Seems to me that if the price gets too low, we should be talking about filling up the Strategic Petroleum Reserve.
By my estimates using the most recent data, we could purchase all of Saudi Arabia’s 300,000 bpd excess capacity for the next 10 weeks thus providing some stability to the oil markets. We could then sell it later once the kids are through bickering.
We would be buying low and selling high. Smart move, right?
Nope, you have to move the product on pipes, they cost money. You have to ship the product on boats, they cost money. We have our oil, it’s cheaper to put OUR oil in reserve.