You may have noticed the narrative and the stories regarding Biden’s release of the strategic oil reserves are gone. And that’s even as we have our first weeks' worth of data about what they’ve actually done. You may have forgotten, but when Biden announced he’d be releasing record amounts of oil from the strategic oil reserve in late March, the effective date of the program to release a million barrels per day wasn’t set to start until May 1st. And what did I say about that announced release at the time? In my story entitled: Oil releases Have No Impact on Today’s Prices & Why They Don’t Work, I said this... I could give you a detailed historical perspective of how this policy has failed previously, however you need look no further than the most recent one which will illustrate the point with an example that’s fresh in your brain. On November 24th President Biden announced the release of 50 million barrels of oil from the Reserve to attempt to achieve lower prices.
The price of US crude was $72 at the time he released the oil on December 16th. The 50 million barrels represents the equivalent of 50 days' worth of releases under the policy which starts next month. 50 days from the release in December was February 3rd. The price of oil on February 3rd was $90. A 25% price increase in 50 days with 50 million barrels of oil being released from the Reserve by the Biden administration. I’ll spare you any additional macro-economic discussion by leaving it there. That example speaks for itself. The bottom line is Biden is doubling down on bad policy that’s already failed under his administration. As long the US is importing millions of barrels of oil per day from often hostile foreign actors, we’ll remain at the mercy of their actions – at least as much as our own. The price of a barrel of oil was $102.50 the moment Biden made the announcement of the release on March 31st. What was the price at the end of the first full week of strategic releases? $109.77.
That’s right, oil prices are 7% higher today with a week of the actual policy in place than they were when he announced it – which literally at the moment it happened I stated on-air prices would go higher. As you'll occasionally hear me say. I’ve not made a career out of being wrong. Remarkably, so many economists/leftists have.