What Another 15 Million Barrel Tranche Means for Oil and Gas Prices

 

According to Washington Post, the United States is regarded as the world’s oil barrel of last resort, but what does it mean for hundreds of millions of Americans when depletion becomes an addressable concern?

On October 19, “the Biden administration announces another 15-million-barrel tranche to come out of the Strategic Petroleum Reserve (SPR) for his planned depletion in the United States supply,” said Tim Snyder, Economist for Matador Economics.

Let’s talk indexes – what are the numbers?

With 180 million barrels already being disbursed back in March on top of a 50-million-barrel tranche pulled from the SPR, back in November of last year.

Accumulating a total of 245 million barrels removed from the world’s largest emergency reserve, “represents 40% of the crude oil that President Biden had in the SPR when he took office. That number was 592 million barrels,” Snyder said.

According to Y Charts, the reserves were around 638 million Barrels on January 20, 2021, and down to 592 million barrels of crude oil as of January last year. Current pricing for crude oil per barrel sits at $86.12 with an indicator to fluctuate considering the volatility of the present West Texas Intermediate oil market (YCharts).

A drop in the barrel

The administration is acting against the pump, attempting to lower the price of gasoline for consumers, “but these 15 million barrels are just a drop in the bucket,” Snyder stated.

The United States consumes 8.80 million barrels per day (Energy Information Administration). Snyder anticipates a 50% depletion rate in the 350-million-barrel range.

Forecast for gas – what is the real price?

The U.S. now sits at the lowest levels of crude oil in the SPR since the mid-1980s (The Hills). Some suspect that Saudi Arabia and OPEC’s hold on production cuts was for political gain.

“Sadly, this whole economic mess and the deeply entrenched inflation that is a result of this bad policy was completely avoidable,” Snyder stated.

Key Points:

  • A drop in the bucket – Biden administration announces another 15-million-barrel tranche
  • West Texas Intermediate crude oil is trading at $85.32 per barrel
  • Saudi Arabia and OPEC’s hold on production cuts

Follow us on social media for the latest updates in B2B!

Image

Latest

Listen Carefully, Respond Creatively
April 12, 2024

In this captivating episode of the Fans First series, Jesse Cole, the mastermind behind the Savannah Bananas, delves into the transformative business philosophy of “listen carefully, respond creatively.” This approach has not only skyrocketed the Savannah Bananas to fame but also serves as a universal blueprint for revolutionizing customer service and engagement across all sectors. […]

Read More
Stacey Childress, Senior Advisor at McKinsey and Company, discusses higher ed
Bold Measures are Needed to Improve Investment in Higher Education
April 12, 2024

The stakes for higher education have never been higher as the educational landscape sees rapid evolution. As universities and colleges grapple with the dual challenges of technological disruption and increasing demands for accessible, quality education, the question of how best to implement investment in higher education becomes a priority. This debate has been ignited […]

Read More
wake up healthy
Hey, it’s 9 am… Wake up Healthy with 9amHealth!
April 12, 2024

Healthcare Rethink host Brian Urban explores ways to wake up healthy and stay healthy with his guest, Dr. Avantika Waring, MD, the Chief Medical Officer, at 9amHealth. This episode delves into the transformative approach to healthcare delivery championed by 9amHealth. Dr. Waring’s journey from a humanities student with a love for French to a […]

Read More
public safety and security
Strengthen Public Safety and Security: Modernize Radio Communication for Better Field Response
April 11, 2024

The importance of radio communication within public safety and security operations remains unbeaten in an era dominated by digital transformation. This medium, essential for over a century, continues to be the lifeline for responders on the front lines. From ensuring the safety of field agents to facilitating real-time critical information flow and enhancing situational […]

Read More