Why Oil Prices Surged Even After the Release of Strategic Reserves
This affects the entire country.
The article talks about how oil prices have surged past $100 a barrel, and an announcement by the International Energy Agency that 30+ countries would release a record 400 million barrels from emergency reserves hasn't done a damn thing to calm markets. Traders have recognized that figure covers only about 20 days of oil that normally goes through the strait, and the war is already two weeks old with no resolution in sight. They also realized the release of the reserves means the energy crisis caused by the war isn't imaginary or likely to end anytime soon, and that global leaders recognize the risk of a serious energy shock.
Analysts point out several compounding problems: drawing down reserves is slow and logistically complex, the U.S. can release at most 4.4 million barrels per day from its strategic stockpile, and even if shipping through the strait of hormuz resumed tomorrow, refineries that shut down would need at least two months to return to normal.
“No amount of storage can replace 20 million barrels per day of continuous flow,” said Edward C. Chow, a senior associate at the Center for Strategic and International Studies, a Washington think tank, and a former executive at Chevron.
Trump told Reuters he wasn't concerned about the price increases. Well, if he isn't concerned about oil prices, why is he desperately tapping into the reserves?
This affects the entire country.
The article talks about how oil prices have surged past $100 a barrel, and an announcement by the International Energy Agency that 30+ countries would release a record 400 million barrels from emergency reserves hasn't done a damn thing to calm markets. Traders have recognized that figure covers only about 20 days of oil that normally goes through the strait, and the war is already two weeks old with no resolution in sight. They also realized the release of the reserves means the energy crisis caused by the war isn't imaginary or likely to end anytime soon, and that global leaders recognize the risk of a serious energy shock.
Analysts point out several compounding problems: drawing down reserves is slow and logistically complex, the U.S. can release at most 4.4 million barrels per day from its strategic stockpile, and even if shipping through the strait of hormuz resumed tomorrow, refineries that shut down would need at least two months to return to normal.
“No amount of storage can replace 20 million barrels per day of continuous flow,” said Edward C. Chow, a senior associate at the Center for Strategic and International Studies, a Washington think tank, and a former executive at Chevron.
Trump told Reuters he wasn't concerned about the price increases. Well, if he isn't concerned about oil prices, why is he desperately tapping into the reserves?
Why Oil Prices Surged Even After the Release of Strategic Reserves
This affects the entire country.
The article talks about how oil prices have surged past $100 a barrel, and an announcement by the International Energy Agency that 30+ countries would release a record 400 million barrels from emergency reserves hasn't done a damn thing to calm markets. Traders have recognized that figure covers only about 20 days of oil that normally goes through the strait, and the war is already two weeks old with no resolution in sight. They also realized the release of the reserves means the energy crisis caused by the war isn't imaginary or likely to end anytime soon, and that global leaders recognize the risk of a serious energy shock.
Analysts point out several compounding problems: drawing down reserves is slow and logistically complex, the U.S. can release at most 4.4 million barrels per day from its strategic stockpile, and even if shipping through the strait of hormuz resumed tomorrow, refineries that shut down would need at least two months to return to normal.
“No amount of storage can replace 20 million barrels per day of continuous flow,” said Edward C. Chow, a senior associate at the Center for Strategic and International Studies, a Washington think tank, and a former executive at Chevron.
Trump told Reuters he wasn't concerned about the price increases. Well, if he isn't concerned about oil prices, why is he desperately tapping into the reserves?
0 Comments
0 Shares
39 Views
0 Reviews
