Strategic Petroleum Reserve (SPR)

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The Biden administration has pulled almost all of the oil it can out of the Strategic Petroleum Reserve (SPR) and now must fill it back up. The SPR release for 2023 is mandated by Congress to be 26 million barrels, which is the lowest amount since 2021. There is to be no release in 2024.

The big dog itself, China, has just increased its oil quota by 21%, or 170 million barrels. The Middle Kingdom has said it will import 970 million barrels of oil in 2023. To put this in perspective, it imported 800 million barrels in 2022.

Meanwhile, Biden dumped 180 million barrels of oil out of the SPR last year. In other words, the market will have to come up with 350 million barrels of extra oil. That’s a lot.

Furthermore, due to several years of lockdowns, the Chinese are sitting on trillions of dollars.

Pent-up demand should boost the economy and demand for oil.  

China Demand

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