Crude up as Biden says he will start refilling spr

Post Reply
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Crude up as Biden says he will start refilling spr

Post by Fraser921 »

Fake news, says later this year , whatever that means.

Trying to defuse the issue as we move closer to the election. :roll:

Rally started at 11 30 am est , picking up steam as this hits the wire

Biden administration plans to begin purchasing oil to replenish the Strategic Petroleum Reserve helped cover speculative short positions, said Robert Yawger, executive director of energy futures at Mizuho.

Energy Secretary Jennifer Granholm has said the administration could start buying back crude oil for the Strategic Petroleum Reserve late this year after President Joe Biden last year directed the largest sale yet from the stockpile.

A report from the Energy Information Administration (EIA) pointing to higher seasonal demand and lower-than-expected output also supported prices.

“We expect the seasonal rise in oil consumption and a drop in OPEC crude oil production to put some upward pressure on crude oil prices in the coming months,” the Energy Information Administration said in its Short Term Energy Outlook
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Crude up as Biden says he will start refilling spr

Post by Fraser921 »

Tuesday it was late this year, two days later it's in June.

Wondering out loud if they are worried producers will cut back production. Anyone have theories?
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Theory on mixed messages

Post by Fraser921 »

Found this



The announcement on a plan to refill the reserve comes suspiciously right after White House National Security Advisor Jake Sullivan met with Saudi Crown Prince Bin-Salman in what was a mission to repair relations with the Biden administration for their amateurish foreign policy with the kingdom that the administration vowed would make it a pariah state.

Many traders and oil industry insiders believe that the move by Saudi Aribia to announce a surprise cut in oil production was because the Biden team seemed to back off a promise to refill the reserve when oil prices went below $70 a barrel. At that time Energy Secretary Jennifer Granholm reportedly angered the Saudi’s when she said that that refilling the SPR at $70 per barrel in 2023 would be difficult. She said that the United States couldn’t repurchase crude oil for the SPR and sell crude oil out of the SPR at the same time. This is from the administration that always brags about being able to walk and chew gum at the same time. In fact, walking and chewing gum may be the only thing they have succeeded in doing right.

At the same time the administration put out a report that seems to bristle at industry insiders and Republican claims that suggest that Biden’s unprecedented drawdowns from the SPR is damaging the salt domes leaving the SPR less effective as an emergency tool for real emergencies. Not emergencies like falling poll numbers over raising gasoline prices or emergencies like record oil exports to China or India but a war or other natural disasters and disruption that could shut down the US economy.
Post Reply