(Bloomberg) — The Biden administration is considering replenishing the Strategic Petroleum Reserve when oil dips below $80 a barrel, just two years after Democrats blocked former President Donald Trump from filling the reserve at a fraction of that price.
Trump in March of 2020 was looking to stabilize the oil industry after Covid-19 hit in 2020 and crushed global petroleum demand. With oil at the time priced at about $24 a barrel, Republicans proposed spending $3 billion to fill up the reserve. But the idea became a political football in larger negotiations on trillions in coronavirus relief, with Senate Democratic Leader Chuck Schumer proclaiming that his party had blocked a “bailout for big oil.”
That decision effectively cost the US billions in potential profits and meant Biden had tens of millions of fewer barrels at his disposal with which to counter price surges.
It also will take more oil to fill the reserve than two years ago. In March 2020, the reserve had 634 million barrels stored out of a capacity of 727 million barrels. After a record drawdown last week, the reserve is down to 442 million barrels, its lowest level since 1984.
https://www.yahoo.com/finance/news/b...212325051.html
Buying low .... wish that didnt become a political issue. No matter who is president, we should always restock when its low.
And I dont want to hear abut Biden tapping into the reserves iN a NoN EmeRgENcy SItuAtIoN... Trump taped into them when some drones flew into SA oil infrastructure that slowed SA production for a few weeks.
200 million barrels bought at even $64 a barrel = 8 Billion extra (200M * $40)