Reuters:
U.S. Energy Secretary Jennifer Granholm told CERAWeek oil stocks in the Strategic Petroleum Reserve (SPR) at year-end will be at or exceeding the level that would have existed prior to massive sales two years ago. Stocks will reach those levels in part on the cancellation of congressional-mandated sales of about 140 million barrels, the secretary added. The reserve currently holds about 362 million barrels, down from 638 million three years ago.
I will believe this when I see it. If true, this will put upward pressure on oil prices. So, it will raise gasoline prices heading into an elections. Seems "out of character" for Team Biden.
Trading Economics:
"WTI crude futures rose above $82 per barrel on Monday, extending gains from last week as heightened geopolitical risks continued to spark supply concerns. Ukraine stepped up drone strikes on Russian oil refineries over the last week, idling around 7% of Russian refining capacity in the first quarter, according to a Reuters analysis. Israeli Prime Minister Benjamin Netanyahu also said he will proceed with plans to push into Gaza’s Rafah enclave, making chances for a peace agreement more difficult. Meanwhile, investors will watch monetary policy decisions from major central banks this week for clues on the timing of interest rate cuts. Last week, oil prices advanced nearly 4% as the International Energy Agency issued a bullish demand outlook and predicted a slight deficit for this year."
Clearly we have a significant "Paradigm Shift" among the Wall Street Gang's view of the global oil market.
Team Biden says they will refill the SPR
Team Biden says they will refill the SPR
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Team Biden says they will refill the SPR
An update from Reuters:
HOUSTON (Reuters) -U.S. oil stocks in the Strategic Petroleum Reserve (SPR) at year-end will be at or exceeding the level that would have existed prior to massive sales two years ago, U.S. Energy Secretary Jennifer Granholm said on Monday.
Stocks will reach those levels in part on the cancellation of congressional-mandated sales of about 140 million barrels, the secretary added. The reserve currently holds about 362 million barrels, down from 638 million three years ago.
Other congressionally mandated sales may also be canceled, Granholm said.
Having the SPR refilled is a congressional priority and "that's a conversation we'll be having with them," Granholm said.
Completion of maintenance at one storage site will allow the United States to buy more oil, Granholm said at the CERAWeek energy conference in Houston.
Energy officials are monitoring the rise in U.S. oil prices and its impact on repurchases, Granholm said. The Department of Energy had aimed to repurchase the oil under $79 a barrel. U.S. crude futures was trading above $82 on Monday.
She also said the Biden administration's liquefied natural gas permitting pause "will be long behind us by this time next year." The pause is temporary and for study purposes only, she stressed.
She did not say when the export authorizations could resume, but ruled out estimates of a 10- to 14-month delay.
"The LNG pause should not be impacting major decisions globally, because it is simply a temporary pause," the secretary said, when asked about concern about worries of higher coal buying in Asia.
HOUSTON (Reuters) -U.S. oil stocks in the Strategic Petroleum Reserve (SPR) at year-end will be at or exceeding the level that would have existed prior to massive sales two years ago, U.S. Energy Secretary Jennifer Granholm said on Monday.
Stocks will reach those levels in part on the cancellation of congressional-mandated sales of about 140 million barrels, the secretary added. The reserve currently holds about 362 million barrels, down from 638 million three years ago.
Other congressionally mandated sales may also be canceled, Granholm said.
Having the SPR refilled is a congressional priority and "that's a conversation we'll be having with them," Granholm said.
Completion of maintenance at one storage site will allow the United States to buy more oil, Granholm said at the CERAWeek energy conference in Houston.
Energy officials are monitoring the rise in U.S. oil prices and its impact on repurchases, Granholm said. The Department of Energy had aimed to repurchase the oil under $79 a barrel. U.S. crude futures was trading above $82 on Monday.
She also said the Biden administration's liquefied natural gas permitting pause "will be long behind us by this time next year." The pause is temporary and for study purposes only, she stressed.
She did not say when the export authorizations could resume, but ruled out estimates of a 10- to 14-month delay.
"The LNG pause should not be impacting major decisions globally, because it is simply a temporary pause," the secretary said, when asked about concern about worries of higher coal buying in Asia.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group