Price of oil already rebounds to prior level just days after Biden announced major release from strategic reserve

President Joe Biden has, for the third time in four months, ordered a substantial release of oil from the nation’s Strategic Petroleum Reserve in an effort to increase global supply and drive down the cost of oil and the price at the pump for a gallon of gasoline.

Unfortunately for all involved, that effort has — again, for the third time — utterly failed to make any noteworthy or long-lasting difference in the historically high gas prices Americans are currently paying, The Daily Caller reported.

In fact, just four days after Biden’s announcement of another SPR release, which immediately prompted a modest dip in the price per barrel of oil, that price had since surged back even higher than it was before by Monday.

Indeed, the price for a barrel of Brent crude oil, the global benchmark, increased more than 3.1 percent to $108.07 by Monday while the price per barrel for West Texas Intermediate crude, the U.S. benchmark, rose more than 3.4 percent to $103 per barrel by Monday.

Emptying the reserve in a fruitless effort

In a speech Thursday about high gas prices, President Biden blamed the coronavirus pandemic, Russian President Vladimir Putin, and greedy American oil companies instead of his own anti-domestic production policies for the inflated costs of short supply amid high demand.

To counter the high costs, Biden said, “Today, I’m authorizing the release of 1 million barrels per day for the next six months — over 180 million barrels — for the Strategic — from the — from the Strategic Petroleum Reserve.”

The president later told reporters that he expected the move to ultimately reduce gas prices by 10 to 35 cents per gallon within a few days thanks to lower prices per barrel for crude oil.

During Friday’s press briefing, Jared Bernstein of Biden’s Council of Economic Advisers shared the same optimistic outlook on the end result of the latest SPR release with reporters and highlighted the fact that several other allied nations had also made commitments to release certain quantities of oil from their own strategic reserves in order to further bolster global supply.

Yet, even as Bernstein predicted the release would succeed in driving down the costs of oil and gas, he nevertheless acknowledged the transient impact and “time-limited function” the strategic release would have on pricing.

No lasting impact from release other than depleting strategic reserves

The Daily Caller noted that President Biden had twice previously ordered a release of oil from the strategic reserves — an initial 50 million barrels in November followed by another 30 million barrels in March. In both of those instances, the price of a barrel of oil initially declined for a few days before rising once again, even hitting its highest mark ever a couple of weeks after the March 1 release.

Tom Pyle, president of the Institute for Energy Research, told The Daily Caller of Biden’s move to lower prices through SPR releases, “It’s not a ‘strategic price reserve.’ It was never intended for this and it won’t do anything, just like the last one.”

“This is about nine days worth of demand, but even less because a barrel of crude from the Reserve does not equal a barrel of gasoline,” he added, referencing the fact that, according to the U.S. Energy Information Administration, the U.S. consumes nearly 20 million barrels of oil per day — meaning Biden’s 1 million per day from the reserve will have minimal impact aside from depleting that strategic reserve.

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