The Strategic Petroleum Reserve (SPR) remains at a very low level and the Biden administration passed on the prospect of purchasing oil to replenish the reserve because the prices are too high.
Ahead of the 2022 midterm election cycle, President Joe Biden released millions of barrels of oil from the SPR to artificially lower the price of gas at the pumps. According to Bloomberg News, Biden released the oil to lower the price at the pumps because the soaring gas prices were a political nightmare for Democrats. Recently, the Department of Energy (DOE) passed on the opportunity to purchase upwards of 3 million barrels of oil in an attempt to replenish the dwindling supply because the prices still remain too high.
On Tuesday, the price per barrel of oil reached $85, a level not seen since last October 2023. The Biden administration has a target price of $79 per barrel at which point they would purchase in order to refill the reserves.
The DOE claims “keeping the taxpayer’s interest at the forefront” is the reason they declined to purchase the oil reported Bloomberg News. The DOE did purchase 2.8 million barrels in early March for $81 each, at a higher price than desired.
According to data released from the U.S. Energy Information Administration, the total amount of oil the SPR currently holds is 363 million barrels. Since Biden took office, the SPR is down almost 300 million barrels and remains at the lowest levels since 1983.
When Biden released the oil from the SPR, some went to Americans but millions of barrels were sold to China.
The DOE spokesperson tried to ease the concerns of Americans issuing a statement. “We announced and have executed on a replenishment strategy aimed at maintaining the readiness of the world’s largest Strategic Petroleum Reserve and delivering a good deal for American taxpayers.”
Trump refilled the SPR during the coronavirus pandemic in 2020 for $25 per barrel.