Posted on 12/16/2022 11:46:13 AM PST by ChicagoConservative27
The Department of Energy will purchase 3 million barrels of oil to replace withdrawals from the Strategic Petroleum Reserve (SPR) amid high energy prices, it announced Friday.
The Biden administration presented the purchase, which follows a bidding process that began in October, as an opportunity to buy the oil at a fixed price and repurchase it for less than the average of $96 per barrel it sold for.
“Relative to conventional purchase contracts that expose producers to volatile crude prices, this new approach, when used at scale, can give producers the assurance to make investments today, knowing that the price they receive when they sell to the SPR will be locked in place,” the Energy Department said in a statement. “Today’s notice will pilot this new approach by starting with a purchase of up to 3 million barrels of crude oil.”
After oil prices soared earlier this year following Russia’s invasion of Ukraine, the Biden administration withdrew a record 180 million barrels from the SPR. The administration announced a plan in May to solicit bids to buy back about one-third of the barrels withdrawn.
(Excerpt) Read more at thehill.com ...
So now we know what the cap is all about...it still hadn’t happened as of yesterday...we’ll see...And I’m just guessing at this point.
Trump tried it at ridiculously low prices and was hooted and howled at by Dems.
why 1/3....buy 3/3...no business taking it out in the first place...
“Buy high, sell low” is supposed to be sarcasm.
Sell low and buy high.
Has to be Democrats.
These are low prices... for the Biden regime.
I think that’s enough oil to run the country for about an hour.
“oil prices soared earlier this year following Russia’s invasion of Ukraine..”
Actually right after Biden started implementing his energy policies. Putin was just timed well to blame.
More federal money laundering.
The last of the sold oil is “delivered” next week. It will be interesting how a shift from selling a million barrels a week to buying a million a week will have on the market.
If production hasn’t increased….a two million barrel impact on supply won’t be “massive” but the demand line is not linear. Life will go on.
Sell low, buy high.
That’s about 1% of what he’s withdrawn from the SPR.
It was utterly irresponsible for Biden to have released the oil, but it did actually work out. Selling it at $96 and buying it back at ~$71 is a $25/barrel profit. Not that the government should be rolling the dice like that. He got lucky. Glad it’s being replenished.
I must have missed that finance class in college.
Since the US uses about 18.7M barrels of oil/day, this will last a little less than 4 hours.
Wanna bet the delivery system (ship, whatever) will blow up and burn. What away to remove America’s dependency on oil . . . except they need it to produce electricity, unless they decide to depend on wind. That out to work, even cull out a bunch of eagles . . . another racist symbol the left will be rid of.
The government doesn’t exist to make a “profit.” Where is that “profit” going?
And honestly, I don’t like the government controlling the price of anything.
Not directed at YOU, Craig…but a lot of the folks praising this haven’t really thought about the implications of the Federal Government controlling a commodity, selling short, and then taxing the crap out of any private citizen who followed their lead.
There is so much wrong with this entire picture….
That’s called “making money on a trade”
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