The Economist reported that Saudi Arabia had refused Biden's request for oil after the Pandemic.
Pent up demand during the Pandemic had resulted in raised oil prices because OPEC couldn't meet the demand when people returned to traveling and flying. In addition, there was a new war between Russian and Ukraine. Both Biden and the Europeans wanted to freeze Russia out with sanctions so they could not use their oil machine – their biggest export – to finance the war. All of this resulted in an extremely bullish oil market.
In response to this, President Biden released 180 million barrels of crude oil from the Strategic Petroleum Reserve in 2022 when the price was $95 a barrel. That 180 million barrels was more than had ever been released before, compelling other oil traders to lower their prices.
When the price came down to $67 a barrel in July 2023, President Biden began to purchase oil at that price to refill the Strategic Petroleum Reserve.
President Biden has replaced 1/5th of what he sold, posting a profit of $582 million, timing the market to perfection.
This has never been done before. This is an innovative tactic in using the Strategic Petroleum Reserve to put a guardrail on oil prices, stabilizing the market.
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