The United States’ Strategic Petroleum Reserve (SPR) now has only 453.1 million barrels in its inventory, following another significant drop in the past week that puts the emergency reserve at a low not seen in three and a half decades, Reuters reports, citing the Department of Energy. In the week ending August 19th, the SPR saw another draw of 8.1 million barrels, following smaller releases in the weeks leading up to that. In March, the Biden administration authorized the release of 1 million bpd from the SPR over a period of six months in a bid to lower oil prices and to potentially boost domestic production through contracts with companies to purchase future oil at fixed prices. The SPR releases are a response to the disruption of global oil markets caused by Russia’s invasion of Ukraine and subsequent Western sanctions that have led to soaring oil and gas prices. The final plan called for a total release of 180 million barrels of crude from the SPR to counter the inexorable increase in oil prices amid a tight market. In addition to the lowest inventory levels in the SPR since 1985, last Wednesday, the Energy Information Administration (EIA) estimated that crude oil inventories (excluding the SPR) had fallen by 7.1 million barrels. For that week, U.S. crude oil inventories, excluding those in the SPR, were at only 425 million barrels, or 6% below the five year average. The largest sale from the SPR was announced on August 11, when the Department of Energy said that nine companies would buy 20 million barrels. According to the Institute of Energy Research, the SPR is expected to shrink to a 40-year low by the end of October, with inventories then at 358 million barrels, compared to 621 million barrels a year ago. NN: In March when your ha ha ha ha president ordered the release of oil from the emergency reserve US oil was trading at $85 a barrel. During the release oil surged to $120 a barrel and is currently trading at $100 a barrel. I would say its been a colossal fuck up. Please note most of the oil was bought by US certified bidders at below the spot price and sold to Europe…. Most of the oil did not make it into the US oil system. And since the release US oil inventories have FALLEN! ALL I CAN SAY IS WELL DONE ASSHOLES!
U.S. crude in SPR hits lowest level since January 1985
HOUSTON, Aug 22 (Reuters) – U.S. crude inventory in the Strategic Petroleum Reserve (SPR) fell by 8.1 million barrels in the latest week to the lowest level in more than 35 years, according to data from the Department of Energy. Stockpiles in the Strategic Petroleum Reserve (SPR) fell to 453.1 million barrels in the week to Aug. 19, according to the data. The 8.1 million-barrel draw was the largest since the end of April and brought inventory to the lowest level since January 1985. The large draw comes after a few weeks of smaller releases. An Energy Department spokesperson said the use of an additive to cool crude for transportation had slowed deliveries in recent weeks, adding that deliveries for August are being released according to schedule. President Joe Biden in March set a plan to release 1 million barrels per day over six months from the SPR to tackle high fuel prices, which have been contributing to soaring inflation. The SPR stocks have also declined due to sales from congressional mandates and Biden’s price initiative. The oil is sold to accredited oil companies via online auctions, and prices are set using a five-day average bracketing the date of delivery. The Energy Department has proposed to replenish the SPR by allowing it to enter contracts to purchase oil in future years at fixed, preset prices. The administration said it believes the plan would help boost domestic oil production.