Here's the real story behind the record drop in America's oil reserves
The U.S. strategic crude stockpiles are dwindling at a record pace and are approaching their lowest in decades — but concerns about slimmer reserves may be overblown.
Steep drawdowns in recent weeks from the Strategic Petroleum Reserve, the federal government’s emergency supply of crude oil, have rattled some economists and investors. They worry that the U.S. could be left too vulnerable to another supply strain, such as a hurricane, and in a tougher spot if the war with Iran drags on through the end of summer.
“I look at the SPR at this point as a luxury, and as a piece of leverage,” said Jan Stuart, a global energy strategist at investment bank Piper Sandler. “We are an oil-exporting country. We have plenty.”
It adds barrels to a tight prompt-month market, helps smooth out price spikes and “it buys time,” Liu said. But it’s nowhere close to offsetting the lost physical supply if the underlying disruption persists, he added.
https://www.marketwatch.com/story/we-have-plenty-heres-the-real-story-behind-the-record-drop-in-americas-oil-reserves-9c8de9d5
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Not exactly sure I can share the optimism of Sandler. Prices came down a whole 20¢ a gallon this week in my town. Not exactly what we were paying before bumblephuck took us into an unnecessary war to cover up his SA of a 13 year old.
And Congress has to authorize money to buy more oil to replace what we are sending elsewhere.
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