Biden announces release of 180 Million barrels of oil from strategic reserves: Will gas prices fall?

On March 31st, 2022 Joe Biden announced the release of a staggering 180 million barrels of oil from the U.S.'s Strategic Petroleum Reserve in order to try and cool gas prices. Will it work? Has it been done before? And what is the Strategic Petroleum Reserve?

00:00 Intro
00:55 White House announcement
01:59 What is the Strategic Petroleum Reserve?
03:04 Why and when was the SPR established?
04:17 How often has the SPR been used in the past?
05:05 Will this bring down gas prices?

#strategicpetroleumreserves, #oil #gas prices

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ABOUT ME: I've hosted a personal finance TV show on the Oprah Winfrey Network, used to be a stockbroker, went to school to become a racecar driver (failed), founded a fintech company that provides financial planning software to financial advisors who want to help more people who don't have lots of money, and I consult with wealth management companies on commercializing applications of behavioral finance. I'm also quite fond of donuts.

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[davidoleary]

Great content as always Preet! The production value keeps going up too. The videos look great too! Bravo.

[Potatot]

1:32 What the heck are you even driving that has a 73 L tank??

[shyman]

On my first day I am going to gut our domestic production and then when prices go up I'm going to put our energy security on the line by releasing oil from the SPR. I'm a sheer genius or what?

[thechip]

thanks for explaining this. keep seeing dramatic stuff on the news, but nobody explaining why they decided to. this was helpful

[johnlandis]

When I tried to research the two previous release of the reserve I found out something interesting. Companies bid on the oil being released and then they have to pay back with interest in the future. I am not sure but I think this is in oil.


Working on this being paid back in oil.
I guess if I thought the price of oil will come down in the future or the rate if inflation is higher than normal this probably is a good choice for these companies. However, that means in the future while paying back the oil, the price of oil will be kept higher by reduction in the supply at the time.
This just points to inflation being high.

[Btdenn]

Yep, Biden keeps digging a deeper and deeper hole. Hope we survive his presidency.

[multirichardb]

Amazing information to hear, not in a million years would anyone imagine this, form of tech in crude oil?

[gsk]

5% us oil consumption will be lowered but USA consumes 10.5 bpd so the oil reserves should contribute 10% oil consumed means lowering gas prices between 5-10 $ a barrel meaning if it costs $100 bpd, the prices going forward should be lowered by 10% if oil tycoon of texas and oklahoma and louisiana does not lower the prices of oil by 30-40%. shame on xo, cvx and big oil forms

[miked]

Preet Banerjee meets Preet Energy. Good work!

[CARL_]

Can u do a video why russia storing a lot of gold and using btc when purchising oil
I just need to know more deeper bec ruble of russia just fix it self

[craffte]

I remember when the speed limits started going up. It felt like the world was going insane. Little did I know.

[garyt]

Every single NATO country has an SPR. Together they are the GSPR. They've been around for decades.

[seanrrichards]

In January 2022 the US produced about 11.35 million barrels of oil per day (MMBOPD). The US imported 6.35 MMBOPD made up of mostly sour/heavier crude from Canada and yes Russia! For a total of 17.7 MMBOPD coming into US refineries. The US also exported out some 3.3 MMBOPD of light sweet crude (much of the shale oil is too light to refine the US and has to be shipped out of the country for initial refining) to other countries because the US refineries have to have a blend of 65% sweet and 35% sour oil to make the proper amount of gasoline, diesel and jet fuel. The fact is our US refiners buy exactly the 65/35 blend they need. Every day. And that amounts to about 17.7 MMBOPD. Every day. The administration dumping 1 MMBOPD into the market means that a few lucky refiners will “not” have to buy that amount of imported oil for the next 6 months. It will simply go somewhere else. No refiner wants to store oil at $105 per barrel. Makes no sense. The refiners won’t be buying any additional sour oil for a few months. No big deal. It’s only a few Texas and Louisiana refiners that get this windfall benefit ahead. No East or West Coast refiners.

[apolinariomabini]

Midterm election must be coming up. OPEC will oblige for for better return after the midterm.

[BaybieK]

We should all just move to EVs where possible.

[deniskochinozo]

Last bottle is opened, green movement is about to win)

[nothingisgiven]

Sharing for all my other retails. Evolve the financial markets! "Retail investors determine the price of gold" more so then central banks or institutions (CPM group). Can you imagine a system that unifies retail investors. Example on X day millions of retail investors go long, on Y day millions close position, were the return is averaged say each participant makes 5% controlled by order flow first order in is last out and last order in is first out, or something method devised to ensure anyone one group of participants is left hold the bag so to speak. Fairly certain someone will develop something like this over the next few years, and incorporate it into an existing platform. Like this comment to support the idea and if you would want to be able to trade with something similar to the idea. Feel free to copy and share the idea of you like.