Oil Buyback Replenishing SPR
RJS; Focus on Fracking
Oil Prices Top $111 As Biden’s SPR Buyback Plan Leaks —
The Biden Administration will purchase 60 million barrels of crude in Q3 (Yahoo) in an effort to replace volumes in the U.S. strategic petroleum for the first time in nearly 20 years, CNN reports, after authorizing a record release over six months.
Citing an unnamed Energy Department official, CNN said what is referred to as a “long-term buyback plan” for oil would be announced later on Thursday. Delivery of those first 60 million barrels, according to CNN, would be paid for with revenue received from sales of emergency oil, while the time frame is not specific beyond “future years”.
Oil jumped to $111.5 per barrel for Brent–the highest price since late March – and over $108 for WTI on news of the buyback plan, along with results of an OPEC+ meeting earlier today in which the cartel refrained from increasing output quotes beyond 423,000 bpd for June. The full process for replenishing the SPR will take years. Bloomberg cited UBS Group commodity analyst Giovanni Staunovo as saying the market is now pricing in what amounts to U.S. plans to buy when the market is tight and inventories and spare capacity are low. On March 31st, U.S. President Joe Biden authorized the release of 1 million barrels of oil from the country’s strategic reserves per day for six months in a bid to bring down soaring oil prices as a result of Russia’s invasion of Ukraine.
So the leak is enabling the US to obtain higher prices while selling…interesting.
Be a bit more specific. I am not understanding your comment.
oh, i get it, run, his is the most plausible explanation i’ve seen; i got snookered, and so did the markets….this is the week that they planned to start selling a million barrels per day from the SPR, and oil prices were lower expecting that…so someone “leaks” to CNN that they’re going to eventually buy back a third of that (which was always part of the plan anyhow) and suddenly they get $3 more a barrel for what they’re selling now…
like i said when i sent you that article, without an explanation like that, this story looks like a parody…
but now we see that the front-month RBOB (gasoline) contract rose to a record-high settlement of $3.7590 / gallon today, following the release of the (apparently) strong employment report…that’s the price for 42,000 gallons, i have no idea what that works out to at the pump…
No one else with agency is saying 3rd quarter which caught my eye, and which is why I referenced Yahoo for that quote. It caused me to think about it and look around for more data. I can not find anymore comments about 3rd quarter. CNN said unspecified future years. Yahoo or whoever was the bait and they took it.
The gain is used to pay off debt, national debt before midterms. Congress made it as such.
Nothing wrong with what you sent me or said and you did warn.
Fraud owes me an answer.