House Republicans launch probe into SPR sales, export ban talk - report

Quantum Commodity Intelligence - US House Republicans will launch an investigation into what they say could be the "potential misuse" by the Biden administration of the nation's emergency oil reserves to lower gasoline prices, as well as White House considerations over a fuel-export ban.

The move by the Republicans on the House Committee on Oversight and Reform previews a more robust probe if the GOP takes control of the chamber after the November midterm elections, a development that would grant them the power to subpoena key administration officials, reported Bloomberg.

As well as attracting ire from within, the ongoing SPR releases have also been at the centre of the row between the US and Saudi Arabia, who have publicly criticised the policy, saying it will add to market uncertainty.  

Committee Republicans, in a letter sent Wednesday, said they were examining the use of the SPR by the administration amid a historic 180 million barrel release that began after Russia invaded Ukraine and culminated last week when the White House announced it was offloading the final tranche of 15 million barrels.

Exports

The Republicans also said in the letter to Energy Secretary Jennifer Granholm that it was seeking information about a possible export ban of refined petroleum products.  

"We are concerned that the president may soon impose an oil and gas export ban that will result in even higher gas prices, supply chain issues, global market upheaval, and reduced energy security for the US and our allies," said the letter, which was led by Representative James Comer, the committee's top Republican, and South Carolina Representative Nancy Mace. 

The Energy Department said it had received the letter.

"The SPR is a critical tool designed to address global supply disruptions, and as Putin's war continues to create upheaval to energy markets, the Biden administration, like administrations of both parties have done in the past, is using the SPR as intended -- to address supply disruptions and provide relief to American families when they need it most," the agency said.

Earlier this week, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman took aim at the US, albeit without directly referencing US policy, saying that some nations were using their emergency stocks as a mechanism to manipulate markets when its purpose should be to mitigate any shortages of supply.

"It is my duty to make clear that losing emergency stocks may be painful in the months to come," the minister said.