Gas Prices Are Lower Thanks To Biden Weaponizing The SPR

To no one’s surprise Biden was able to artificially lower gas prices just in time for the holidays.

Biden administration officials made the controversial decision earlier this year to use the oil reserve as a type of weapon to lower global oil prices. Now, crude prices are below where they were before the war in Ukraine began and the U.S. has scored a $4 billion tax windfall on those sales.

Washington sold about 180 million barrels of crude at roughly $96 per barrel, all in an effort to bring down prices and scuttle Russia’s ability to use global prices to fuel its war machine in Ukraine. That decision is a departure from previous SPR releases, which were mainly pegged toward easing drops in supply as a result of a national emergency.

The price at the time of the March release is far above the current price of $74, meaning the U.S. taxpayer is almost $4 billion ahead, while gas prices are currently hovering around $3.10 per gallon, according to GasBuddy. Analysts say President Joe Biden’s SPR release worked, though they worry such a decision sets a precedent.

This is only temporary especially since demand for oil in China is seeing an uptick due to the Middle Kingdom’s importing more oil than they export and prices will only go up more resulting from China lifting their onerous COVID-19 restrictions. Then watch for Biden to push his green energy transition again.

PHOTO CREDIT: Pixabay