Watch out for the coming oil shock in the USA

Phil Ebersole's Blog

This just in from Ian Welsh.

Recently read a smart lad who noted a few simple things:

  1. Biden’s been releasing oil from the Strategic Petroleum Reserve (SPR).

  2. The SPR has basically two types of oil: sour and sweet.

  3. Biden has been releasing almost all sour since that’s what most US refineries need.

  4. At the current rate of release, the SPR runs out of sour crude to release around March.

[snip]

Of course, when Biden stops releasing oil, either because he’s out or because he chooses to stop after the election or the holidays are over, then prices are going to spike if sanctions are still in place against Russia and/or Russia is unwilling to sell to the West.  As a bonus, the government will need to buy oil itself to stock the reserve back up.

[snip]

What this means for Americans is that there’s a very good chance…

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