What are your thoughts on Releasing oil from SPR


What are your thoughts on Releasing oil from SPR

It seems that the politics involved say that it is no longer important. They've been drawing about 100k bbl/day.

I'm not quite sure how I feel about this, especially considering Venezuela (and other hot spots). And even if prices hit $100/bbl tomorrow, it would still take a year for the oil to flow from the oil patch in the US.

Sure, there is a "glut" in the oil market, but it's only about 1 million bbl/day extra in supply, if at all. Demand may have consumed all that extra supply and/or OPEC may have eliminated it. It may even be a 1 million bbl/day deficit going into summer. It's likely the glut will be gone very soon.

It feels like a money grab by the politicians and a way to keep oil prices low when OPEC is starting their supply constraints.

Thoughts?

Submitted April 12, 2017 at 11:38AM by MadComputerGuy
via reddit http://ift.tt/2puaAAk

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