Biden administration to buy 3 million barrels of oil to replenish reserves

[mystery-ak]

 Biden administration to buy 3 million barrels of oil to replenish reserves
by Zack Budryk - 12/16/22 1:31 PM ET

The Department of Energy will purchase 3 million barrels of oil to replace withdrawals from the Strategic Petroleum Reserve (SPR) amid high energy prices, it announced Friday.

The Biden administration presented the purchase, which follows a bidding process that began in October, as an opportunity to buy the oil at a fixed price and repurchase it for less than the average of $96 per barrel it sold for.

“Relative to conventional purchase contracts that expose producers to volatile crude prices, this new approach, when used at scale, can give producers the assurance to make investments today, knowing that the price they receive when they sell to the SPR will be locked in place,” the Energy Department said in a statement. “Today’s notice will pilot this new approach by starting with a purchase of up to 3 million barrels of crude oil.”

After oil prices soared earlier this year following Russia’s invasion of Ukraine, the Biden administration withdrew a record 180 million barrels from the SPR. The administration announced a plan in May to solicit bids to buy back about one-third of the barrels withdrawn.

Energy Secretary Jennifer Granholm said in the spring that the buyback process would be timed to decreased oil prices.

more
https://thehill.com/policy/energy-environment/3778192-biden-administration-to-buy-3-million-barrels-of-oil-to-replenish-reserves/

[Sighlass]

Midterms are over, Biden has gotten his crow in about lower prices, time to raise prices again.

[EdinVA]

Making OPEC dance with glee daily..

[Hoodat]

Current inventory - 387 million bbl.

Inventory when Biden took office - 638 million bbl.

[catfish1957]

Midterms are over, Biden has gotten his crow in about lower prices, time to raise prices again.

And Pedo Joe accuses Big Oil of price manipulation.  What a joke.

[unite for individuality]

The Department of Energy will purchase 3 million barrels of oil
to replace withdrawals from the Strategic Petroleum Reserve (SPR) ...

The Biden administration presented the purchase,
which follows a bidding process that began in October,
as an opportunity to buy the oil at a fixed price
and repurchase it for less than the average of $96 per barrel it sold for.

After oil prices soared earlier this year following Russia’s invasion of Ukraine,
the Biden administration withdrew a record 180 million barrels from the SPR.
The administration announced a plan in May to
solicit bids to buy back about one-third of the barrels withdrawn.

If the illegal coup on January 6, 2021 had not robbed us of our actual President,
war in Ukraine would be less likely.
He probably would have negotiated a deal that
both Russia and Ukraine could live with, if not be happy with.

Also, Trump would not have drastically cut back on domestic drilling,
as Biden did on day one.

Replacing 180 million barrels with 3 million barrels is trivial.
It has no significant effect to repair the damage to our national security.
It is an insult to our intelligence.

The reason that oil is fairly cheap right now is,
China is again locking down its economy
in response to another outbreak of Covid.
We got lucky - our adversary is making an unforced error.