Trump mulling releasing 5 to 30 Mill Barrels

(edited)

If trump wanted to just lower the prices of oil, he would just need release the SPRs, and from what I see, this will be the greatest and quickest impact on oil prices. I mentioned this already in an earlier post, but I wanted to show some updated links on the matter. The stories below mention that they want to see how that impacts the oil prices. By the way the SPRs contain more than 700 Mill Barrels, probably about 730 Mill barrels of oil. Right now the price of WTI is about $70.xx. The average price of the SPRs is less than $30. So if Trump wanted he could force the price of oil down to the 62.5, before hitting the 50s, (indeed my first target), if he so wishes.

https://www.bloomberg.com/news/articles/2018-07-13/trump-said-to-mull-tapping-u-s-oil-reserve-as-pump-prices-rise

https://www.cnbc.com/2018/07/13/trump-reportedly-considers-tapping-emergency-oil-supplies-to-tame-crud.html

Edited by Top Oil Trader
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Strategic reserve contains 660 million barrels. To release 30- 50 million barrels would not mean much unless it was consistent. You've got to remember, daily world production is around the 90 million barrel mark.

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The US releases batches of oil from SPR all the time. in fact, there are bills that require periodic sales. it is unclear whether this would be in addition to those mandates.

https://www.eia.gov/todayinenergy/detail.php?id=35032

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You are right, it is not much, this is why its just a test. If it has some effect, they will release as much as they need to, to make the prices go down, to whatever they think is appropriate.

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It has had an effect on prices just mentioning the sell-off of as much as 30 million barrels ... (or more)

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