3 ms·
There are many problems. First and foremost, the strategic oil reserve was designed to make the US more resilient to a 1973-style oil embargo. Whatever is going
by krona 4y ago
There are many problems. First and foremost, the strategic oil reserve was designed to make the US more resilient to a 1973-style oil embargo. Whatever is going on in the US right now pales in comparison; the drawdown is simply a political ploy, a superficial appeasement, bread and circuses. The sale of the oil to offshore refineries of a strategic enemy proves this, does it not?
- jonnybgood 4y agoThat strategic enemy is overpaying for it. That's why it's going to them.
- sangnoir 4y ago> First and foremost, the strategic oil reserve was designed to make the US more resilient to a 1973-style oil embargo Unlike 1973, the US is now a net-exporter of oil. Since a meaningful OPEC oil embargo on the US is all but impossible[1] - then it makes sense for the strategic goals to evolve from "avoid shortages" to "stabilize price shocks". > The sale of the oil to offshore refineries of a strategic enemy proves this, does it not? It only means domestic refineries interested in that grade are at capacity, or were able to source it elsewhere for cheaper. China could full well push up the global price when buying from "elsewhere" too. Oil is a single global market, there is no logical way if lowering american crude prices while global prices are high. That will just lead to price arbitration until there's an equilibrium. 1. Simplified by ignoring domestic refiners' & exported crude type mixes