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Relative to daily US/global petroleum demand, the stategic oil reserve really isn't that big. I don't think it will cause a noticeable impact in prices.
by missedthecue 4y ago
Relative to daily US/global petroleum demand, the stategic oil reserve really isn't that big. I don't think it will cause a noticeable impact in prices.
- eloff 4y agoWith an inelastic good like oil, small changes in supply can cause big price swings. The reason is people don't curtail their use much as the price rises.
- rwcarlsen 4y agoIt's not the magnitude of demand that affects price - it's the price elasticity - the demand and supply curves matter. Demand for petroleum (e.g. gas, etc.) is very stiff - so small changes in supply can have large impacts on price.