Biden Admin announced the release of 50 million barrels to calm oil market.
Recently, the Admin said they will do it again as necessary
I think and hope this article is misleading. The Admin was discussing companies replenishing the oil over time and that admin could take this step again. I hope that is what the Admin meant.
If the Admin meant they can release more to flood market in the short term, I would have a problem with that. OPEC meets this week. My guess is that they would slow output increases to offset the injection of oil. This is the difference between existing inventory versus supplier.
The strategic reserve is for emergencies. For example, British Columbia Canada cannot get oil from central Canada due to flooding taking out the rail lines. That would be a great example of using strategic reserves to help alleviate the problem.
US needs to be stock piling fertilizer right now and exporting it to offset EU problems with production. Otherwise, our food situation globally is going to be fvcked.
Recently, the Admin said they will do it again as necessary
I think and hope this article is misleading. The Admin was discussing companies replenishing the oil over time and that admin could take this step again. I hope that is what the Admin meant.
If the Admin meant they can release more to flood market in the short term, I would have a problem with that. OPEC meets this week. My guess is that they would slow output increases to offset the injection of oil. This is the difference between existing inventory versus supplier.
The strategic reserve is for emergencies. For example, British Columbia Canada cannot get oil from central Canada due to flooding taking out the rail lines. That would be a great example of using strategic reserves to help alleviate the problem.
US needs to be stock piling fertilizer right now and exporting it to offset EU problems with production. Otherwise, our food situation globally is going to be fvcked.
