In October of 1973 the members of the Organization of Arab Petroleum Exporting Countries, led by Saudi Arabia, proclaimed an oil embargo targeted at nations that had supported Israel during the Yom Kippur War.
The embargo led to the price of oil rising nearly 300% in the United States, and the formation of the Strategic Petroleum Reserve (SPR) an emergency stockpile of petroleum maintained by the Department of Energy.
President Biden has authorized the release of much of that capacity to reduce the price of gas at the pump, causing the level to drop (precipitously) to less than 450 million barrels today—its lowest level since 1984.
Critics have questioned whether it’s wise to reduce the stockpile during rising geopolitical tensions, while others point to recently falling gas prices as proof that the drawdown was necessary – and worked. Those saying it was necessary haven’t been tracking where it was actually sent, have they… (Chart from chartr.co)
