What's new

Why Is The U.S. Sending Its Emergency Oil Reserves To China?

onebyone

SENIOR MEMBER
Jul 2, 2014
6,796
-4
16,339
Country
Thailand
Location
Thailand
Editor OilPrice.com
Fri, July 8, 2022 at 11:00 PM


U.S. SPR release were exported to Europe and Asia last month, including top US geopolitical nemesis in the global arena, China, even as U.S. gasoline and diesel prices hit record highs.
c91e4bf1d49067bf94c2cca09fe7d05d

The export of crude and fuel is blunting the impact of the moves by U.S. President Joe Biden to lower record pump prices. In a call, Biden on Saturday renewed a call for gasoline suppliers to cut their prices, drawing rightful criticism from Amazon founder Jeff Bezos, because going after mom and pop gas stores merely demonstrates just how clueless the handlers of the senile presidential puppet truly are.
About 1 million barrels per day have been drained from the Strategic Petroleum Reserve through October, at an unprecedented pace. The drain means SPR inventories fell to the lowest since 1986. US crude futures are above $100 per barrel and gasoline and diesel prices above $5 a gallon in one-fifth of the nation. US officials have said oil prices could be higher if the SPR had not been tapped, and for once they are right. Still, the question looms of what happens to oil prices when the US can no longer sell the SPR amid concerns of a real emergency: we know the answer and the Biden admin won't like it.

Related: Is Biden Really Responsible For High Oil Prices?
"The SPR remains a critical energy security tool to address global crude oil supply disruptions," a Department of Energy spokesperson said, adding that the emergency releases helped ensure stable supply of crude oil.
Citing customs data, Reuters traced that the fourth-largest U.S. oil refiner, Phillips 66 shipped about 470,000 barrels of sour crude from the Big Hill SPR storage site in Texas to Trieste, Italy. Trieste is home to a pipeline that sends oil to refineries in central Europe. Meanwhile, Atlantic Trading & Marketing (ATMI), an arm of French oil major TotalEnergies, exported 2 cargoes of 560,000 barrels each. Cargoes of SPR crude were also headed to the Netherlands and to a Reliance refinery in India, an industry source said.
What is most notable is that a third cargo headed to US arch-enemy,
But what is even scarier is the following exchange, in which the White House simply had no response when asked if the US is selling its emergency reserve oil to China.
Pointing out the obvious, Matt Smith, lead oil analyst at Kpler. said that "crude and fuel prices would likely be higher if (the SPR releases) hadn't happened, but at the same time, it isn't really having the effect that was assumed."
And while the midterms will come and go, and Democrats will suffer a historic loss, the U.S. energy picture is getting more dire by the minute thanks to the sheer incompetence and/or corruption of the executive branch: crude inventories are the lowest since 2004 as refineries run near peak levels. Refineries in the U.S. Gulf coast were at 97.9% utilization, the most in three and a half years. This means even the smallest accident can and will sell oil prices to the moon
By Zerohedge.com
More Top Reads From Oilprice.com:
 

MH.Yang

SENIOR MEMBER
Jul 21, 2021
4,472
-1
8,984
Country
China
Location
China
This is China's oil import data for the first five months of this year. China imported 3.8743 million tons of oil from the USA and 1.6823 million tons of oil from Canada.

It is not surprising to import oil. What is strange is that the price of oil exported by these two countries to China is lower than that of Russia.

You know, Russia gave China a 30% oil discount! This means that the USA and Canada give China greater discounts.

Do Americans want to use this method to force other oil exporting countries to reduce prices?

IMG_20220709_203957.jpg
 

Han Patriot

ELITE MEMBER
Mar 23, 2011
12,202
-33
18,797
Country
China
Location
Singapore
This is China's oil import data for the first five months of this year. China imported 3.8743 million tons of oil from the USA and 1.6823 million tons of oil from Canada.

It is not surprising to import oil. What is strange is that the price of oil exported by these two countries to China is lower than that of Russia.

You know, Russia gave China a 30% oil discount! This means that the USA and Canada give China greater discounts.

Do Americans want to use this method to force other oil exporting countries to reduce prices?

View attachment 860278
That sounds desperate but 3 million tonnes is a drop in the Chinese import pond.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom