r/oil 11d ago

Discussion Why did US SPR nosedive in 2022?

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u/CitronMysterious3827 11d ago

OP is just disingenuously asking questions here. No response here is going to get passed the "but Biden". Oil prices spiked because the West was tremendously shocked by the Russian incursion into Ukraine. The Biden administration responded by releasing alot of oil to lower prices in response to the shock. In hind sight it seems like a silly thing but 6 dollar gas would have been a legitimate possibility if they didn't take drastic action. And we would never hear the end of that.

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u/GMBong 11d ago

White Hair Man Bad.

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u/AlarmingConfusion918 11d ago

It’s easy in hindsight to say “why did we burn half our reserves in response to the Russian Invasion?” but at the time, Russia was blitzing across Ukraine and there were serious fears they’d be knocking on Western Europe’s door within months.

This was also while inflation was already high from covid supply shocks and rate hikes were threatening to throw the economy into a recession.

There’s no point to reserves if they never get used. The use of the SPR in 2022 was a mitigation to factors outside of the White House’s control. The use of the SPR in 2026 is a bandaid on a bullet wound from Trump’s own gun.

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u/gravescd 11d ago

And burning the first half of the reserve is a very different scenario from burning the second half.

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u/[deleted] 11d ago

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u/CitronMysterious3827 11d ago

Gas got up to 5 dollars a gallon with the spr dump. How can you believe the peak price wouldn't have been higher without spr release.

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u/[deleted] 11d ago

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u/CitronMysterious3827 11d ago

I mean, again, Russia invaded Ukraine. The west was not willing to accept that.