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> otherwise why is the US running down its strategic reserve? Because it keeps domestic oil prices low which keeps an electorate happy. The government can’t fo

• roenxi 4y ago
  That sits in conflict with the idea there are lots of people who want to sell the US oil though, does it not? They don't. The US dollar isn't exciting enough for them to go out and pump oil. It isn't obvious that the US firing up the printing presses would suddenly make them excited at the thought because it isn't like that gives them a better deal. The US has the same capability to get them goods, services and assurances before & after the printing. And unless the electorate are very stupid (an option, I suppose) they will note that at some point they will be paying even higher prices if the SPR is refilled. It'll be even worse than it would be right now.
  • vineyardmike 4y ago
    > They don't. The US dollar isn't exciting enough for them to go out and pump oil. They do, in fact, pump oil for US dollars right now. They obviously have an incentive for prices to rise, and they’re a cartel. OPEC colluded to raise prices. Of course, we also have treaties that say when the do sell their oil it’ll happen in USD. > they will note that at some point they will be paying for even higher prices Yea but that’s ok when it’s not an election year and inflation isn’t raising other expenses. Or, just play chicken and hope that you can last until the next political party takes office, then they look bad for raising prices. > it will be even worse Not if it’s done slowly at a time when the demand is lower or supply is higher.