From Nasdaq:

The Biden administration has been slowly replenishing stocks in the Strategic Petroleum Reserve (SPR). President Biden ordered the release of 180 million barrels from the SRP back in 2022 to calm the market. It helped bring gasoline prices lower and the administration purchased 20.13 million barrels of domestically produced crude to replenish the reserve, so far at an average price of $76.12.

The Department of Energy said that SPR releases in 2022, along with coordinated releases from international partners, reduced gasoline prices by as much as 40 cents per gallon. The government slowly started buying oil to replenish SPR stocks, purchasing 20.13 million barrels of domestically produced crude with an average price of $76.12. They also have recalled nearly 4 million barrels of crude on loan to oil companies, expected to arrive back at the SPR this month, and were issuing a new solicitation for up to 3 million barrels to replenish the reserve further.

The administration sold in 2022 at an average of about $95 per barrel and has repurchased at an average price of $76.12, demonstrating smart trading so far. However, the long-term success of this plan won’t be known until all 180 million barrels have been recovered, with potential impact from geopolitical and domestic changes. Moreover, it is unclear if a new president would seek to replenish the reserve more quickly, impacting prices. On Friday, oil prices were lower, with WTI down 2.3% at $72.22 a barrel.



Read more: Biden The Master Oil Trader Part III? President Refills Emergency Stash As Crude Price Slides