Expert: Biden’s drawdowns from Strategic Petroleum Reserve failed to control soaring oil prices

10/26/2022 / By Belle Carter

An economic expert blasted President Joe Biden’s drawdowns from the U.S. Strategic Petroleum Reserve (SPR), saying that these failed to control soaring oil prices.

Phil Flynn, senior account executive at the PRICE Futures Group, said the Biden administration is coming to grips with “the reality” of its SPR drawdowns being in vain.

“If at first, you don’t succeed, release more oil. The Biden administration still doesn’t get the fact that the release from the SPR failed to control oil prices,” Flynn wrote in an Oct. 18 blog post.

Flynn pointed out that Biden failed to understand that his method of “addressing” the energy crisis is not working because the SPR was never meant as a vehicle to control fuel prices. The SPR’s size was totally inadequate for the job had it been made for this purpose, Flynn added.

“It’s kind of like the ‘Little Shop of Horrors,'” said the expert, comparing Biden’s strategy to the 1986 film. “When you start giving the market a little bit of blood, it’s going to want more and more and more, and it will never be truly satisfied.”

Flynn also commented on the White House’s announcement that gas prices per gallon are $0.40 lower from their peak earlier this year. According to him, it was actually $0.545 higher than a year ago before the SPR drawdowns began.

Biden later announced that he has allowed the release of 15 million barrels from the SPR sometime in December, a draw that completes the plan announced earlier this year to release a total of 180 million barrels.

The president argued that this policy “should help keep gas prices at bay.” Biden did admit that “they’re not falling fast enough [and] families are hurting.”

With 400 million barrels – over half of the SPR – still available, the White House is ready to release more in the coming months to prevent oil price spikes.

“The upcoming oil reserve release is aimed at ensuring there’s enough oil on the market to ensure gasoline prices don’t spike up, no matter what actions Russia and other big players take,” NPR reported.

Biden’s energy policies adversely affecting chances of Democrats in midterms

The latest response of the Biden regime to battle oil price hikes came just weeks before the midterm elections, and surveys are certainly showing how this affected the voters’ view of the Democrats.

Analysts observe how Biden and his fellow Democrats are focusing on other issues such as abortion access and the fate of democracy and not inflation, which includes soaring gas prices.

Due to the dwindling fuel supply from foreign sources due to the Europe energy crisis, the Organization of the Petroleum Exporting Countries’ decision to reduce oil production by two million barrels per day starting in November and Saudi Arabia’s blatant rejection of Biden’s plea to delay their target cuts, the White House resorted to pulling from the SPR, which is now at a four-decade low. (Related: OPEC+ set to reduce oil production – a blatant rejection of Biden’s plea.)

Republicans knew that this was a political move ahead of the midterms and they doubted the truth when administration officials claimed that resorting to the SPR resulted in the average driver saving about $60 per month compared to peak prices in June.

According to the White House, it plans to restock the reserves as soon as oil prices fall between $67 and $72 per barrel. U.S. crude prices are around $82 per barrel. The pledge would give oil companies a floor so that they can take steps to boost domestic production now.

“You’re sitting on record profits and we’re giving you more certainty, so you can act now to increase oil production now,” Biden said, urging the industry to make sure gas prices fall in concert with oil prices.

Visit FuelSupply.news for more news related to the country’s oil reserve supplies.

Watch the video below where lawmakers call out Biden’s economic and energy policies ahead of the midterms.

This video is from the NewsClips channel on Brighteon.com.