Posted on 03/31/2022 7:14:34 AM PDT by Hojczyk
President Biden signing off on an oil release from the Strategic Petroleum Reserve (SPR) to cool elevated prices may have some effect, but not a ton, warns Goldman Sachs.
"Conceptually, such a release would help the oil market rebalancing in 2022, increasing supply by 1 millions barrels per day for six months, for example. This would reduce the amount of necessary price-induced demand destruction, the sole oil rebalancing mechanism currently available in a world devoid of inventory buffers and supply elasticity. This would remain, however, a release of oil inventories, not a persistent source of supply for coming years.
Such a release would therefore not resolve the structural supply deficit, years in the making," said Goldman Sachs energy strategist Damien Courvalin. "On net, such adjustments would lower our 2H22 Brent forecast by $15/bbl to $120/bbl, still above market forwards.
(Excerpt) Read more at finance.yahoo.com ...
Didn’t Obumber do this, then had to buy back at higher prices?
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