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Biden Withdraws Record Amount Of Crude From 'Strategic Midterm Reserve'

Tyler Durden's Photo
by Tyler Durden
Monday, Sep 12, 2022 - 06:42 PM

It would appear that President Biden's administration is getting more and more desperate as the Midterms loom as the pace at which they are draining the nation's so-called 'strategic' reserve of crude oil just went to '11'.

Last week saw almost 8.54 million barrels withdrawn from the SPR - the biggest weekly drain in history.

This unprecedented collapse of the Strategic Petroleum Reserve to its lowest since September 1984 has helped lower oil prices (from their record highs)...

...and send gas prices down 89 days in a row (erasing all of the Putin Price Hike), well ahead of the pace of decline in raw crude oil and wholesale gasoline (as gasoline demand remains weak)...

There's just one thing, the price of gas at the pump is still up 76% since Biden was elected...

But 'average joe' doesn't care about 'president joe' actions to weaken the nation's "strategic" reserve to save his party from a bloodbath in the Midterms and that is clear as President Biden's approval rating has soared back from crisis lows almost tick-for-tick with the drop in the price of gas (down 89 days in a row)...

Who could have seen that coming?

But, do not launch the "Mission Accomplished" campaign quote yet as even Treasury Secretary Janet Yellen is warning that oil prices may increase in the winter as tougher sanctions will be imposed on Russian oil.

"This winter, the European Union will cease, for the most part, buying Russian oil," Yellen said.

"In addition, they will ban the provision of services that enable Russia to ship oil by tanker. And it is possible that that could cause a spike in oil prices."

And if oil goes up... so will gas prices.

Of course, what few want publicly discussed is the need to refill the SPR at some point soon... and the natural marginal bid that will place under the price of crude (but hey, that will be Republicans' problem should they win in November).

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