CNBC's Croft: We Can't Release from Drained SPR, So We're Having to Hope Saudis Will Produce More Oil

On Thursday’s broadcast of CNBC’s “Squawk Box,” CNBC Contributor and Managing Director and Global Head of Commodity Strategy for RBC Capital Markets Helima Croft stated that because President Joe Biden can’t lower oil prices by releasing a large amount of oil from the Strategic Petroleum Reserve (SPR) because it’s at low levels, “they are having to rely on energy diplomacy” with Saudi Arabia in an effort to get the Saudis to provide oil relief.

Co-host Becky Quick asked, “So, we had thought that oil prices were going to be higher. We’ve kind of dodged that bullet. It’s been the one area where inflation hasn’t been really rampant. Are you thinking that we are in for higher prices for an extended period of time?”

Croft answered, “The challenge for the Biden administration right now is, they do not have up their sleeve probably another blockbuster SPR release. And so, they are having to rely on energy diplomacy. And you mentioned the G20, the question is, can President Biden try to secure additional oil relief from the Saudis as part of this megadeal that has been in the works? Negotiations have been ongoing for several months about a deal that would include Israel normalization, assistance for the Saudi civilian nuclear program, new security guarantees for Saudi Arabia. Can they get this megadeal across the finish line, and would it include some form of oil relief?”

Follow Ian Hanchett on Twitter @IanHanchett


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