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.

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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.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.