But demand for oil is also a factor in the market, and it’s widely expected to grow this year.
“It’s just the rate of that growth that is in question,” said Matt Smith at data and analytics firm Kpler. He said much of that question comes down to China, the world’s biggest oil importer. As its economy has reopened, China’s been buying more oil, but not much more, according to Smith.
“People were expecting multiple millions of barrels per day of demand growth coming through from them, and we’re just not seeing that,” he said.
It is criminally absurd that they/we (the US govt) didn’t buy staggered futures contracts when they were priced [much] lower a few months ago. I thought they were doing it, but it turns out they didn’t. Had they bought those contracts, oil would be delivered each month into the SPR to replenish it, but the price would have been the lower price of those futures contracts in late 2022/early 23.
You can find gas under $3 in Austin. I remember gas in the $2’s back in the late 80s early 90s. Honestly, it’s absurd that we seem to think that 30 years later the price is “high” when it’s just a double in 3 decades. I don’t get it.
[old man voice] Young whippersnapper. Back in the day, I’d get 3 or 4 gallons of gas for a buck. [old man]
OK. I didn’t buy it, my parents did. And I think I still have a jean jacket lying around somewhere with a patch bemoaning gas at $1 a gallon. And the uproar over that! The old mechanical pumps were not built to handle a price over 99.9 cents per gallon. It was the Y2K problem of the day. And the workarounds for that. Set the price on the pump at 1/2 the actual price, then double it. In your head. Without a calculator. Oh the horrors! Or drop the dollar from the price, then look at the amount of gas dispensed and add that to the displayed price.
What if the balloon goes up in Taiwan? Are our strategic reserves adequate?
Previously oil was released just before midterm election, not politically motivated of course, to lower gasoline prices after going hand in hand to Saudi Arabia & Venezuela and being laughed at by those countries. And someone forgot to reload the strategic oil reserve in case of a needed repeat. Make one wonder who is minding the store?
Why would you assume the US wont get it for a good bit lower later on? What is so pressing about right this moment? Nothing we are going into a recession. The dollar and western currencies are still appreciating internally.
I do not get why the reserve needs to be replenished right this moment. In that light why assume anyone has made any sort of mistake? Because some lower down figure in the press has had the spotlight put on them? Okay you listen to just anyone. Or because some under secretary wants a headline? Okay you are used by just anyone.
Or is it because??? What must the strategic reserve be full right at this moment? BTW wasn’t the draw down only 50% or some figure in that ballpark?