A crude storage tank at the Freeport SPR facility
US SPR takes on new role
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
The purpose and optimal size of the US Strategic Petroleum Reserve (SPR) has become the subject of debate since the Biden administration adopted an at-least implicit price band mechanism for withdrawals from and refills of the reserve in 2022. The US Department of Energy (DOE) released more than 220m bl from the SPR in 2022 to combat a 50% jump in benchmark light crude prices—to $120/bl—due to actions associated with Russia’s invasion of Ukraine in February of that year (see Fig.1). The initial 180m bl—released under IEA obligation, unlike the remainder—fetched an average price of $95/bl, suggesting an implicit top to the price band. A
Also in this section
20 March 2025
As cash-strapped Western governments commit to substantially raising defence expenditure, a similar dynamic is playing out in Saudi Arabia’s oil and gas sector, as Saudi Aramco maintains it heavy capex push despite reduced revenues
20 March 2025
Tariffs, sanctions and trade conflicts are upending the oil market, impacting crude differentials and shipping rates and creating uncertainty
20 March 2025
While advanced economies debate peak fossil fuel demand, billions of people still lack access to reliable and affordable energy, especially in the Global South
19 March 2025
Iran’s oil is caught in the crosshairs of support from China and Russia and US maximum pressure, with options becoming more and more limited
