Dumbest Administration Ever? Biden Admin Reportedly Ready To Refill Strategic Petroleum Reserve At $80/BBL

BW Lion

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Apr 9, 2020
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A day after we reported that the Biden administration withdrew a record amount from the US Strategic Petroleum Reserve plunging it to its lowest since 1982, Bloomberg reports that, according to people familiar with the matter, the US may begin refilling its emergency oil reserve when crude prices fall to around $80 a barrel.



The sources said that Biden administration officials are weighing the timing of such a move, with an eye toward protecting US oil-production growth and preventing crude prices from plummeting (in an effort to reassure oil producers that the administration won’t let prices collapse).

The reaction in WTI was immediate with the front-month bid (well above $80)...



“It may not be a catalyst for $100 crude but does offer a buffer to the downside risk that the market is worrying about,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.

And as we have noted previously, while gas prices have dropped for 90 straight days now, they are already decoupled to the downside (thanks to the SPR releases) relative to crude and wholesale prices.



But, as we noted yesterday, this is likely to be problem for after the Midterms - so really, Biden doesn't care if it raises gas prices, it will be Republican House's problem?

So - to sum up - President Biden is fighting inflation by pre-announcing there is now a hard floor on oil prices, ensuring they never drop below it and gasoline surges now that OPEC has all the leverage.



Trade accordingly.

 

bdgan

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May 29, 2008
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A day after we reported that the Biden administration withdrew a record amount from the US Strategic Petroleum Reserve plunging it to its lowest since 1982, Bloomberg reports that, according to people familiar with the matter, the US may begin refilling its emergency oil reserve when crude prices fall to around $80 a barrel.



The sources said that Biden administration officials are weighing the timing of such a move, with an eye toward protecting US oil-production growth and preventing crude prices from plummeting (in an effort to reassure oil producers that the administration won’t let prices collapse).

The reaction in WTI was immediate with the front-month bid (well above $80)...



“It may not be a catalyst for $100 crude but does offer a buffer to the downside risk that the market is worrying about,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.

And as we have noted previously, while gas prices have dropped for 90 straight days now, they are already decoupled to the downside (thanks to the SPR releases) relative to crude and wholesale prices.



But, as we noted yesterday, this is likely to be problem for after the Midterms - so really, Biden doesn't care if it raises gas prices, it will be Republican House's problem?

So - to sum up - President Biden is fighting inflation by pre-announcing there is now a hard floor on oil prices, ensuring they never drop below it and gasoline surges now that OPEC has all the leverage.



Trade accordingly.

Thus wasn't about national security or fiscal responsibility. It was just another way to buy votes until the election.
 

LafayetteBear

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Dec 1, 2009
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Has one drop of the oil he's taken out seen the bottom of an American gas tank?
Would one drop of oil taken from the Keystone Pipeline have seen the bottom of an American gas tank? Rhetorical question, Farley. The answer is no.
 

BW Lion

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Apr 9, 2020
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Would one drop of oil taken from the Keystone Pipeline have seen the bottom of an American gas tank? Rhetorical question, Farley. The answer is no.
Your posit should have been written in present tense because the Keystone pipeline actually continues on to the Wood River Refinery located in Roxana, IL.

So yes, the Keystone pipeline has actually placed multiple drops of gasoline in the tanks of Americans.

Oh Danny,
You’ll never be mistaken for a Mensa member. 🙄🙄
 

PaoliLion

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Nov 2, 2003
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A day after we reported that the Biden administration withdrew a record amount from the US Strategic Petroleum Reserve plunging it to its lowest since 1982, Bloomberg reports that, according to people familiar with the matter, the US may begin refilling its emergency oil reserve when crude prices fall to around $80 a barrel.



The sources said that Biden administration officials are weighing the timing of such a move, with an eye toward protecting US oil-production growth and preventing crude prices from plummeting (in an effort to reassure oil producers that the administration won’t let prices collapse).

The reaction in WTI was immediate with the front-month bid (well above $80)...



“It may not be a catalyst for $100 crude but does offer a buffer to the downside risk that the market is worrying about,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.

And as we have noted previously, while gas prices have dropped for 90 straight days now, they are already decoupled to the downside (thanks to the SPR releases) relative to crude and wholesale prices.



But, as we noted yesterday, this is likely to be problem for after the Midterms - so really, Biden doesn't care if it raises gas prices, it will be Republican House's problem?

So - to sum up - President Biden is fighting inflation by pre-announcing there is now a hard floor on oil prices, ensuring they never drop below it and gasoline surges now that OPEC has all the leverage.



Trade accordingly.


I’d be fine if they told the US oil companies that they will give it to the government cost to show their patriotism and deference to the American consumer. We’re the dumbest major oil producer on the face of this earth.
 

BW Lion

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Apr 9, 2020
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I’d be fine if they told the US oil companies that they will give it to the government cost to show their patriotism and deference to the American consumer. We’re the dumbest major oil producer on the face of this earth.
Could you please edit your post to make it even semi literate? What you wrote is complete gibberish
 

PaoliLion

Well-Known Member
Nov 2, 2003
12,786
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Why would any enterprise give their product to the US Govt “at cost” ?

So illogical on so many levels.

Why would we continue to let oil companies, folks that pump oil from federal and state lands, gouge the shit out of American consumers???
 

Bob2022

Well-Known Member
Mar 15, 2022
130
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A day after we reported that the Biden administration withdrew a record amount from the US Strategic Petroleum Reserve plunging it to its lowest since 1982, Bloomberg reports that, according to people familiar with the matter, the US may begin refilling its emergency oil reserve when crude prices fall to around $80 a barrel.



The sources said that Biden administration officials are weighing the timing of such a move, with an eye toward protecting US oil-production growth and preventing crude prices from plummeting (in an effort to reassure oil producers that the administration won’t let prices collapse).

The reaction in WTI was immediate with the front-month bid (well above $80)...



“It may not be a catalyst for $100 crude but does offer a buffer to the downside risk that the market is worrying about,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.

And as we have noted previously, while gas prices have dropped for 90 straight days now, they are already decoupled to the downside (thanks to the SPR releases) relative to crude and wholesale prices.



But, as we noted yesterday, this is likely to be problem for after the Midterms - so really, Biden doesn't care if it raises gas prices, it will be Republican House's problem?

So - to sum up - President Biden is fighting inflation by pre-announcing there is now a hard floor on oil prices, ensuring they never drop below it and gasoline surges now that OPEC has all the leverage.



Trade accordingly.

This is not the dumbest administration ever. This administration is actually a rousing success to the socialists who have taken over the former democrat party. This is Build Back Socialist.
 

bdgan

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May 29, 2008
61,977
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Why would we continue to let oil companies, folks that pump oil from federal and state lands, gouge the shit out of American consumers???
Last qtr Exxon's profits were 16% of sales which is very good. Cut that in half and they could theoretically pass an 8% price cut to consumers. Do you really think 8% is the issue?

Besides, gas taxes are up to 20% of gas prices. And the government doesn't "allow" oil companies to drill on public lands. Oil companies pay an 18% royalty to the government. Why are you OK with state and local governments gouging the shit out of American consumers?
 
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