Biden announces U.S. release oil from SPR to help lower gas prices

R

RedSun

On the news release, CL price jumps $1.86 to $78.65. This is like a slap on the face of his announcement.

The total SPR release is 35+15=50MM. The US daily oil consumption is about 18MM per day. So the total SPR release is less than 3 days of US oil consumption. The bigger question is when US has to fill the oil back.

Winter actually is typically an oil re-stocking period. US is more of a summer driving energy country, very different from the developing countries like China and India. When we release oil during stocking season, it puts on more strain to summer energy consumption. This is why we see summer CL prices jumped today.

This is another instance of US mis-handling of the oil situation. ESG and clean energy is a central scheme of Biden administration. The "dirty" Oil has been blamed for damaging our environment and poisoning our children. This is why OPEC+ would not listen to Biden's pleas to pump more oil. They do not want another oil bust when oil consumption drops in the next several decades.

Biden did the SPR release with the background of his approval rating tumbling to the lowest after he came to office.

https://www.cbsnews.com/news/oil-biden-strategic-petroleum-reserve-release/
 
USA isn't acting alone.

China, India, Japan the Republic of Korea and the United Kingdom will also tap their reserves in a coordinated effort to drive down prices

Smart move.
 
Yes. But the total SPR release globally is only 50 MM BBL. This is only one day global oil consumption. One drop oil into the sand.

China has been drawing down its own SPR for sometime. So it does not even have much more to draw.

If OPEC+ stops to raise more oil output, when will those nations fill back the oil storage? It is like killing a hen for the meat before the holiday. Biden did this for political reason only. But he just won't buy enough time before the US 2022 mid-term election. This actually damages the mid-term since summer oil price will be higher than we had yesterday.
 
Joe, shut down more pipelines boy!
Give Hunter my regards!
chop chop!
delete oekd.jpg
china smog.jpg
 
speedo said:
Band-Aid on a fracture.
More...
%%
That's fairly accurate.
BUT with 11 months to elections, easy for longer uptrends to downtrend........
Longer term oil+ gas charts, monthly candles, going down\
weekly charts going down\
parabolic weekly charts going down again .
Its not all bad news for bulls for sure; silver + oil has had liquidation only trades, before +the sharper bulls simply sold rather than get slaughtered. I sold my oil ETF some time ago.
NOT a prediction, not insured by any federal agency.
Daily texas tea did go up but even that down\ on monthly candlechart.
I'm not sure local gasoline market downticking means much, i live in a real dealer/consumer cheap gas market\LOL:D:D
 
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