According to Bloomberg News, the Department of Energy (DOE) chose not to buy up to 3 million barrels to refill the SPR, which President Joe Biden had depleted before the 2022 midterm elections due to escalating gas prices becoming a political challenge for him and his Democratic colleagues. With oil prices surpassing $85 per barrel on Tuesday for the first time since October 2023, the cost of replenishing exceeded the administration's target price of $79 per barrel.
Bloomberg News reported that the DOE stated it declined this refill opportunity to prioritize "keeping the taxpayer's interest at the forefront" of its decision-making. In March, the administration acquired 2.8 million barrels for about $81 per barrel, slightly higher than the target price.
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Data from the U.S. Energy Information Administration reveals that the SPR currently holds approximately 363 million barrels, a significant decrease from around 638 million barrels at the close of 2020, marking its lowest levels since 1983.
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In 2021 and 2022, the Biden administration released roughly 180 million barrels from the nation's primary oil reserve, with a portion sold to China. This contrasts with former President Donald Trump's initiative in spring 2020 to refill the SPR when oil prices plummeted due to the pandemic response. Democrats criticized Trump's plan at the time, labeling it a subsidy to major energy firms. The DOE now views its refill purchases at higher prices as advantageous for taxpayers, as per Bloomberg News.
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