The nation’s Strategic Petroleum Reserve, the one drained by President Biden in an effort last year to lower nationwide gasoline prices, is in an even brighter spotlight because of the attack by Hamas on Israel and the declared war.
Crude oil prices surged on Monday, then lowered slightly on Tuesday. Both Brent crude, the worldwide benchmark, and West Texas Intermediate, the U.S. benchmark, moved closer to $90 a barrel. It has analysts suggesting the conflict in Israel could result in large global oil supplies being withheld.
“If the conflict envelopes Iran… up to 3% of global oil supply is at risk. And if a wider conflict eventuates that ends up impacting transit through the Strait of Hormuz, around 20% of global oil supply could be held hostage,” energy analyst Saul Kavonic said in an interview with Reuters.
Biden’s political use of the SPR angered Oklahomans in the U.S. House and Senate and drew criticism. The President brought the emergency oil supply to its lowest level n four decades. Reports indicate that the SPR contains 351.3 million barrels of oil which is 44% lower than it was in January 2021 when Biden became President.
The issue was the suject of requests by House Energy and Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Energy and Natural Resources Committee ranking member John Barrasso, R-Wyo., for the Government Accountability Office to investigate how the administration’s SPR releases may indirectly threaten national security.
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