Trump praises high oil prices as US taps Strategic Petroleum Reserve to 1982 lows
President Donald Trump said rising oil prices are positive because “we make a lot of money,” even as his administration approved the largest emergency release from the U.S. Strategic Petroleum Reserve (SPR) in history. The Department of Energy will sell 172 million barrels — part of a coordinated Group of Seven and IEA release totalling roughly 400 million barrels — to ease price spikes caused by conflict in the Middle East after a US‑Israeli strike on Iran and subsequent Iranian retaliation. The SPR currently holds about 413 million barrels; the 172 million‑barrel sale would reduce reserves to levels last seen in 1982. The IEA says member nations hold over 1.2 billion barrels combined, so this release uses roughly one‑third of global emergency stocks. The release is expected to run about 120 days; Energy Secretary Chris Wright said the SPR could be partly refilled (around 200 million barrels) within a year. Brent crude moved back toward $100/bbl after the announcement. Lawmakers and critics pushed back on Trump’s remarks, arguing higher pump prices hurt ordinary consumers while benefiting oil executives and wealthy investors. Key figures: President Donald Trump; Energy Secretary Chris Wright; House members Don Beyer and Bonnie Watson Coleman. Key stats: 172 million barrels from US SPR; ~413 million barrels remaining pre-release; combined G7/IEA release ≈400 million barrels; SPR lows not seen since 1982; national average petrol ≈$3.60/gal (from ~$2.90).
Bearish
Large SPR releases to counter a supply shock typically aim to cap oil-price spikes, but in this case the measures coincided with a geopolitical escalation (Strait of Hormuz closure, attacks on energy infrastructure) that sustained risk premia. Higher oil and fuel prices raise inflation expectations and risk-off sentiment, which historically weighs on risk assets including crypto in the short term as traders liquidate volatile positions to cover energy-driven costs or margin calls. The announcement also signals increased fiscal and strategic pressure on reserves — drawing SPR to multi-decade lows reduces a key buffer against future shocks, increasing medium‑term price volatility. Past episodes (eg. 2022 Ukraine war draws) showed: initial policy interventions can temper crude rallies briefly, but persistent supply disruptions push prices back up and depress risk assets. For crypto traders: expect short‑term negative pressure (liquidations, correlation with equities weakening), higher volatility, and potential buying opportunities if risk assets oversell. Over the longer term, continued high energy prices and reserve depletion can sustain inflation concerns and monetary policy tightening risk, which may keep downward pressure on crypto until macro risks recede.