US Holds Adequate Oil Supply Reserves to Address Any Supply Concerns Says Biden Adviser.
Despite recent efforts to replenish the SPR, it remains at near 40-year lows, largely due to the significant drawdown initiated by President Biden following Russia’s invasion of Ukraine in 2022, which amounted to the largest-ever sale of 180 million barrels from the reserve. As crude oil prices have surpassed the administration’s target purchase price of $79 per barrel, the Biden administration ceased acquiring additional oil for the reserve.
“We have been replenishing into the SPR for the last several months. I think we have sufficient supply in the SPR to address any kind of concern in the economy if we need it,” stated Hochstein during the Milken Institute Global Conference. “For now, I think we’ll continue to monitor markets, and if we need to use the SPR, the president has shown a willingness to use it to support the U.S. economy.”
Related Posts
In response to escalating oil prices, the Energy Department recently terminated the purchase of approximately 3 million barrels of crude for the SPR. Presently, the SPR holds approximately 367 million barrels, a substantial decrease from its peak of nearly 727 million barrels in 2009.
