March 17, 2023 08:22 GMT
US Administration Reluctant to Fill SPR Despite Sub $70/bbl WTI
The Biden Administration will not immediately replenish the SPR despite collapsing prices now in the range they previously said would trigger purchases – around the low $70/bbl mark.
- “We’ve seen a decline in oil prices, we’re seeing some crunch there,” Amos Hochstein, a top Biden official said.
- “We should take a deep breath and wait and see how this crisis right now impacts the oil and gas industry, production and what the profile is. So far prices have come down. We’re watching it very closely, we’ll continue to watch it over the next several days.” He added.
- President Joe Biden “is still committed to replenishing the SPR after extraordinary draws last year,” Hochstein said. “Nothing happens overnight. You have to decide that this is the right environment, so therefore you wait to see where the prices are going to be landing.”
- $70/bbl was expected to act as somewhat of a floor for WTI as the US were expected to step in and make significant SPR refill purchases.