Canary LLC Chief Executive Officer Dan Eberhart has reportedly criticized President Joe Biden's administration for its failure to replenish the Strategic Petroleum Reserve, or SPR, at a time when oil prices were low.
What Happened: “The train has left the station with the Saudis and OPEC cutting [production], and the Biden administration missed kind of a golden window when oil was in the 60s and 70s, too, to replenish the SPR,” Eberhart said, according to Fox Business.
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Oil prices rose last week after The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, trimmed production by 1.16 million barrels per day, beginning May, in a surprising move.
Oil analysts and economists have indicated for weeks that gas prices are also feeling the pressure following the OPEC+ move, the report said.
“I can’t stress enough how missing the window to replace the Strategic Petroleum Reserve is just really bad for our national security and really bad for consumers. The administration has left us completely unprepared,” Eberhart said.
Oil Prices: The Canary CEO also believes oil prices are going to surge significantly by the end of the year. During Wednesday afternoon Asian trading session, West Texas Intermediate, or WTI, futures expiring in May rose 0.25% to trade at $81.73 per barrel. The contract was trading close to $67/barrel level in mid-March.
The United States Oil ETF USO closed 1.88% higher on Tuesday while the Energy Select Sector SPDR Fund XLE ended 0.95% higher.
“They had an excellent opportunity when the price was somewhat low and they did nothing,” Eberhart said. “It seems to me we definitely have a Goldilocks scenario for oil exiting 2023 at $100 a barrel or higher. I think that’s inevitable at this point,” he added.
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