Headlines are crossing saying the White House is considering buying back SPR barrels when WTI crude falls below $80/barrel, according to a Bloomberg reporter.
I'm on the lookout for details but oil has recovered some losses on the headlines.
The problem is that whatever the White House tries, it will goose prices. Perhaps they could set some kind of floor and buy there but it's a tricky one to solve when there isn't a lot of spare capacity in the world.
By leaking this, I get the sense that the White House is trying to spur US drilling. There are some reports today making the rounds suggesting US production is flatlinging at about 1 million barrels per day lower than pre-covid levels.
The reporter is saying the admin "is reassuring oil producers it won't let oil prices collapse."
This is more bullish for producers than for oil. If you can put an $80 floor under oil, then you could get some additional spending.
WTI crude oil is at $87.08 from a low of $85.06.