In response to a recent letter regarding our oil going to China. A lot of people don’t realize that oil is a commodity and has to be sold at auction on the commodity market. Certainly Senator Charles E. Grassley, R-Iowa, who has been a senator since 1980, knows how the commodity market works and, obviously, Fox News is well aware. Instead of taking a hit against President Biden, they could have explained to their viewers how the commodity market works.
President Biden released a certain number of barrels to be sold at auction. The seller is obligated to take the highest bid. There were 16 bidders who were approved to bid on the oil. Once the oil is sold, the seller has no say in where the oil goes.
The Biden administration is releasing oil from an emergency supply of crude oil, stored in underground salt caverns along the Gulf Coast, that was first set up in the 1970s. Presidents have occasionally tapped the reserve to mitigate the disruption from an international event, such as the spike in oil prices caused by sanctions imposed on Russia for its invasion of Ukraine.
In a July 5 article on oil from U.S. reserves being sent overseas, Reuters reported, “Cargoes of SPR crude were also headed to the Netherlands and to a Reliance refinery in India, an industry source said. A third cargo headed to China, another source said.”
These bidders had contracts they had to fulfill and the oil is going to their customers. “Oil is a commodity traded on the global market, and while the United States government does not control oil and gas companies, the commodity the industry sells or the market, the Strategic Petroleum Reserve remains a critical energy security tool to address global crude oil supply disruptions,” said the Department of Energy in a statement this month, adding that the emergency release from the strategic reserve had helped “keep our economy running and mitigate the pain Putin is causing at the pump.”
Regarding the incident at the border with Haitians trying to illegally enter the U.S. The pictures reported on TV brought many comments from Americans. “It’s horrible what you saw. To see people like they did, with horses, running them over, people being strapped, it’s outrageous,” Biden said at the White House, referencing a series of photos and video showing mounted Border Patrol agents grabbing Haitian migrants trying to cross into the U.S. “It’s clear from the investigation that decisions made by some of the agency’s leadership, and the lack of appropriate policies and training all contributed to the incident,” Customs & Border Protection Commissioner Magnus said. “But there is no justification for the actions of some of our personnel, including unprofessional and deeply offensive conduct.”
Approximately 2,000 Haitian nationals have been sent back to Haiti on a total of 17 repatriation flights organized by the Department of Homeland Security, Mayorkas said. An estimated 8,000 returned to Mexico voluntarily and more than 5,000 are being processed by the Department of Homeland Security to determine if they should be placed in immigration removal proceedings or expelled through a public health law known as Title 42, Mayorkas said. The border issues have been going on for years and years.
Miriam Tudman lives in Athol.