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Al_Jazzera t1_j0k13ee wrote

We shouldn't have to replenish the strategic reserves. In the current era of oil instability, it might be a good idea to have that bad boy topped off. Why we went and burned off a nice chunk of it is as baffling as it is infuriating. Why are we buying stuff we already had?

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batman8390 t1_j0k5ueh wrote

What type of strategic purpose do you want us to save it for other than increasing the supply of oil when prices are high?

The reserve apparently only holds enough oil to cover our imports for a month or two anyway, so it’s not like we can depend on it for long if we are cut off.

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Al_Jazzera t1_j0k94ub wrote

It's there for emergencies not knocking a few cents off fuel, the savings weren't drastic. We bought it cheap and we're replacing it at a higher price. I'd prefer a little bit of reserve than half of that.

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XJ347 t1_j0k9emc wrote

... That's the point of it. To sell off when prices are high to lower the price.

The price atm is actually reasonable so we can slowly refill the stockpile. Note we are BILLIONS of barrels down, we are slowly buying it back now that prices have dropped. If they drop any more we would buy even more.

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Al_Jazzera t1_j0k9tkb wrote

At a pretty small savings at the pump, add to which a war between Ukraine and Russia with a nutcase at the helm with nukes. Not a likely scenario, but a possibility. We really could use that if something really pops off, but hey 10 cents on a gallon of gas is a pretty sweet option too.

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hitman2218 t1_j0kesbm wrote

The impact doesn’t end at the gas pump. There’s a ripple effect throughout the economy.

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Al_Jazzera t1_j0ky8w4 wrote

Obviously, but it doesn't have that much effect.

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thefugue t1_j0m3vr4 wrote

Well by that argument there probably would never be a time you’d condone the reserve’s usage outside of war- which it isn’t usable for as it’s simply sold as crude on the open market for private refining. It is literally only used to impact prices.

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captainhaddock t1_j0pc78q wrote

Biden sold oil when it was expensive and the economy needed it. Now that the price has come down, he's buying more to replenish it. The US government actually made a profit. Fiscal conservatives should be ecstatic.

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Al_Jazzera t1_j0rnbcn wrote

We’ll see if we turned a profit when we buy back the oil that we used. Selling it made an impact, but not a significant one. We drew down in:

  • 1991 During the Gulf War

  • 2011 Supply disruptions in Libya and other countries.

  • 2005 In response to Hurricane Katrina

We are drawing down now because the economy is not on fire. It’s not going to be amazing all the time, but it’s not like we’re going into the Great Depression.Does it constitute an emergency? Like a critical one? Petroleum prices are high because a madman is trying to reinstate the Soviet Union and doing a pretty shit job of it, thankfully. Would the idiot use nukes? Wouldn’t even have to. Shit popping off in another territory triggering Article 5 sending oil prices into the stratosphere. Might be nice to have another 30 day supply of a critical-ass commodity. It didn’t happen, but if it dropped petroleum 15% and we racked in 15%, would it make sense to sell that commodity under the current conditions. It’s like selling a fairly new tire for a fairly worn tire and being excited that you could order some Taco Bell.

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