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Biden admin stops pulling oil from U.S. reserve after 14 months of draws
Published Jan 19, 2023 12:22PM ET
© Reuters
By Barani Krishnan
Investing.com -- The Biden administration has stopped drawing crude oil from the U.S. Strategic Petroleum Reserve, the Energy Information Administration said in its weekly inventory report Thursday, as the government attempts to rebuild a reserve it pulled more than 200 million barrels from to keep fuel prices low for Americans.
The EIA reported an SPR crude balance of 371.6M barrels at the end of the Jan. 13 week, unchanged from the previous week to Jan. 6. The zero SPR draw for last week closes the chapter on some 220M barrels taken from the emergency oil reserve since November 2021 by the Biden administration to provide more crude to the marketplace and bring pump prices of gasoline down.
Prior to those draws, SPR inventories stood at just under 600M barrels. At their present level of just above 370M, the reserve’s stockpiles are at their lowest since December 1983, the EIA said.
At one time, the administration drew as much as 8M barrels weekly from the reserve. The crude releases from the SPR, along with other global market developments, added significantly to international oil supplies over the past year. They helped slash crude prices from a high of more than $130 a barrel in early March, right after the outbreak of fighting in Ukraine and the subsequent sanctions on Russian crude, to below $90 a barrel by August.
The strategy worked for the administration: pump prices of gasoline fell to below $3 a gallon at some U.S. pumps by late last year from a mid-June record high of $5 as the SPR draws flooded the domestic marketplace for crude. Gasoline at U.S. pumps now average $3.38 a gallon, the American Automobile Association said on its website Thursday.
Last week’s zero SPR draw came after the administration announced late last year that it was winding down its dependence on the reserve and preparing to add to its inventory.
The administration is negotiating purchases with U.S. energy firms to refill the reserve, starting with a base offer of $70 per barrel. With U.S. crude trading at just above $81 a barrel on Thursday, sellers will likely be seeking more, resulting in a longer lag to replenish the reserve.
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Comments (10)
Jean Staples
Jul 05, 2023 9:17AM ET
This article was written in January 2023. I believe we’re now in July, so this is old news! And by the way Biden has not stopped pulling oil from the strategic reserves. He is doing it every Wednesday of every week. Talk about manipulation! Why is he doing it because he wants to get reelected in 2024! We are going to be in serious trouble as a nation if we have some type of catastrophic event or major economic crisis And will not have the oil in our country to do what needs to be done: moving transportation across the country, airplane travel, freight lines, etc. and etc. Donald Trump was bad enough when he was in office, but Joe Biden needs to retire.
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Jim Davies
Jul 05, 2023 9:17AM ET
Bidenomics at work, release the oil reserves while price is declining and accumulate oil while prices are rising
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Jim Bass
May 24, 2023 6:07AM ET
Biden started the entire inflation and energy crisis when the first thing he did when he took over was declare war on fossil fuels and the oil companies
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Elezabeth Thomas
Jan 19, 2023 2:57PM ET
Weak, weak, weak!
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Brad Albright
Jan 19, 2023 2:41PM ET
Barani with the facts. Thanks, Barani.
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Barani Krishnan
Jan 19, 2023 2:41PM ET
Most welcome, Brad. And thanks for the support as always.
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Barani Krishnan
Jan 19, 2023 2:41PM ET
Brad, I propose the naysayers insist on paying $5 at the pump instead of the prevailing 3+. They can ask that the extra money go to the API since they seem to love paying more. That will make the industry happy too. Win-win!
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Brad Albright
Jan 19, 2023 2:41PM ET
Barani Krishnan LOL, Yes, that's a great idea.
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Barani Krishnan
Jan 19, 2023 1:05PM ET
Thanks for the feedback, everyone. I can see from many of your comments how annoyed you are that he actually managed to gas down from that $5/g record, and I don't think it has anything to do with your love for keeping the SPR high :) Many are also probably praying that he'll fail to refill the reserve. Well, que sera sera.
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Erikke
Jan 19, 2023 1:05PM ET
more conjecture and speculation
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Brad Albright
Jan 19, 2023 1:05PM ET
Well said, Barani. Biden succeeded in helping Americans and some people can't stand it.
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Bob Males
Jan 19, 2023 1:05PM ET
Biden is a leftist.
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Erikke
Jan 19, 2023 1:03PM ET
Conjecture
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Barani Krishnan
Jan 19, 2023 1:03PM ET
Erikke, 3 thumbs up for you vs 3 thumbs down for me. LOL!
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Erikke
Jan 19, 2023 1:03PM ET
sorry. I only have one account on investing. com
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Sylvia Doloff
Jan 19, 2023 12:58PM ET
Biden forgot Harris's first name so he called her a camel and said she is a work in progress need I say anymore
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EL LA
Jan 19, 2023 12:53PM ET
Ya, boss, we'll get right on that lowball offer after lunch, maybe, doubt it though. Slavery is not an economical incentive.
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Brad Albright
Jan 19, 2023 12:53PM ET
LOL. Your pitch sounds ludicrous to the freest people in the world.
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First Last
Jan 19, 2023 12:53PM ET
Crude oil is black. I can see why you're confused.
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Barani Krishnan
Jan 19, 2023 12:53PM ET
Brad Albright propose the naysayers insist on paying $5 at the pump instead of the prevailing 3+. They can ask that the extra money go to the API since they seem to love paying more. That will make the industry happy too. Win-win!
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Casador Del Oso
Jan 19, 2023 12:40PM ET
Sell low, buy high.
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First Last
Jan 19, 2023 12:40PM ET
Don Getty
Jan 19, 2023 12:40PM ET
guess you're deciding to ignore the drop in russian supply and the opec cuts - okay keep being us centric
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First Last
Jan 19, 2023 12:40PM ET
Brad Albright
Jan 19, 2023 12:40PM ET
First Last
Jan 19, 2023 12:40PM ET
Brad Albright Too many people here don't even understand what their own posts says.
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