Bloomberg: Biden May Buy Oil Just Below $80; Democrats Stymied Trump at $24
(Bloomberg) -- The Biden administration is considering replenishing the Strategic Petroleum Reserve when oil dips below $80 a barrel, just two years after Democrats blocked former President Donald Trump from filling the reserve at a fraction of that price.
Biden in March ordered the release of a record 180 million barrels of oil from the reserve in an attempt to stem supply shortages and the rapid rise of gasoline prices in the US following Russia’s invasion of Ukraine. The administration now is looking to protect US oil-production growth and prevent crude prices from plummeting, according to people familiar with the matter.
Trump in March of 2020 was looking to stabilize the oil industry after Covid-19 hit in 2020 and crushed global petroleum demand. With oil at the time priced at about $24 a barrel, Republicans proposed spending $3 billion to fill up the reserve. But the idea became a political football in larger negotiations on trillions in coronavirus relief, with Senate Democratic Leader Chuck Schumer proclaiming that his party had blocked a “bailout for big oil.”
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Update: Biden Admin Reportedly Ready To Refill Strategic Petroleum Reserve At $80/BBL (Zero Hedge)
Update #2: Oil prices could find a floor near $80 per barrel as Biden administration considers refilling the Strategic Petroleum Reserve (Business Insider)
WNU Editor: Zero Hedge sums it up best .... This may well be the dumbest thing to ever come out of this administration.