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Oil trades put US $4 billion ahead this year

The White House trading desk did well this year:

Emergency releases from the U.S. Strategic Petroleum Reserve are slated to end this month, concluding an unusual attempt to lower gas prices after Russia’s invasion of Ukraine sent oil prices soaring. Over the release period, Washington sold 180 million barrels of crude at an average of $96.25 apiece, well above the recent market price of $74.29—meaning the U.S., for now, is almost $4 billion ahead.

Excellent work, team! I hope your boss gets a healthy bonus this year for bucking the conventional wisdom and going short on oil.

18 thoughts on “Oil trades put US $4 billion ahead this year

      1. memyselfandi

        By law they can't. Congress passed legislation years ago to permanently downsize the SPR. Countries only have these if they are oil importers, and presently the US is a net exporter.

  1. rick_jones

    Unless the oil was sold overseas, the Federal government presumably came out ahead. Otherwise, for the United States as a whole it is zero sum no?

    1. Convert52

      "Otherwise, for the United States as a whole it is zero sum no?"

      Are you sure? In the absence of the reserve sales, prices would likely have been higher, either do to a greater imbalance between supply and demand, or increased extraction of crude oil from higher-cost sources (e.g. tight oil).

      1. rick_jones

        Well, that does bring up a very important question. Did releasing oil from the reserves actually have a meaningful effect on the price of crude and thence gasoline?

  2. HokieAnnie

    Little known by folks outside Washington but there is a pay cap for Federal Employees, they max out at $176,300 per year.

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