Cheap Oil?

So are you saying any strategic petroleum reserve transaction during the entire year of the election is “right before the election”

Also, what are your thoughts when countries like KSA try to influence election results by increasing or decreasing production before an election?

 

In lieu of eliminating the SPR why not make actions regarding it rule based rather than discretionary?

 

If oil drops to $50 a barrel Putin's war in Ukraine is done and they tuck tail. As John McCain said Russia is a gas station masquerading as a country...there will be no more money to finance his war and since 20% of their gdp comes from oil/gas. Of course Putin could also increase that oil price by using a nuke as a last ditch effort...

 

The dates of those SPR withdrawals this year, please? Also, differentiate between actual sales and loans to petroleum companies that are paid back in oil. I'll hang up and listen.

 

Let’s keep this very simple. What was Biden’s purpose in releasing oil from SPR? What was the compelling national security issue the action was designed to address?

I am opposed to all forms of foreign activity designed to influence our domestic elections, one way or the other. That goes for the oil monarchies manipulating prices; China, Russia, and Iran funding the crazies on both sides; or the Pope telling Catholics how to vote. Unfortunately, I am not aware of anything we can realistic do about foreign influence apart from naming and shaming the countries involved and/or prosecuting foreign agents (yes, including U.S. citizens) whom we catch enabling it.

 

This article, found in 30 seconds, says the last release happened in May of this year and makes no pretense about it being a national security decision.

Biden to release 1 million barrels of gasoline to reduce prices at the pump ahead of July 4

Like I said, if you’re okay with Republicans also using national security tools for domestic political gain, then fine, nothing else to debate on the subject. Personally, I’m not. This is the kind of executive authority I want guardrailed to mitigate against abuse. I feel the same way about the abuse of pardons.

 

Well they refused to do it when oil as near $20/brl so it shouldn’t be a shock if they didn’t do it when it was below $50.
As I understand it the shale guys can still produce for a time under $40 as it costs more to shit down and restart than taking a loss for a while.

 

I am just confused by your terminology of “before the election”. This shows they were actually purchasing in July of 2024

https://www.energy.gov/articles/bid...4-million-barrels-strategic-petroleum-reserve

I think some of the reserve releases related to supply disruptions due to Ukraine war at the same time as widespread post covid inflation. One can debate if that was a good use but it seems far from nefarious.

This particular small release in the NE was mandated by Congress.

Biden releasing 1 million barrels of gasoline from Northeast reserve

 

Nefarious is not a word I would use, no. I just think temporarily lowering oil prices is not the purpose of the SPR, and Presidents (all of them) should be more restricted in their authority.

 

Yep, they were busy refilling the reserve and making millions of dollars.

 

Couldn't disagree more. Selling part of our reserves to stabilize oil prices at the beginning of the Ukraine war was overwhelmingly in the US' best interest and that's not including the money Biden made for us.

 

Prices expected to tumble some more next year. Might as well thank Biden now. Experts are expecting a 1 million barrel per day surplus in the global market next year, mostly because China's economy is weakening dramatically and they are not constructing buildings like they used to. Where will Russia get their war money from?

China's weak economy and record US production will lead to a surplus of one million barrels of oil a day next year, IEA says

 

Why would those things be attributed to Biden?

 

Uhh… probably because oil round tripped under Biden. The issues of ‘22 were already addressed. It’s wild to me how many people are stuck in ‘22 on inflation.

Now if we see oil dip into the 50’s that would probably have more to do with the Saudi’s. BTW cheap oil has mixed economic ramifications here. It’s good for most of the “economy”, not so good for TX, LA, Ok, AK, and also bad for the environment because it sends people into bad habits. But in terms of Russia’s ambitions it’s very bad for them, whatever the Saudi motive behind it.