Latest News

The ‘oil piggy bank’ is running low — but President Biden says he’ll replenish it when prices hit a range of $67 to $72 a barrel. Will the plan work?

S&P Futures



Dow Futures



Nasdaq Futures



Russell 2000 Futures



Crude Oil












10-Yr Bond















CMC Crypto 200



FTSE 100



Nikkei 225



The ‘oil piggy bank’ is running low — but President Biden says he’ll replenish it when prices hit a range of $67 to $72 a barrel. Will the plan work?

President Biden is drawing another 15 million barrels from the U.S. emergency reserves — and “is prepared to authorize” additional sales in the coming months if needed.

The White House announced on Tuesday that the Department of Energy will deliver more crude oil from the Strategic Petroleum Reserve (SPR) to the market in December, in order to drive down prices at the pump.

The release from the White House added the Biden administration has plans for replenishing the SPR once prices drop, after it received backlash from some experts for draining America’s “oil piggy bank” — which was established for emergency use during an oil supply or economic crisis.

Don’t miss

A TikToker paid off $17,000 in credit card debt by cash stuffing

Chances are good you’re overpaying for home insurance. Here’s how to spend less on peace of mind

Using the SPR to drive down gas prices

With the addition of these 15 million barrels, Biden will complete his plan to release a total of 180 million barrels — something he committed to back in the early days of Russia’s war in Ukraine.

The White House announcement comes just a few weeks after the president revealed he intends to release 10 million barrels from the SPR in November. That move was made primarily in response to the Organization of the Petroleum Exporting Countries’ (OPEC+) plans to slash oil production by 2 million barrels a day.

But even before the OPEC+ news was released, gas prices had started to creep up again, following a 98-day streak of lower prices over the summer.

Read more: ‘The numbers just don’t work’: While rising mortgage rates have some homebuyers giving up, others think they’ve found a workaround

By selling more crude oil from the reserves, Biden hopes to help bring prices back down. He’s also urging energy companies to do their part by investing in production and passing on their savings on to consumers.

As profits of the six largest publicly traded oil companies topped $70 billion in the second quarter of this year, Biden noted that those companies spent $20 billion on stock buybacks.

“My message to the American energy companies is this: You should not be using your profits to buy back stock or for dividends. Not now. Not while a war is raging,” the president said in a press conference on Wednesday.

“You should be using these record-breaking profits to increase production and refining.”

Will Biden’s new plan support long-term stability?

This decision triggered some concern — depleting the emergency oil reserves could put the country at risk in the future if the global or domestic oil supply ever reaches dangerously low levels.

However, the Biden administration maintains that the SPR is still the largest strategic reserve across the globe. It has about 400 million barrels remaining, which Biden says is “more than enough for any supply emergency.”

However, the U.S. consumed nearly 20 million barrels a day in 2021 — which means the reserve contains only about 20 days’ worth of domestic supply.

Biden says he plans to repurchase supplies when prices drop to or below $67 to $72 per barrel, calling this a win for both taxpayers and energy security. The Department of Energy is also in the process of finalizing a rule that will one day allow it to enter fixed-price contracts through a competitive auction process for oil to be delivered to the SPR.

Biden says this strategy “will protect taxpayers and help create certainty around future demand for crude oil.”

U.S. crude oil currently stands at about $88 a barrel, with gas prices averaging $3.83 a gallon nationally.

Some experts remain skeptical that these efforts will significantly impact the price of gas. Prices may have shot up recently due to refinery issues, but CNN reports that lower demand and cheaper blends of gas required in winter — as well as a likely recession — could lower gas prices on their own.

American Petroleum Institute president and CEO Mike Sommers also criticized Biden’s decision in a statement on Wednesday: “At a time when American energy can be a stabilizing force at home and abroad, we urge caution in continuing to rely on short-term efforts that are no substitute for sound long-term policies that enable American energy leadership.”

What to read next

You could be the landlord of Walmart, Whole Foods and Kroger (and collect fat grocery store-anchored income on a quarterly basis)

Here’s how much the average American 60-year-old holds in retirement savings — how does your nest egg compare?

‘This is a game changer for millions of Americans’: Student loan forgiveness applications are now officially open — here’s what you need to know

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


Yahoo Finance

3 takeaways from Biden’s latest oil reserves release

On Tuesday, President Biden announced the U.S. will release an additional 15 million barrels of oil from the Strategic Petroleum Reserve (SPR) in December in an effort to lower the price of gas at the pump.


‘I cry every time I think about it’: Asian woman says she was denied entry to Nevada casino in racial profiling complaint

On Sept. 4, Tammy Luu, a resident of Taylorsville, Utah, and her husband reportedly drove to West Wendover, Nevada, to watch the Vietnamese variety show “Saigon by Night” at Peppermill Resort and Casino’s concert hall. Luu and her husband went to the hotel’s casino after the show. After showing their IDs, four security guards — including the head of security, approached them and said she was banned from the establishment for an incident that occurred on Aug. 15, according to KSL.

Yahoo Life

Hunter McGrady says she was ‘getting it on right next to the ole crib’ during the first 6 months of her son’s life

Hunter McGrady says she had to relearn her body after having her first child.

Yahoo Life

Elizabeth Hurley, 57, says it’s still ‘taboo to publicly talk about breasts’

The British actress talks about her mission to empower women and challenge taboos.

Ukrayinska Pravda

Presidents Office: Ukraine has already destroyed half the potential of NATO’s main threat – Russia

IRYNA BALACHUK – THURSDAY, 20 OCTOBER 2022, 11:14 Andrii Yermak, the head of the President’s Office, is convinced that Ukraine’s membership of NATO will strengthen the Alliance. Source: Yermak on Telegram Quote from Yermak: “Ukraine has already destroyed almost 50% of the potential of the main threat to NATO in the form of the Russian Federation.

Yahoo Canada Style

Danica Patrick: ‘I did every test that could be done’ before breast implant illness diagnosis

The former NASCAR driver is the latest celebrity to speak openly about having her breast implants removed.


Professors sue California State University system over caste anti-discrimination policy

California State University (CSU) is facing a federal lawsuit filed by two of its faculty members over the school’s move to name caste as a protected status under its non-discrimination policy on Jan. 1. CSU, which has 23 campuses in California, became the first full U.S. university system to include caste in its non-discrimination policy. Professors Sunil Kumar of Cal State San Diego and Praveen Sinha of Cal State Long Beach both consider the move unconstitutional as they claimed it would only bolster discrimination against the school’s Hindu and South Asian populations.


Dozens of commuters get flat tires on California highway

Dozens of commuters in Los Angeles got flat tires on Wednesday, causing quite a scene on the busy 405 freeway.

Ukrayinska Pravda

Zelenskyy on Kerch Bridge explosion: we definitely did not order it

UKRAINSKA PRAVDA – THURSDAY, 20 OCTOBER 2022, 18:34 President Volodymyr Zelenskyy has rejected Russia’s accusations that the explosion on the Kerch Bridge on 8 October was orchestrated by Ukrainian special services.

Yahoo Sports

Chiefs’ loss to the Bills told us nothing we didn’t already know: Meet me at the logo

Charles McDonald has thoughts about this early game of the year contender, and if you disagree, you know where to find him.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News