Millions were of oil that was taken out of the Strategic Petroleum Reserve last month by Joe Biden and sent to countries around the world, including China.
Biden ordered the release of 50 million barrels of oil from Strategic Petroleum Reserve in November, 30 million barrels on March 1 and 180 million barrels on March 31, saying the “historic” actions would ease the pressure faced at pumps. The Strategic Petroleum Reserve will continue to release one million barrels a day through October, even as the Strategic Petroleum Reserve has fallen to its lowest level since 1986, according to Reuters. U.S. crude inventories are at their lowest since 2004, according to the report.
These releases will place more than 1 million barrels each day on the US market over the next 6 months and help to address supply disruptions due to Putin’s continued invasion of Ukraine. According to Reuters, millions of barrels were sent to China and other countries. (RELATED: Is Biden’s Mass Release From The Strategic Oil Reserves Even Legal)
FILE PHOTO: The Chinese national flag is seen in Beijing, China April 29, 2020. REUTERS/Thomas Peter/File Photo
Cargoes of crude oil have been shipped to the Netherlands, a Reliance refinery in India, and China, Reuters reported, citing an industry source. China and India have steadily purchased U.S. sour crude oil produced in the Gulf of Mexico, Bloomberg previously reported.
Matt Smith, a leading oil analyst at Kpler told Reuters the oil’s release is not having its intended effect.
“Inflation and gasoline prices could have been higher if the Strategic Petroleum Reserve Releases hadn’t occurred, however, Smith said that the oil isn’t having the expected effect.
gasoline and oil prices increased despite Strategic Reserve releases. Cathy McMorris Rodgers, a ranking member of House Energy and Commerce Committee and Energy Subcommittee Republican Leader Fred Upton asked for answers recently from the Biden Administration over why the Strategic Petroleum Reserves releases are giving our enemies “geopolitical lever
“China increased its crude oil purchases from Russia and the United States in order to boost its reserves, even though oil prices went up and President Biden demanded a coordinated release,” Republican leaders stated. According to reports, China is in negotiations with Russia for additional oil purchases. The United States and E.U. are denying Russian imports. pledged to ban Russian imports.”
“As a result, China may now control the world’s largest stockpile of oil, with total crude inventories estimated at 950 million barrels,” the letter continued.
