President Joe Biden has enough oil supply in the Strategic Petroleum Reserve (SPR) to address any supply concerns, according to Amos Hochstein, the president’s energy adviser. Hochstein also noted that the president will use crude oil from the SPR if necessary.
Concerns about fuel prices
The debate over the possibility of using SPR to reduce retail fuel prices has resurfaced. Should the conflict between Israel and Hamas escalate and oil prices rise, this could affect gasoline and diesel prices in the United States. The Biden administration has been monitoring the situation closely to evaluate necessary measures.
Reduction of crude oil reserves
Since President Biden took office, US crude oil reserves have fallen from 638 million barrels to just 347 million barrels in the summer of 2023. This reduction is due to the administration’s effort to reduce prices of gasoline for consumers, releasing more than 180 million barrels of reserves.
Restriction on oil buybacks
The Biden administration has stopped buying back oil for the SPR because the price of oil has been above the $79 per barrel the government wants to pay. This has led to several purchase offers of 3 million barrels being cancelled.
Sufficient supply in the SPR
According to Hochstein, the SPR still has enough supply to address any concerns in the economy. Although he will continue to monitor the markets for the time being, the president has shown his willingness to use the SPR to support the US economy if necessary.
Debate on the release of reserves
With rising fuel prices a factor President Biden seeks to avoid in an election year, some see releasing SPR reserves as a likely move. However, this has raised questions about whether there is enough oil in the reserve, due to irregular replenishment efforts by the federal government.
