Ok so we got 660 m barrels in spr some of it sweet , some heavy
Leave aside the question of if refineries can use all of it - as many are configured for one type or the other , we will grant that everything is usable
The price of west Texas crude has fallen from 75 to 66 in a matter of a month ? Was the spr released during this time ? No . Why is it falling ? Maybe concerns around demand slowdown ? Hedge funds liquidating ? Risk parity funds ? General risk off ? No one knows
The crude oil market is global . And how much is global demand? About 110 to 120 million barrels per day - so how many days of demand is the spr ? 6 days !!
How much US shale produce each day ? 11 mm barrels ? Are we hurting saudis or are we hurting ourselves by releasing the spr , which in the best case scenario , Covers only 6 days of demand
And all of thinking - oh we will just trap it at home , I have news for you . Oil market is global and exports are now legal , how will you distinguish what oil is from shale and what is from spr ?
But hey , I can just MAGA !! And high five my fellow buddies on this forum and declare winning . Ignorance is bliss