Breaking news out of D.C. right now where the White House just announced that the Department of Energy will release up to 50 million barrels of oil from the Strategic Petroleum Reserve:

And the White House wants oil companies to “pass savings on to consumers as quickly as possible”:

Um, what savings? The price of oil barely moved on the news:

That’s probably because the “release” is really an exchange and 32 million of the 50 million barrels will need to be returned to the SPR by oil companies at a later date. From the DOE:

Companies interested in receiving crude oil through the exchange must submit bids no later than 10:00 a.m. Central Time, December 6, 2021, and contracts will be awarded to successful offerors no later than December 14, 2021. Deliveries will take place January through April 2022, with early deliveries accepted in late December.

Exchange crude oil will be returned to the SPR in calendar years 2022, 2023, and 2024. A Notice of Sale for up to 18 million barrels of SPR crude oil will be announced no sooner than December 17, 2021.

This is one, gigantic nothing-burger says hedge fund manager Kyle Bass:

Even worse? The White House has no understanding of energy markets:

Gulp:

Javier Blas, Chief Energy Correspondent at Bloomberg News, added that, “No amount of SPR oil releases will resolve the biggest energy crunch currently affecting the global economy: natural gas and electricity”:

Former President Trump also called out President Biden for the move:

Of course, Dems are giant hypocrites on all this. Sen. Chuck Schumer is cheering the release:

But during the oil freefall during Covid, he called Trump’s move to fill up the SPR a “bailout for big oil”:

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Tags: oilSPR

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