I can’t help to be a little cynical that the U.S. government is buying back oil for its SPR reserve in January - March 2025, AFTER the upcoming Presidential election . Of course the Democrats cannot afford to have high gas prices at the pump, coming into November, so have deferred the buy back into 2025.
Since Q1 this year the federal government has been hardly adding to the US strategic reserve ( see below), even though Biden sold 200m barrels in 2022 after the outbreak of the Ukraine war.
Biden is no fool on geopolitics , so what promises has he & his administration made to the Saudi’s who have kept a lid on production to support prices & put diplomatic breaks on expanding the Gaza - Israel conflict in the Middle East ? What is the quipro quo as demand softens ? What will Harris do to keep those promises if elected . What will the Saudis do if Trump crashes prices by doubling down on “drill baby drill”?
My guess is after the election and before the inauguration in 2025 there is reasonable chance that the Russian’s & Iran and its proxies will be rattling the sabres to test an ailing Biden and provoke a public response from the elected U.S. President in waiting . Will be a volatile period for the POO, I suspect .
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