U.S. to sell up to 45 million bbls oil from reserve as part of historic release

[libertybele]

U.S. to sell up to 45 million bbls oil from reserve as part of historic release

The U.S. Department of Energy on Tuesday said it was selling up to 45 million barrels of oil from the Strategic Petroleum Reserve as part of the Biden administration's previously announced, largest-ever release from the stockpile.

Deliveries of crude from the SPR sale would take place from Aug. 16 through Sept. 30, the Energy Department said.

The Biden administration said in late March it would release a record 1 million barrels of oil per day of oil for six months from the SPR, held in a series hollowed-out salt caverns on the coasts of Louisiana and Texas.

The release was meant to help control oil prices that spiked after Russia, one of the world's top petroleum producers, invaded Ukraine and as the West imposes sanctions on Moscow.

Prices for global benchmark Brent crude have marched higher since the March 31 announcement to trade above $120 a barrel. The rise has come as few global oil producers have spare capacity while consumers emerging from the pandemic drive fuel demand.

Biden administration officials have said the oil price could be higher if the SPR had not been tapped. But the release has also driven the level of the reserve to the lowest point since 1987, adding to worries about tight global oil markets despite the United States having more in the stockpile than required under international agreements.........

https://www.yahoo.com/finance/news/u-sell-45-million-bbls-203210454.html

[Hoodat]

The release was meant to help control oil prices that spiked after Russia, one of the world's top petroleum producers, invaded Ukraine and as the West imposes sanctions on Moscow.

The release is meant to weaken the US by depleting our strategic petroleum reserve.  It has nothing to do with controlling the price of oil, except to see it rise after we've lost our ability to use the reserve as a threat.

[Wingnut]

What a dickhead move by the current dick in office.

[libertybele]

What a dickhead move by the current dick in office.

 

[libertybele]

The release is meant to weaken the US by depleting our strategic petroleum reserve.  It has nothing to do with controlling the price of oil, except to see it rise after we've lost our ability to use the reserve as a threat.

Exactly. He's quickly depleting our country of resources and supplies and crashing our economy so that we become a 3rd world nation.

[IsailedawayfromFR]

As I understand the authorization for the law creating the SPR, it is to be used for interruption of supply, not to manipulate prices.  Created during the Arab Oil embargo of 1973.

Summary List of Historical Releases -  click here

Past Sales

FY 2020 Mandated Sales: 9.85 million barrels
FY 2019 SPR Modernization Sale: 4.2 million barrels
FY 2019 Mandated Sales: 10.87 million barrels
FY 2018 SPR Modernization Sale: 4.74 million barrels
FY 2018 Mandated Sales: 14.17 million barrels
FY 2017 Mandated Sales: 10 million barrels
FY 2017 SPR Modernization Sale: 6.28 million barrels
2014 - March: Test Sale - 5 million barrels
2011 June: IEA Coordinated Release - 30,640,000 barrels 
2005 September: Hurricane Katrina Sale - 11 million barrels
1996-97 October; January; April:  Total non-emergency sales - 28 million barrels
1990/91 September, January: Desert Shield/Storm Sale - 21 million barrels
(4 million in August 1990 test sale; 17 million in January 1991 Presidentially-ordered drawdown)
1985 - November: Test Sale - 1.0 million barrels


These two non-emergency releases by Clinton and Obama really stick out.

[LMAO]

Last time they did this, gas prices went up.

[Wingnut]

Last time they did this, gas prices went up.

And they will again.   

[catfish1957]

Here is a possible and potential upcoming Headline....

September 7, 2022-  Urgent

Major Category 5 Hurricane Martin is creating a worst case scenario situation by paralleling the NW Gulf Coast wrecking havoc with rigs and refining capacity from Houston to Lake Charles.  Winds of 190 mph and 20 foot storm surge has innundated most of the NW Gulf, bringing 65% of U.S. oil producing and refining capacity to a halt. Billions of dollars of damage is expected to petrochemical industry

September 10, 2022-

Massive capacity shortfalls from storm plus previous biden Administration depletions of the Strategic Oil Reserves are creating emergency fuel shortages nation wide.  Spot West Texas Intermidiate prices have shot up to $234/BBL, where oil can be found.  All 50 state govenors at behest of President Biden  have invoked emergency rationing, and fuel tags are being issued only to essential people who have jobs and work related to critcal national infrastruture and support

September 15, 2022--

Fuel rationing has crippled supply chain aspects of food.  Widespread reports of empty shelves at grocery stores is causing spordic street violence.  Also reports of emergency pharmaceutical shortages that have invoked medical emergencies.

[cato potatoe]

Aren't there less than 4 weeks in reserve at present?  This is dangerous.

[PeteS in CA]

  One-time market events cannot remedy a long-term deficiency of supply. This will only deplete the oil reserve intended to insulate the US military from oil supply disruptions.