• 3 minutes In a Nutshell...
  • 5 minutes CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 7 minutes Australian renewables zone attracts 27 GW of solar, wind, battery proposals
  • 9 minutes Why Oil could hit $100
  • 3 hours COVID is real now
  • 21 hours Is Biden the poster child for White Privilege ? DNC needs to replace him now before it's too late.
  • 10 hours The Boris Yeltsin of America
  • 6 hours Where is Alberta, Canada headed?
  • 20 hours Why Putin is popular in Russia
  • 1 min Is The Three Gorges Dam on the Brink of Collapse?
  • 51 mins Joe Biden offers advice to correct the public health
  • 6 hours There Has Been No Trump Manufacturing Boom Even Before Covid
  • 16 hours Fauci: "USA will soon have 100K new cases per day". Trump re(p)-lies: "The problem has been fixed"

Breaking News:

Oil Climbs On Major Crude Draw

The Largest Oil Inventory Increase In History

The Largest Oil Inventory Increase In History

Oil inventories generally increase in…

OPEC+ News Is Holding Oil Prices Back

OPEC+ News Is Holding Oil Prices Back

Expectations of an easing of…

Potential Sale of Oil from SPR Gaining Steam

Bloomberg News reported on March 26 that the possibility of the U.S. releasing emergency stockpiles of oil in order to punish Russia is gaining a bit of steam in Washington. George Soros was the latest to support the idea that selling oil from the U.S. strategic petroleum reserve would immediately lower global oil prices, cutting into the predominant source of revenue for Russia. According to Philip Verleger, an energy consultant and former member of the Ford and Carter administrations, the U.S. could lower oil prices by as much as $12 per barrel if it sold just 500,000 barrels per day from the reserve.

The U.S. created the SPR as a response to the oil embargo in 1973. It stores 696 million barrels of oil in salt caverns in Texas and Louisiana. Other members of the International Energy Agency are also supposed to hold around 90 days’ supply of oil in reserve as well, to be supplied in the event of an outage.

Related Article: Markets in Turmoil on Ukrainian Crisis

The Obama administration announced earlier this month that it would sell 5 million barrels of oil in a test sale in order to ensure the distribution system worked properly. Many saw that move as a warning to Russia that more could be coming. Secretary of Energy Ernest Moniz has so far dismissed the notion that the U.S. will sell large volumes of oil from the reserve.

While more hawkish forces may be pushing for an SPR release, there will be considerable pressure from the other direction not to make such a move. The objective of lowering oil prices would not only hurt Russia, but it would also cut into the business operations of drillers in America’s oil patch. Instead of an SPR release, the U.S. oil industry is pushing hard for opening up for oil exports as a geopolitical solution to the Ukrainian crisis.

By Charles Kennedy of OIlprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News