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 ...
Shortest analysis ever needed: NOTHING!
Popcorn fart.
Not much.
A few cents for a few days.
It’s a meaningless gesture that will give the media something that they can gush over.
Prices may even go higher.
This blip is less than 3 days supply and is meaningless to gas prices.
so are the democrats in the Oil business now and investigate themselves ? LOL
15 dollars a barrel is not nothing.
It’s always been my understanding that the oil in the SPR is high sulphur sour crude, that is difficult for US based refiners to process. It really is a last resort supply, by design. We might even need to send it to Venezuela of all places to process it, because our refineries are already at capacity. Can anyone shed any light on these points? I may be wrong on all.
https://www.whitehouse.gov/live/
1:30 PM ET
President Biden Delivers Remarks on Lowering Gas Prices
President Biden Delivers Remarks on his Administration’s Actions to Reduce the Impact of Putin’s Price Hike on Energy Prices and Lower Gas Prices at the Pump for American Families. (NO MEDIA QUESTIONS UNLESS YOU SUBMIT IN WRITING AND WE PREPARE A CARD FOR BRANDON TO READ)
The White House
3:00 PM ET
Press Briefing with Director of Communications Kate Bedingfield (WHERE IS PSAKI - IT’S OVER A WEEK SINCE HER 2ND BOUT WITH COVID?)
The White House
I suspect some Dems made a good profit shorting oil futures on this one.
https://www.cnbc.com/2022/03/31/oil-markets-us-strategic-petroleum-reserve.html
And remember folks, this is oil we’ve already bought as taxpayers.
Now that it’s being wasted on the open market, we’re buying it again!
It means taxpayers foot the bill AGAIN when it comes time to replace that oil (at a higher cost) Biden is using as a political stunt
Lol…you took the word right out of my mouth!
Exactly ! Totally meaningless !
It also means that the oil reserve resupply will be in inflated dollars, costing much more .
Planned self-sabotage for the nation.
You expected anything else other than meaningless gesture from this administration ?
The reserve is there for the benefit of the democrats as they see fit. We can see the same with the way they treat our woke military.
Biden is using it as his personal gas station.
NOT what it’s purpose is. This is dumb, of course.
At a consumption rate of 13 Million bpd, this 180 M barrels is about a 2 week supply.
Crude futures dropped 5% on the rumor. That’s enough to make some good dough if you are tipped in advance.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.