USA 2020 Elections: Thread

[grarpamp]

SPR @ 372/714MBbl -14.5 avgLast3Mo  a/o Dec 30
Negligible 19 days remaining which can't be pumped
out fast enough to meet demand anyway.
Not a single barrel pumped into the SPR for all of 2022,
not any since Trump pumped a few in.

Democrat Admin so fraudulent that not only were they
caught trading national security for election gains,
they're apparently willing to destroy the SPR for it too,
ignoring warnings since at least 3 months ago.

Hunter Biden, the King of Ukraine and Burisma Oil.


White House Delays Refill Of Strategic Oil Reserve, Balks At "Too
Expensive" Offers

https://www.dropbox.com/s/4azzxdv9p4w5ga6/JPM_Oil%20Weekly%20Less%20might%20be%20better%20than%20more_20221018.pdf?dl=0

The Biden administration had no problems aggressively draining the SPR
by 1mmb/d at market prices in the immediate aftermath of the Ukraine
war, in hopes of lowering the price of gasoline ahead of November's
elections and avoiding an inflationary midterm rout. However, when it
comes to refilling the SPR, now that US emergency inventories are down
to the lowest level since November 1983 and not too far from an all
time low which threatens the structural integrity of the salt caverns
the oil is deposited in...

... the White House has "unexpectedly" gotten cold feet.

One month after the White House said it will start refilling the
Strategic Petroleum Reserve, and made an initial order of 3mm barrels
of sour crude (a tiny fraction of the 200 million released in 2022),
in what it said was a clear message to oil companies that they can
freely invest capital in boosting output cause, well, Biden's got
their backs, overnight we learned that there was a rather sizable
caveat in the White House's brilliant plan.

According to Bloomberg, the Biden administration has delayed the
replenishment of the nation’s emergency oil reserve after deciding the
offers it received were either too expensive or didn’t meet the
required specifications.  Citing "people familiar" the report adds
that "the Department of Energy rejected the several offers it got for
a potential purchase in February." In other words, absent a brutal US
or global recession which drags oil far lower - courtesy of the Fed
which is doing Biden's bidding of containing inflation by crushing the
US economy with the highest interest rates in a generation - the SPR
won't get any more oil.

While the DOE will put off the purchase it had originally planned for
next month, the proposed program, which used a new approach that
accepts fixed-price offers, will continue, one of the people said. Of
course, it will "continue" only as long as oil is below a certain
White House mandated threshold, anything above that - as we now can
see - means no refills. As a reminder, last year there were reports
that the Biden administration had planned to start buying crude when
it dropped around $70 a barrel; and while oil fell during the fourth
quarter and US benchmark prices fell close to those levels last month,
they have since rebounded, with the SPR refill price serving as a
market support level.

“DOE has put forth a long term plan to transition from release to
replenishment, and we’re committed to doing so in a manner that
provides a fair deal for taxpayers,” the department said in a
statement Friday.

“DOE will only select bids that meet the required crude specifications
and that are at a price that is a good deal for taxpayers,” it said.
"Following review of the initial submission, DOE will not be making
any award selections for the February delivery window."

What this means is that, as we noted yesterday, either the White House
- in all its infinite wisdom - will start having to chase the price of
oil even higher in hopes of catching up to the offer now that it has
set a firm floor for oil prices thereby shooting itself in the foot...

    The Department of Energy rejected the several offers it got for a
potential SPR purchase in February: BBG

    Well it will just have to raise its bid then
    — zerohedge (@zerohedge) January 7, 2023

... or the SPR will not see even one more drop of new oil, and the 372
million barrels currently there, just under 19 days of domestic
consumption, will be all the US emergency oil inventory at the time
when China inevitably invades Taiwan - a far bigger emergency than a
Democrat loss in the elections. At that point only that legendary
energy guru, Hunter Biden, who was paid so handsomely for his energy
insight by Ukraine's energy giant Burisma...

"NEWS: Hunter Biden joins the team of Burisma Holdings"

... will be able to save the US.