What do you guys think the effects of the SPR’s throughout the world are on oil prices? The government spokespersons say there is no effect because the amount of buying is small, i.e., 70,000 to 100,000 bpd. But in a market environment where oil prices double when a refinery manager farts the wrong way, 70,000 bpd per country is huge. There’s well over a billion barrels in SPR’s throughout the world and that amount will only increase. The US alone wants 1.5 billion by 2029. What are your thoughts?
1.5billion maybe all that’s left in 2029.
SPRs are designed to cushion supply shocks. The U.S. SPR is supplied by product in exchange for royalty payments. I wouldnt look as “building sprs” as a reason to be bullish on oil prices even in the near term unless it was part of some sort of peak oil conspiracy “oil grab” theory … then I say, Woo Hoo!