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Biden Admin May Begin Refilling SPR At USD80p/b

OIL

Oil prices have spiked after a tweet from Bloomberg journalist Jennifer Jacobs suggesting that the US may begin refilling the US Strategic Petroleum Reserve (SPR) when crude oil prices fall below USD$80 a barrel.

  • WTI spiked from USD$85.36 - USD$87.22 upon the news.
  • Yesterday, the US Department of Energy (DOE) confirmed that stocks within the SPR had dropped to 431 million barrels, the lowest level since October 1984 as the Biden Administration engages in a gradual release of reserve of 180 million barrels of crude from the SPR to cool energy prices.
  • Energy Secretary Jennifer Granholm told Reuters yesterday that the administration is weighing up further releases beyond the planned 180 million barrels but the DOE walked back the comments saying the White House has no plans for further releases.
  • Reuters: "The DOE has proposed to replenish the SPR by allowing it to enter contracts to purchase oil in future years at fixed, preset prices. The administration said it believes the plan would help boost domestic oil production."

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