Biden Administration Secures Historic Crude Oil Deal

President Joe Biden's administration has secured an additional 6 million barrels of crude oil to replenish the Strategic Petroleum Reserve (SPR).

Acquired at an average cost of $68.56 per barrel, this purchase is part of ongoing efforts to stabilize the oil market, according to energy analyst Patrick De Haan.

This latest transaction follows significant oil sales initiated in 2022 when Biden ordered the release of over 100 million barrels from the SPR in response to soaring prices due to geopolitical tensions, particularly after Russia’s invasion of Ukraine. The release helped lower oil prices from above $100 per barrel to a more manageable level of around $80.

The DOE has stated that this recent acquisition will be delivered between February and May 2025, adding to the over 55 million barrels already purchased for the reserve. Financial experts like Todd Campbell from TheStreet have praised this strategy as a potentially historic oil trade.

While the SPR remains below pre-invasion levels, these actions highlight the government’s intervention in market stabilization during crises. The initial release significantly reduced gas prices, easing pressure on consumers.

As of Wednesday, the United States Oil Fund experienced a decline of more than 2% amidst ongoing Middle Eastern unrest, while the Energy Select Sector SPDR Fund saw early losses but regained some ground later in the trading session.