FBN’s, Energy Analyst Flynn: We Can’t Do Anything About Saudi, Russian Oil Cuts Because SPR Is Drained

On Tuesday’s broadcast of the Fox News Channel’s “Special Report,” FOX Business Contributor and Price Futures Group Senior Account Executive Phil Flynn stated that consumers will feel the rise in crude oil prices in the wake of Saudi Arabia and Russia extending production cuts, and noted that due to the low levels in the Strategic Petroleum Reserve due to releases from the reserve, “there’s not anything that we can do about” Saudi Arabia and Russia “trying to stick it to the United States” by slashing oil production.

Host Bret Baier asked, “[C]rude oil prices rising above $87 for the first time since November ’22. The last time oil neared $90, the U.S. Strategic Petroleum Reserve had 250 million more barrels of crude oil than it does. And if you look at the last three months, it’s a steady rise here. So, consumers are feeling it, right?”

Flynn responded, “They’re going to be feeling it, and probably more than ever. And it’s great that you pointed out the Strategic Petroleum Reserve, because the releases from the Strategic Petroleum Reserve, Bret, gave the market this false sense of confidence that everything was okay in the global oil market. By releasing that oil, though, they artificially lowered prices. They discouraged investment. So, U.S. oil production is starting to plateau at a time [when] it normally would be rising to meet demand. That’s not happening. That’s leaving a void. And now, Saudi Arabia and Russia are taking advantage of this, trying to stick it to the United States by cutting production, and there’s not anything that we can do about it.”

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