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Old October 30th, 2022, 03:20 PM   #27
Alex
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Location: SF Bay Area
Join Date: Jun 2008

Motorcycle(s): '13 Ninja 300 (white, the fastest color!), '13 R1200RT, '14 CRF250L, '12 TT-R125LE

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"Draining the SPR" is just intended to push the markets in a certain direction (when it does very little to the amount of oil actually being used/traded). Just as when OPEC announces they are cutting production - if you read the small print, what they are really doing is cutting production quotas - which they haven't actually met for months. The actual amount of oil being produced isn't affected by quota changes, if you stay producing underneath those quotas anyway.

These are just signals for the market about what might happen in the future to gas pricing, which then affects short-term trading on what gas pricing should be in the immediate future (i.e. now).

The SPR only holds about 400 million barrels of oil. US uses about 20 million barrels of oil per day. It's not some huge stash that will sustain us for years, or even months. It's about 20 days of oil - best case - if it ever gets drained from completely full of oil to completely empty.
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