On Sunday, the Organization of the Petroleum Exporting Countries (OPEC), which comprises major oil-producing nations including Saudi Arabia and Russia, announced that it would cut oil production by more than 1.16 million barrels per day starting in May. This move will bring the production down to 3.66 million barrels per day, as reported by Reuters. The announcement has had a significant impact on oil prices, causing them to surge on Monday.
Over the past two years, President Joe Biden has used the Strategic Petroleum Reserve (SPR) to tamp down oil price increases. However, he has now depleted it to its lowest level since 1983, with the reserve holding only 371 million barrels today compared to 571 million barrels a year ago. This depletion leaves the administration with limited options to address the expected drop in production by OPEC.
Last year, President Biden had announced his intention to stop selling oil from the SPR and start refilling the tanks. His administration had put out requests for bids for oil from suppliers to restock the emergency reserve when the price dropped to $70 a barrel. However, the plans were eventually canceled, even after oil prices fell into the $60s per barrel range. The administration never awarded any bids to restock the SPR.
The Biden Administration has instead urged OPEC to open its spigots and keep oil prices low, despite supply problems on the world market caused by Russia’s war on Ukraine. The impact of OPEC’s decision can already be seen, as wholesale gasoline futures rose on Monday. The national average for gasoline at the pump has increased to over $3.50, with regular gas costing $3.79 a gallon in Anchorage at Holiday on Bragaw St.
Earlier this year, Rep. Mary Peltola skipped out on a vote that would force the administration to stop draining the SPR.
Elect stupid people, get stupid government.
If there was ever a time to flood the world with American & Canadian oil, this is it. $50 oil would finish the Russian appetite for war in short order.
This was no more than Biden buying midterm votes. His climate policy was designed to wreck our energy infrastructure and now that’s on our doorstep. Isn’t it funny how everything Biden does seems to work out great for China? Coincidence I’m sure.
What is Biden’s plan? Is he just going to sell the United States of America to China?
“SELL”?.
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China Joe is GIVING away the USA to his Middle Kingdom masters, if not actually PAYING them for the privilege of undermining and destroying the USA.
Wait…Are we rooting for lower gas prices or a higher dividend? I’m so confused!
Ahem, revise the budget forecast…
Its a double edged sword.
Joe Biden,
Get those Air Force One 747’s fueled up, and also your fleet of bullet-proof limousines. You may need them to escape the red state DA’s coming after you. And later, the IRS. Keep a few Jerry cans filled at your multiple homes so you can make your scheduled appointments to the Alzheimer’s group sessions when you retire.
@Alvin,
The White House is already an assisted living facility. Biden stays propped up on drugs when he’s not sleeping, getting his diapers changed, or getting lectured by all the lesbians and trans people running the White House. That’s what our presidency has devolved into since 2021.
Haha I guess. 81 million people wanted this $&@#, now they can roll in it.
Correction, Floyd, 81 million votes (supposedly).
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The actual number of people involved in ‘casting’ those votes was certainly significantly less than 81 million.
I know that it feels natural to complain about high prices for gasoline but Alaska benefits strongly from high oil prices. That said, it is no surprise that Brandon’s moronic market interventions have and will cause problems for consumers and producers.
Well the world is waking up and the US is not invited to play. Our politicians have pushed , leveraged and conned the world and now we are just another third world power puff. We have no friends and the dollar is not the world money any more. Well done politicians you have ruined this country.
I agree with you, Mark.
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And the lemmings continue to march toward the edge of the cliff, to the drumbeat of the propaganda blaring from their TVs.
Sounds to me like it’s time for you to leave the US, if you’re so disenchanted with its prospects. How’s your Russian?
Moye russki dobry, tovarishch!
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But actually, shouldn’t you relocating to the gun-free radical leftist utopia of Kampuchea? I hear that Pol Pot has a camp guard position in mind expressly for you. You’ll need to resort to the use of a time machine to get there, but that shouldn’t be a problem for somebody whose ingenuity includes magically creating testicles from a vagina, and vice versa.
Do you really speak rusky or did you look that up? I know a little bit of Russian from watching Hunt for Red October.
Not really, Greg — I actually just ad-hoc invented some Russified Polish words there, to try to make it look authentic. 😉
I think we should take a stand and help all the libs that are hell bent on ruining America move into a place where they all can enjoy each others company. Dog you could be their leader.
When you live on the West Coast of Alaska with gas prices that froze in place with the departure of the fall fuel barge, you already know that traditional practice dictates that the Spring barge will bring increases. It’s a oil company profit thing that happens when OPEC is in the drivers seat and Countries world wide are gearing up for summer vacation.
We didn’t have this problem when Trump was in office, at least to the costly extent Binbiden has shoved it too us.
Green new deal my hinney.
All Trump had to do was shut his mouth and we wouldn’t be in this mess. Well some of us. I use less than a gallon of gas a week but it’s affecting my price of Bologna at the grocery store.
The Dems must be so proud.
The pResident has to go around begging other countries for the product we were producing in surplus before he was inaugurated.
I like cheap gas as much as the next person. Three years ago Trump was asking OPEC+ to cut oil production. The oil industry needed saving. The referenced Reuters article goes on to say the production could raise the price per barrel $10. With today’s price seems that would be right in line with balancing the state budget. I imagine there are a lot of politicians in this state saying nothing.
Let’s get gas up to five or six dollars a gallon so maybe the liberals can’t afford to drive or fly to the protest events.
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