seen in recent days are signs of exactly that,” he said.
One of the more sensible solutions might be to do an “exchange,” Tom Kloza, global head of energy analysis at the Oil Price Information Service (OPIS), told MarketWatch.
“Oil could be released in Texas and Louisiana SPR facilities and replaced (by the bidders) some six to 12 months down the line,” he said. “That might ostensibly ease the pressure on winter prices and not compromise emergency reserves down the road.”
To be clear, stocks of the reserve have seen some drawdowns in recent months.
President Biden said that gasoline prices are a “consequence of, thus far, the refusal of Russia or the OPEC nations to pump more oil.”
(Excerpt) Read more at marketwatch.com ...
In that case, we can be sure that will be the option Brandon will choose.
Tapping the SPR is exactly what Biden will do.
It’s wrong.
He’ll do it.
Yo Bare Shelves Biden
Instead of begging our enemies to sell more, get US Domestic production back to where we are a net exporter again.
Who remembers when Clinton sold the Elk Hills Reserve to an oil company-—that Al Gore bought????
Normally high gas prices will trigger new and additional projects both in production and refining that ultimately bring prices back down.
But thats in a normal market where producers and refiners are allowed to do what they do best. With Biden’s handlers at the helm, I have no confidence that will happen. I expect to see prices go only higher.
“Use it all up!” Gee, maybe the DC communist criminal cabal is moving to empty every gas tank in the country thus leaving our military and us immobile. Now why would they do that?
If tapping the reserve has potential to harm US interests you can bet that this administration will push for it!
Tapping a strategic reserves for short term political idiocy is pure stupidity, so of course the Democrats will do it. Obama did it for exactly the same reason. The only reason the reserve is there to tap is because Trump refilled it when the oil price was low, and of course the Democrats tried to stop him.
Let’s go Brandon!
Hmmm. Strategic Petroleum Reserves. Sounds like these reserves are for ‘strategic’ purposes. Just doesn’t sound very strategic to shut down oil pipelines, reduce domestic oil production, and then try to weather the consequences by dipping into the SPR.
Get it out of Brandons ass. I hear there is alot of gas there....Lady Camilla is still tslking about it
Trump filled it with cheap oil...Biden will fill it back up with 100 dollar oil..
Absolute insanity! Two years ago there was NO energy crisis whatsoever, the world was awash in oil. This situation shows the power of socialist leftism to destroy. The fact that they’re doing it on purpose doesn’t change the fact that if they were trying to save fossil fuels they’d still screw it up just as badly.
Yes, I agree.
Carter set up the SPR. His successors used it for political gain. Since there’s nothing in it for the GOP we should empty it. Give it to Cuba-as needed. It will last a long time. Just make them get rid of the communists.
If Biden screws things up terribly, the SPR may actually give
us a jump start when our side gets to address gasoline supply.
I have viewed it as a supply for our military. I don’t have
a problem with it.
Yous is a view I haven’t seen pushed before. I’m not sure I
would agree, but I can’t definitively object, although I do
lean that way.
I suggest betting money in oil stocks that they will be going yet higher.
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