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POTATUS Backs Out of Latest SPR Buy Cuz…? Hey! That’s *&%#’s Expensive!

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8 months ago

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Remember the big plan? Ignore the fact that he drained the thing. POTATUS was here to tell you he was gonna FILL IT BACK BETTER!

Until he didn’t…and didn’t…and fuggedaboudit now. Holy crap – have you seen the price of oil lately?

Welcome to our world, dudes.

If only someone had warned him.

The Biden administration won’t move forward with its latest plans to buy oil for the Strategic Petroleum Reserve amid rising prices.

The Energy Department said it was “keeping the taxpayer’s interest at the forefront” in its decision not to purchase as many as 3 million barrels of oil for a Strategic Petroleum Reserve site in Louisiana. The plan for the barrels to be delivered in August and September had been announced in mid-March.

“We will not award the current solicitations for the Bayou Choctaw SPR site and will solicit available capacity as market conditions allow,” the department said. “We will continue to monitor market dynamics.”

The move follows a rally in crude prices, with US benchmark West Texas Intermediate on Tuesday breaking above $85 a barrel for the first time since October. The Biden administration has a target to buy oil at $79 or lower to refill the reserve, though spent an average of about $81 a barrel in its latest purchase of 2.8 million barrels late last month.

Yeah, that Joe and his economic team – super savvy shoppers. Sharp as tacks.

Lucky thing that SPR is so big it’d take forever to drai…wait, whut?

The operators pulling POTATUS levers might not be able to add, but they can count. That brain trust knows what years elections happen in

Biden administration guys are brilliant, you know.

Only in the Bugs Bunny stra-TEE-gery sense, not because they have a clue.

…The Energy Department has been slowly refilling the emergency oil supply after it reached a 40-year-low following the administration’s unprecedented drawdown of a record 180 million barrels in the wake of Russia’s invasion of Ukraine. It currently holds about 363 million barrels, according to Energy Department data, down from almost 600 million at the start of 2022.

Why are oil prices kicking up? Well, war breaking out all over hasn’t helped a lick, but knowing that the U.S stockpiles are depleted (purposefully so, don’t forget) plus that another cozy OPEC ministers meeting confirmed current production cuts would remain gave prices a chance to climb back up above the elevated state they have already been enjoying.

LET’S GO, BRANDON

Oil edged higher, extending a rally that has brought prices to a five-month high, after OPEC+ ministers affirmed current supply cuts.

Brent rose to within one cent of the $90-a-barrel psychological level on Wednesday after OPEC and its allies didn’t recommend any changes to their existing output cuts at an online ministerial review meeting. The move means roughly 2 million barrels a day of curbs will be in place until the end of June.

Well, no worries. The way things are going, gas prices will be back up to where no one can afford to buy the stuff anyway, and that’s only if nothing else goes wrong.

Financial gurus are predicting another summer of expensive driving, thanks to all of this.

In an environment marked by a combination of tight supply, escalating demand, and ongoing geopolitical tensions, oil prices are projected to surge, potentially reaching a peak of approximately $95 per barrel this summer.

…“Oil is fighting the Fed, again,” Blanch stated in a note published Wednesday. The analyst highlights that escalating fuel prices are influencing headline Consumer Price Index (CPI) trends, thereby potentially limiting the scope for central banks to implement rate cuts.

According to Blanch, the oil outlook is currently dominated by four forces:

  • Persistently low inventories: Across the board, the oil complex is experiencing significantly low inventory levels, a situation that is contributing to upward pressure on prices.
  • OPEC+ production decisions: The output cuts enforced by OPEC+ countries are serving to tighten supply in the global market.
  • Geopolitical flashpoints: Escalating tensions in key regions, notably involving Iran, Russia, and Venezuela, not only threaten supply chains but also, paradoxically, stimulate oil demand through longer trade routes and reduced refining capacities due to infrastructure attacks.
  • Economic growth: Robust growth figures are painting a picture of stronger-than-anticipated demand, particularly for the upcoming summer driving season.

Oil closed at a smidge over $85 bbl this afternoon and spring is young yet.

There are additional things that could go desperately wrong which would adversely impact our energy posture, over which no mortal man has one iota of control…not that anyone in the Biden administration gives a tinker’s damn of concern about.

They’ll just work it into another Green energy bailout bill as a “climate change disaster.”

When things are miserable this summer, remember evil Chuck Schumer chortling and gloating as he shut down Trump’s plan for a $24 bbl top-off.

…Schumer, D-N.Y., wrote in a March 25 letter to his colleagues that Democrats had “eliminated $3 billion bailout for big oil” from the final bill. This funding could be included in future legislation.

In requesting the funding, the Trump administration indicated it wants to take advantage of historically low oil prices while sending a strong economic signal to the industry, said U.S. Energy Secretary Dan Brouillette on a March 19 call with reporters. The U.S. Department of Energy recently announced a solicitation to purchase an initial 30 million barrels of U.S. crude oil.

Some funny guys, those Democrats.

They get more hilarious by the minute.



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