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January 1, Biden Drains Oil Reserves Amid Looming Mideast Turmoil
The Biden administration, in its attempt to placate soaring fuel prices, has offloaded more than 40% of the U.S. Strategic Petroleum Reserves.
This move has drawn the reserves down to a concerning 352 million barrels—slashing it to less than half of the 727 million barrels it held during the Obama years, according to Politico.
Shockingly, U.S. SPR stockpiles are now at their lowest since the initial days of the 1980s.
Flashback 50 years ago to 1975, when a Middle East war sparked enough concern for President Ford to accumulate these reserves. The intention? Protect the nation from energy threats posed by hostile countries.
Now, as history often does, it’s rhyming. We’re staring down another Mideast crisis, this time between Israel and Hamas in the Gaza Strip.
While these regions aren’t oil producers, energy experts are voicing apprehensions over the potential fallout on global oil prices. Especially if this turmoil extends its tentacles to Iran, a nation pumping out 3 million barrels of oil daily.
Anne Slattery, from risk consulting firm RSM, offers a sliver of optimism: “Since oil is not produced in Israel or the Gaza Strip, the outbreak of hostilities and its impact on the broader global oil and energy markets should be limited in scope and duration.”
However, she goes on to note, “As long as the conflict remains contained and does not directly involve Iran, the price of oil should ease back to pre-conflict levels.”
Yet, even if Iran remains neutral, there’s growing chatter that the Biden administration might yield to political forces, potentially stifling Iran’s oil flow with more rigid sanctions.
Consequently, Brent futures experienced a spike, rising to $90.10 a barrel—a stark increase from the $80 prior to the ongoing conflict.
Republicans are firing back. House Natural Resource Committee Chairman Bruce Westerman (R-Arkansas) squarely places the blame on Biden, saying, “Joe Biden’s fault for trying to lower the price of gas before the election.”
The sentiment echoes former House Speaker Kevin McCarthy’s (R-Calif.) declaration that, “Our Strategic Petroleum Reserve is down to nothing.”
In defense, the Biden administration justifies their oil reserve sales as safeguards against unexpected price surges. The U.S. Treasury Department’s numbers argue in their favor, claiming that this strategic sale lowered gas prices by 40 cents a gallon. As of last Friday, the average U.S. gallon price was $3.63, marking a 28-cent drop from the previous year.
Energy Secretary Jennifer Granholm seems unfazed: “I am not worried about the reserve levels at all. It is the largest strategic reserve in the world.”
But with the U.S. as today’s leading oil producer, some are uneasy about how markets would react if the Middle East conflict widens.
Bob Ryan, an analyst with BCA Research, warns that the dwindling SPR levels place the U.S. in a precarious position, “relying on Saudi Arabia and others with spare capacity to ramp supply in the event of a cutoff” from Iran.
Closing with a punch, Bob McNally of Rapidan Energy highlights the pitfalls of the current strategy, stating, “It’s not a good idea to mindlessly sell off our strategic reserve.”
He further laments, “It’s to their credit that even the Biden administration has realized that the SPR has gotten too low—but now they’re getting mugged by reality.”
As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.
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too old to con
October 18, 2023 at 7:19 pm
it will come back to haunt this country. our enemies know we are weak because we have no leadership at all. the pResident has no ability to rationalize our predicament. this country is as close to war aa we have ever been. and biden fiddles like Nero. we have sent every cent we can print to ukraine, and now to Israel. why? we dont owe them anything. we are close to bankrupting this country. biden spends money like a drunken sailor with no regard to how we can pay it back. then he lets in millions for us to feed, cloth, pay rent and medical bills, put through schools at thousands of dollars per immigrant child. not to mention the fact that none speak this language, and will require specially paid tutors. this country is being destroyed by obama, the puppet master, and biden the puppet. biden belongs in a nursing home, and obama a prison cell. and they have hounded and pursued President Trump to the ends of the earth. 91 made up charges that the demon rat party pulled out of their a–. none are legit. they are scared to death he will win election and they will lose their gravy train of grifts. the country is doomed if biden cheats his way in again. a poll released today said 43 of 50 states disapprove of biden. the other 7 are facing bankruptcy. how did biden get 71 million dollars donated to his campaign fund in the third qtr. of 2023????? did some of that money come back from ukraine?? I bet it did. Soros, also gave a lot. lets see the list of donors for joey, since his ratings suck. he won’t reveal the sources, as they are communist country donations. what a loser. s
Lelia Wilson
October 18, 2023 at 7:28 pm
We need to drill baby drill. Our oil reserve is our national security….plus do people realize how many everyday products we use are petroleum based?
blauglas
October 18, 2023 at 7:44 pm
Americans (that is mainly the Conservative Voters): Hello. Yeah, right. the obiden regime would just drain the Strategic Petroleum Reserves to the dregs in the bottom of all the tanks.
That’s OK, the communist obiden regime thugs will just blame it on President Trump, who TOPPED-OFF FILLED the SPR during his administration.
Nolan Welch
October 18, 2023 at 7:47 pm
Of course he will drain the supply because social security takes that part of the economy to figure out what the next COLA will be at the end of the year. If he can keep gasoline at a lower cost the smaller the COLA will be. Don’t ask me what the importance is with figuring the price of oil and gasoline with social security because I don’t know . Anyway we are at that point now where the government decides what the COLA will be. They pulled the same thing last year. Instead of getting around 11% like the figured like at first they worked it down to into the 8% bracket at the last minute. its all a ploy that social security people have to put up with besides it will hurt Ukraine and Isreal and now Gaza for the free money our tax payers have to pay.
I love Freedom
October 19, 2023 at 11:14 pm
I read that Biden is not basing our SS increase on the CPI for 2024. I read he is making the increase 3 1/2 % and this would be the increase going forward every year after 2024. You can’t believe everything you read, BUT anyone else heard this?
gary setzer
October 18, 2023 at 8:14 pm
What Wrong With Joe Biteme. Get him out of here.
1PatriotfForever
October 18, 2023 at 9:08 pm
CONGRESS needed to stop him but Nope because 95% are money laundering pukes themselves. Selling their soul is a small price to pay they think ^5
jack black
October 18, 2023 at 9:15 pm
USA needs to get the hell out of middle east.NO MORE money to Hamas or Gaza !
Our money needs to be spent on our southern border.
Donald R Cook
October 18, 2023 at 10:27 pm
the Demon-crats don’t care about the USA or the American People. They are doing everything in their power to start WW3
Nico
October 19, 2023 at 12:24 am
Obama did this. BIDEN IS A REETARD
Nate
October 19, 2023 at 7:17 am
IDIOCY has no bounderies!
Nate
October 19, 2023 at 7:18 am
Who are “the moderators” and then what?
Gerald Scott Ladd
October 19, 2023 at 9:21 am
Biden is a moron. The world knows it!
Newdelman
October 19, 2023 at 10:18 am
This is typical Biden anti-America action. He’s trying to force EVs on the nation. His actions are careless and reckless considering there is little domestic oil production. Relying on foreign oil is a dangerous action. But Biden never thought through such nonsense. He’s terribly reckless and is endangering this nation more than he knows.
John
October 19, 2023 at 10:41 am
What was expected from the Brain Dead Idiot.
EUGEN
October 19, 2023 at 12:00 pm
IF NO ONE REALIZED WHAT A TOTAL IDIOT BIDEN IS. NOW IS THE TIME TO KICK HIM OUT, HE CERTAINLY IS NOT OUR PRESIDENT. EVERYTHING TRUMP HAD IN PLACE BIDEN DESTROYED. OUT OF JELESEY BECAUSE TRUMP IS A BETTER EVERYTHING, STRONG,, HAS HONOR AND INTEGRITY. PLUS OUR ALLIES RESPECT HIM, PLUS WE HAD NO WAR. BIDEN IS NOTHING BUT A FAILURE, WAR MONGER.
T.S. Moses
October 19, 2023 at 12:16 pm
This administration is tragically short sided in assuming that the powder keg qe call the Midfle East will react as theyprolonged.
What decisions has this administration made that haven’t been a monumental disaster.
Pure unadulterated insanity.
The past is prologue.
Willie1955
February 1, 2024 at 8:04 am
When you have people in the democrat party who believe every lie they have heard or told especially the climate change extremists like Gore and Kerry who are nothing more than hypocrites telling mush brains that oil is bad electricity is good also hate America and what she stands for. This country is going to wind up in a war on different fronts without the energy we will need so our military will be sitting ducks. It will also hinder manufacturing of weaponry and our ability to secure our own country. FJB