{"id":1428648,"date":"2023-09-21T16:25:00","date_gmt":"2023-09-21T20:25:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1428648"},"modified":"2023-09-21T16:25:00","modified_gmt":"2023-09-21T20:25:00","slug":"joe-biden-defiles-the-corpse-of-the-strategic-petroleum-reserve","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/joe-biden-defiles-the-corpse-of-the-strategic-petroleum-reserve\/1428648\/","title":{"rendered":"Joe Biden Defiles The Corpse Of The Strategic Petroleum Reserve"},"content":{"rendered":"

Joe Biden Defiles The Corpse Of The Strategic Petroleum Reserve<\/span><\/p>\n

\n

Submitted by QTR’s Fringe Finance<\/a><\/em><\/p>\n

Yesterday, an apparently fake headline circulated on Twitter (or X, or\u00a0whatever the f**k\u00a0<\/em>it\u2019s called this week), alleging that President Biden was open to \u201cdepleting\u201d the Strategic Petroleum Reserve due to rising oil prices.<\/p>\n

Many quickly accepted the headline as genuine, perhaps\u00a0because it sounded precisely like something President Biden might say<\/strong>. I spent some of the afternoon looking for the source and it was not\u00a0The Wall Street Journal,\u00a0<\/em>as claimed on Twitter.<\/p>\n

<\/a><\/p>\n

Though the headline was fabricated, it almost doesn\u2019t even matter at this point. President Biden has made it clear<\/a> that tapping into the Strategic Petroleum Reserve is\u00a0perpetually\u00a0<\/em>under consideration, undoubtedly because oil prices (and the prices of\u00a0everything<\/em>, i.e. inflation) have become a headline issue in the upcoming presidential election.<\/p>\n

In essence, the lower oil\u2019s price is, the easier it is for President Biden to claim success in fighting inflation. Reduced oil prices also enable leftists to argue that limiting drilling domestically does not adversely affect consumers and therefore, we should all do\u00a0whatever the f**k they want at any and all times, including cheering them on while they deface priceless historic works of art,\u00a0<\/em>all\u00a0<\/em>in the name of sacred \u201cclimate change.\u201d<\/p>\n

<\/a><\/p>\n

However, by perpetuating this oil price \u201csolution\u201d charade with a series of short-term fixes, the administration sacrifices our country\u2019s long-term goals, ultimately causing more harm than good.<\/p>\n

As Jim Bianco correctly noted on Twitter yesterday, the SPR was created to prevent\u00a0supply shocks (i.e. shortages of actual oil)\u00a0<\/em>that the U.S. saw in the 1970s \u2014 not to manage\u00a0prices\u00a0<\/em>of ample supply.<\/p>\n

And then there\u2019s that pesky term \u201cstrategic\u201d that keeps popping up.<\/p>\n

Has \u201cThe Big Guy\u201d ever asked himself<\/a>\u00a0what that word means in the context of the\u00a0Strategic<\/strong>\u00a0Petroleum Reserve? After all, it\u2019s not just the\u00a0petroleum reserve<\/em>, it\u2019s the\u00a0strategic\u00a0<\/strong>petroleum reserve.<\/p>\n

Oxford defines the word as \u201crelating to the identification of long-term or overall aims and interests and the means of achieving them\u201d.<\/p>\n

The word implies long-term planning, something evidently lacking in the administration\u2019s approach. Their decisions instead seek short term political currency by depleting our national reserve, meant for emergencies, not market fluctuations. Price serves as a rationing mechanism and government interference distorts this natural function.<\/p>\n

I am once again reminded of the chief reminding Marcus and Mike in Bad Boys 2 of the meaning of the word \u201ctactical\u201d.<\/p>\n

\u201cWhat\u2019s your job description? What is your job description,\u201d the public asks Biden as the SPR lays bone dry.<\/p>\n

\u201cTactical narcotics team! Key word:\u00a0tactical!\u00a0<\/em>Displaying finesse and subtlety in achieving the goal! Tell me gentlemen, what was subtle about your work today? 42 cars – and a boat!\u201d<\/p>\n<\/p>\n

\u201cStrategic petroleum reserve. Key word:\u00a0strategic!\u00a0<\/em>Definition: relating to the identification of long-term or overall aims and interests and the means of achieving them. Tell me President Biden, what was long-term about defiling the corpse of the strategic petroleum reserve to get gas prices down $0.10 for 10 minutes?\u201d<\/p>\n

Not only is the move not \u201cstrategic\u201d, it makes us look vulnerable on the world stage.<\/p>\n

Ironically, Prince Abdulaziz bin Salman tried to warn us back in late 2022 that emptying our Strategic Petroleum Reserve (SPR) was a stupid idea to try and \u201ctemporarily\u201d fix oil market prices.<\/p>\n

“People are depleting their emergency stocks, had depleted it, used it as a mechanism to manipulate markets while its profound purpose was to mitigate shortage of supply.\u00a0However, it is my profound duty to make it clear to the world that losing emergency stock may become painful in the months to come,<\/strong>” he\u00a0said<\/a>\u00a0back in October.<\/p>\n

50% OFF ALL SUBSCRIPTIONS:<\/strong>\u00a0Subscribe and\u00a0get 50% off and no price hikes for as long as you wish to be a subscriber<\/a>.<\/em><\/p>\n

