Oil Prices Jump Again, Hello Mr. President, What Will You Do For an Encore?

Photo by Jeff W on Unsplash

On March 31, president Biden announced release from the Strategic Petroleum Reserves to lower gas prices. Relief was short lived.

(Click on image to enlarge)

 

Chart courtesy of Trading Economics, anecdotes in red by Mish

Crude Notes

• Russia invaded Ukraine on February 24, 2022. The price of WTI closed at $90.44
• Crude prices spiked as high as $126.52 on March 7 but closed at $115.80. 
• The highest closing price was $119.65 on March 8. 
• On March 31, Biden announced release from the Strategic Petroleum Reserve. The price closed at $100.28.
• Following the announcement, the price of crude declined to $92.29 on April 11.
• That was all the relief consumers received. The WTI price is now back to $108.25 as of April 17.

On March 31, CNBC noted Oil prices slide as Biden announces largest-ever Strategic Petroleum Reserve release

Now What?

November 21, 2021 Flashback

On that date I proclaimed Biden's Foolish Effort to Reduce Oil Prices by Tapping Reserves Will Fail.

On that date, the White House announced a coordinated release of oil reserves along with China, India, Japan, the U.K. and South Korea to ease gasoline prices.

The price of crude on November 21, 2021 was $76.20.

I was right then when I said it would fail and was right again on April 1, 2022.

MishTalk TV With the Head Energy Trader at Price Futures Group

On April 1, 2022 Phil Flynn and I discussed numerous Biden proposals to lower the price of gas and whether or not they will work.

Spoiler, we said Biden's plan wouldn't work. Phil Flynn noted Biden planned to release more oil from the reserves than was physically higher than the pipeline capacity!

For the video discussion, please see MishTalk TV With the Head Energy Trader at Price Futures Group

So does this president have a Plan B or not? 

Not to worry, oil prices will come down in the upcoming global recession.