Strategic Petroleum Reserve (SPR) Update - Dec 17

[dan_s]

Since March of this year, President Biden has withdrawn 180 million barrels from the reserve. In early November, he shrank the country's oil reserve to its lowest level since 1984, Axios reports. Biden authorized the release of oil from the Strategic Petroleum Reserve to help bring down gasoline prices, which were soaring in early 2022. < Also, to buy votes in the midterm elections.

On December 16th Old Joe announced that the United States will soon purchase 3 million barrels of oil in order to replenish the country's dwindling Strategic Petroleum Reserve.

The big picture: The Biden administration tapped into the country's Strategic Petroleum Reserve earlier this year to slow down rising gas prices.

Driving the news: The Department of Energy said the new purchase is "a good deal for American taxpayers" since the repurchasing price will be lower than the $96 per barrel average price it was originally sold for.

The move will also "strengthen energy security," the DOE said.
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MY TAKE: The purchase is only 3 million barrels during the month of February, which compares to draws from the SPR of close to a million barrels per day thru November. MORE IMPORTANT IS THAT THE DRAWS FROM THE SPR HAVE STOPPED. Since the U.S. is now a net importer of crude oil and refined products, we are a "Price Taker". OPEC+ has total control over of the world's oil price and they need higher oil prices to balance their budgets. U.S. oil production will decline in Q1 like it does each year and some Russian oil will be taken off the market, so all the OPEC cartel needs to do is stick to their current official quota (which they are already producing below) and the OECD petroleum inventories will continue to decline.

[Fraser921]

>$96 per barrel average price it was originally sold for.

Why did Biden gouge buyers by selling at $ 96? Did he plow the excess profits into drilling?

[aja57]

Looks like he sold to the China
https://www.instituteforenergyresearch. ... -discount/

[Fraser921]

The link didn't work but I assume it said we sold our oil to China only to buy the refined products back.
Russia is selling relatively cheap oil to India who refines it and sends it back to the EU
So the EU doesn't directly buy it but they still indirectly buy it.
Turkey who is not part of the EU buys the "cheaper" Russian oil"uses it or mix it with other crudes then resells it to the EU.

All of these moves is driving up tanker demand.
I mentioned TRMD in May at 9 now pushing 30. Other beneficiaries are STNG, TNK INSW TK DHT FRO ASC