Posted on 04/20/2020 3:38:57 PM PDT by abb
President Donald Trump said Monday the U.S. is "looking to" add as many as 75 million barrels of oil to the Strategic Petroleum Reserve. Trump spoke after an historic day in the oil [cl.1] markets, in which the May WTI crude contract closed at -$37.63 a barrel, a one-day drop of 306%. Trump said he was considering the move "based on the record low price of oil," and that the action would "top it out." Speaking at a White House press briefing, Trump said, "we'd get it for the right price."
(Excerpt) Read more at marketwatch.com ...
I hadn't thought of it at the time, but of course that's the case. It wouldn't surprise me to see taxes on gasoline actually go up.
This practice was born out of necessity due to the Clinton Tax Bill from the early 90's of Taxing Inventory On Hand.
Some people here on FR were pushing that non-sense just a few years ago.
It’s not too long til the gas is gone
Pure water is all dried up
Then we won’t be the only ones
Crying in our empty cup
— “Call to Arms and Legs,” Head East, 1977
As I understand it he is looking at some type of payment-in-kind. The SPR effectively rents space and takes payment in oil. Last time I looked there was about 77MMBbls of outage roughly half Light Sweet and half Heavy Sour. You can look it up by gong to the SPR website.
They dumped to about -$37 yesterday (closed above -$30)...case of a lot of folks trying to leverage a chance to make money off bad news and many got caught with their pants down around their ankles...futures are sitting just above 0 this morning.
Thank you.
Blue states tend to slap tax after tax on gas. So even if the price of gasoline drops to near zero, it will still be around $2 a gallon in blue states like Connecticut, New York, New Jersey...
Works out as a bit of stimulus.
The airlines can’t store JP fuel for more than a couple years.
He’s buying low...
That reminds me, I need to go get gas.
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