Strategic Petroleum Reserve

Chart of the Day: Biden Releases Strategic Petroleum Reserve – Markets React

President Joe Biden is releasing 50 million barrels (about 8% of the total) of Oil from the nation’s emergency stockpile to lower energy costs amid a spike in gas prices and soaring inflation, the White House announced. This was in tandem with releases from other major consuming nations.

The Strategic Petroleum Reserve (SPR) is a US Government complex of four sites with deep underground storage caverns created in salt domes along the Texas and Louisiana Gulf Coasts. See here the current inventory.

See here the announcement on CNBC below.

For context, the globe consumes 100 million barrels of Oil PER DAY. The US uses about 20 million barrels of oil PER DAY. So this SPR release is a mere drop in the barrel, though now the SPR is now the lowest it has been since 2003. See below the historical view of the SPR – see more here.

 

 

For the most part, this SPR release was telegraphed into the global markets already. Goldman for one: “A Biden SPR Release Is Now Fully Priced In And Will Send Oil Price Even Higher In 2022.” This was the traditional – buy on the rumor and sells on the fact, though in the inverse.

 

USOIL_2021-11-23_21

 

From a technical analysis perspective, Oil (WTI) has already broken resistance at the $78 level. After a minor test of this break-point, it is on its way to the old highs at $110. After backing off the resistance at the $110 level, and if the inflation story continues, a break to new all-time highs could occur. After this, the sky could be the limit.

This feeble attempt by the Biden administration to control Oil prices is failing. Higher Oil prices will foster even more inflation as it bleeds into all aspects of the economy. The dirty not-so-secret is that the Biden ilk wants higher Oil prices to justify their climate change initiatives – and the need for his never-ending stimulus programs – something that has been in the works for a long time.

What could go wrong?

The Right Wire Report does not provide investment advice. This post is for information only and is not a solicitation for you to buy or sell any financial asset.

See more #chartoftheday posts.

If you found this article informative, please consider a small donation to our coffee cup to help support Conservative Journalism – or spread the word. Thank you.

 RWR original article syndication source.

Share this:

What do you think?

One Comment

Leave a Reply
  1. Am I understanding this right, 50 million barrels will last 2.5 days? What’s the point? It’s a calculated political move that will likely have no benefit to Americans. Biden is a douche bag.

Leave a Reply

Your email address will not be published. Required fields are marked *

Written by Tom Williams

Born down on the farm in America's Midwest, my early life was spent climbing the ladder via a long career in information technology. Starting as a technician, and after earning a degree going to night school, I eventually found a place working at ATT Bell Laboratories as a software engineer.

Later moving into management and then a long stint in a major management consulting firm working with major banking, telecommunications, and retail companies. Working in various states in America, I also spent considerable time living and working in several European countries - currently expat in France. As a side career, I was heavily involved in real estate development and an avid futures trader. This experience can give one a unique view of the world.

The storm clouds of dark change are near. Today America is at a crossroads. Will it maintain its prowess as a national leader in the free modern advancing world, or will it backtrack in the abyss of the envy identity politics of tyrannical socialism, and the loss of individual freedoms. The 2020 election may have decided this. Join the Right Wire Report team and make a stand.

Hillary Clinton: Those Who Fear ‘Civil Rights and Human Rights’ Are ‘Behind Trump’

The China market is lucrative for the sports business, but at what cost?