The Biden administration reportedly chose not to replenish its Strategic Petroleum Reserve (SPR) on Tuesday, according to Bloomberg News.
The government has decided not to replenish major emergency oil supplies, according to anonymous sources. The reason is that oil prices are currently hovering around $80 a barrel. bloomberg. The SPR remains low after President Joe Biden released about 180 million barrels through 2022 to bring down gasoline prices ahead of the November 2022 midterm elections, with some experts It said it could take “decades” to replenish to peak levels.
” [Department of Energy (DOE)] We continue to work on our SPR replenishment strategy, including direct purchases where we can secure favorable deals for the taxpayer. Returns and exchanges. DOE Deputy Chief of Staff Bridget Bartle said the choice not to replenish the SPR would be coordinated with Congress to cancel the planned sale if the drawdown was unnecessary, according to Bloomberg. (Related article: “Quite Shameful”: Biden administration sells nearly 6 million barrels of strategic oil reserves to China)
Exclusive: Sen. Josh Hawley Calls for Investigation into Biden Administration’s Release of Strategic Oil Reserves to Chinahttps://t.co/mYguXO1bZv
— Daily Caller (@DailyCaller) July 13, 2022
Oil prices have been rising over the summer, with some of the trend attributed to production cuts announced by OPEC+ countries such as Saudi Arabia and Russia.
Biden administration officials have previously said they would consider buying replenishment crude if prices fell to the $67 to $72 a barrel range, according to Bloomberg. Brent crude futures prices closed above $85 on Tuesday. according to Go to Market Watch.
Energy Secretary Jennifer Granholm promised in July that the department would replenish the SPR, but acknowledged that plan may have to wait until Biden is scheduled for a second term. according to to CNN.
Tuesday’s bid was the fourth bid for SPR replenishment, according to Bloomberg.
The DOE did not immediately respond to the Daily Caller News Foundation’s request for comment.
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