After all, everyone knows there\u2019s only\u00a0one\u00a0<\/em>organization that\u2019s allowed to manipulate oil supply, and that\u2019s OPEC. Oh, and now maybe BRICS, which is soon to have 6 of the top 10 largest oil producers in the world, making up about 40% of the world\u2019s total oil supply<\/p>\n

<\/a><\/p>\n

Not only did the Biden Administration\u00a0not\u00a0<\/em>heed this warning, but they also seem to have little to no understanding about geopolitics or free market economics. If they did, they would see they are putting the country into a precarious position when it\u2019s totally unnecessary.\u00a0<\/em>They continue to use the SPR as a short term solution to what is going to become a long-term problem.<\/p>\n

<\/a><\/p>\n

The plundering shown above will do very little to the price of oil over the long term. Somewhere, OPEC is laughing. Here\u2019s where draining the SPR has gotten us over the last year:<\/p>\n

<\/a><\/p>\n

Meanwhile, using up the SPR does little to ensure energy security in potential times of war (we technically aren\u2019t, but we\u2019re fighting Ukraine\u2019s war), natural disaster (read: Maui, etc.), or other significant crises (a massive developing Cold War and\u00a0erosion of the petrodollar<\/a>). As Zero Hedge noted last week, we are at the lowest levels of total crude inventories in America since 1985, including the Strategic Petroleum Reserve<\/p>\n

<\/a><\/p>\n

Per\u00a0Bloomberg<\/a>, oil prices had been coiling for a few days ahead of data out last week and are \u201cbreaking out recently after OPEC reported that\u00a0global oil markets face a supply shortfall of more than 3 million barrels a day next quarter<\/strong>\u00a0– potentially the biggest deficit in more than a decade.\u201d<\/p>\n

\u201cIf realized, it\u00a0could be the biggest inventory drawdown since at least 2007<\/strong>, according to a Bloomberg analysis of figures published by OPEC\u2019s Vienna-based secretariat,\u201d a\u00a0report\u00a0<\/a>last week said.<\/p>\n

<\/a><\/p>\n

It continued:<\/p>\n

OPEC\u2019s 13 members have pumped an average of 27.4 million barrels a day so far this quarter, or\u00a0roughly 1.8 million less than it believes consumers needed<\/strong>, according to the report.<\/p>\n

And so, the problem is that no matter how many times Joe Biden taps the SPR, it\u2019s fruitless, because OPEC calls all the shots.<\/p>\n

OPEC (Organization of the Petroleum Exporting Countries) gets together and decides how much oil they’re going to pump and sell on the market. By controlling the supply of oil, they can influence its price. If they produce less, scarcity kicks in and prices go up; if they produce more, there’s a surplus and prices go down.<\/p>\n

The situation is even more absurd given that the Biden administration is actively preventing U.S. companies from drilling for more oil.<\/p>\n

Our reserves are a safety net for national emergencies, not a solution to $80 or $100 per barrel oil. And this is not a national emergency, but an \u201celectability emergency\u201d for President Biden. The disconnect between halting drilling leases and daily pump pain boils down to dollars and cents. Short-term gains in electability come at the expense of long-term national interests and you and I paying more at the pump.<\/p>\n

Voters and consumers have two ways to think about the issue: one is the delusional take that the administration is actively doing its job and managing the issue by diving into our nation\u2019s surplus at a time of need. The second is the double-whammy of a reality check that the administration is selling the country\u2019s safety net out, putting us in a precarious position, and exacerbating price issues by stopping oil companies from bringing new supply online.<\/p>\n

It\u2019s literally an instance where the government is making the problem worse than it was to begin with. But once again we are reminded that the nation is unable to deal with even a\u00a0slight\u00a0<\/em>moment of\u00a0temporary\u00a0<\/em>discomfort when it comes to markets and prices. We continue to focus on short term fixes, not just with the strategic petroleum reserve, but with the stock market and the economy, meaning that the long-term prices (literally and figuratively) we will eventually pay will be that much more consequential.<\/p>\n

More from Fringe Finance<\/em>:<\/p>\n

Sick Thoughts Of Capitulating<\/a><\/p>\n

100 Sigma Events?<\/a><\/p>\n

Fed Rate Cuts Should Scare The Shit Out Of You<\/a><\/p>\n

Peter Schiff: Fed Money Magicians Running Out of Rabbits<\/a><\/p>\n

Joe Rogan Will Interview Donald Trump<\/a><\/p>\n

The Unforgivable Ivermectin Swindle<\/a><\/p>\n

\tThis Popular Stock Could Be An Unexpected Land Mine<\/a><\/p>\n

<\/a><\/p>\n

<\/a><\/p>\n

QTR\u2019s Disclaimer<\/strong><\/em>:<\/strong>\u00a0I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. This is not a recommendation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade\/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. These positions can change immediately as soon as I publish this, with or without notice. You are on your own. Do not make decisions based on my blog. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates.\u00a0I did my best to be honest about my disclosures but can\u2019t guarantee I am right; I write these posts after a couple beers sometimes. Also, I just straight up get shit wrong a lot. I mention it twice because it\u2019s that important.<\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 09\/21\/2023 – 12:25<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/joe-biden-defiles-corpse-strategic-petroleum-reserve<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Joe Biden Defiles The Corpse Of The Strategic Petroleum Reserve Submitted by QTR’s Fringe Finance Yesterday, an apparently fake headline circulated on Twitter (or X,…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1428648","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5ZEI","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1428648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1428648"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1428648\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1428648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1428648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1428648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}