The US government has pocketed almost $4 billion from selling oil this year, the Wall Street Journal reported. In a bid to lower gas prices, President Joe Biden authorized releases from the Strategic Petroleum Reserve in March. Since then, the US has sold 180 million barrels of crude at an average price of $96.25 a barrel. The US government has pocketed a roughly $4 billion windfall from sales of crude this year out of the Strategic Petroleum Reserve. In the week ending December 9, the US released about 4.7 million barrels of crude, and the Energy Department has said it will conclude deliveries this month. Since President Joe Biden tapped into the reserves in March — just after Russia's invasion of Ukraine — the US has sold 180 million barrels of crude at an average price of $96.25 per barrel, per The Wall Street Journal. Brent crude, the international benchmark, is hovering around $80 a barrel, as of Monday. West Texas Intermediate is trading at roughly $75 a barrel. The White House has said that it plans to start buying oil for the SPR when US crude price hit $70-$75 per barrel. Last week, the Energy Department solicited bids for 3 million barrels to be delivered in February to its Texas storage facility. Yet officials also said that the administration isn't rushing to completely top off crude reserves, which are now at about 382 million barrels, because current levels remain high enough to endure any supply shocks. A senior administration official told the Journal that the Energy Department has the latitude to wait for lower market prices before it begins buying up oil to refill the SPR, and said that the process could take years. At its peak in 2009, the Strategic Petroleum Reserves held 727 million barrels, data from the Energy Department shows. At the start of this year, those were at about 593 million barrels.
Piezoe, the king of lies and disinformation is out with another bullshit post. It really doesnt add when you consider they sent $68 billion to Ukraine. Simple math shows Biden is down $64 billion on this one alone. #ThisThreadIsBogus
True P/L won't be known until they get it refilled. Some traders/investors (Josh Young, Kuppy, etc...) see triple digits coming 2023. https://twitter.com/Josh_Young_1 https://twitter.com/hkuppy
It doesn't matter. A trade is a trade. If the globe is in a recession Biden didn't cause it, nor did his use of the SPR. The Dude went short oil high, and now he's covering. That's all that matters with respect to the trade.
Another red herring nonquitter. What is with people here at ET? Elitetrader. It was a trade. Sold high, bought low. SPR is short oil and currently covering at prices below where the sales were made.
There has been no mentioning of buying back oil yet, to refill the SPR. What the articles are referring to is the average price they bought oil for over the years, which I am guessing is around 55 bux per bbl. What I am confused about is this whole "selling" bit. Who are they selling it to? When the media says Biden "released" the reserves, he didn't mean giving it to oil companies, but selling it to them? At 96 bux per barrel when the spot was lower? What company would make such a losing trade? I don't understand this whole SPR filling and releasing thing.