11 votes

President Trump seeks to add seventy-five million barrels of oil to US Strategic Petroleum Reserve amid historic price crash

4 comments

  1. [4]
    skybrian
    Link
    From the article: Three weeks ago: US suspends plans to buy oil after funding is left out of $2 trillion stimulus package

    From the article:

    Trump said he’d like Congress to approve any action. Last month, Congress left plans to buy oil for the SPR out of the $2 trillion stimulus package.

    The president called negative oil a “short-term” phenomenon and said, “this is a great time to buy oil and we’d like to have Congress approve it.” He also said “at a minimum” the government would charge for storage in the reserve.

    Three weeks ago:
    US suspends plans to buy oil after funding is left out of $2 trillion stimulus package

    2 votes
    1. [3]
      skybrian
      Link Parent
      The timing seems off, unfortunately, and it seems like it would be smarter to arrange so you don't need an act of Congress to make a trade? Maybe the Fed should be buying and selling all the time,...

      The timing seems off, unfortunately, and it seems like it would be smarter to arrange so you don't need an act of Congress to make a trade? Maybe the Fed should be buying and selling all the time, like the treasuries market?

      I wonder how much the expenses change based on how much you store?

      1. [2]
        Algernon_Asimov
        Link Parent
        The timing is exactly right. You always buy stuff when it's on sale! And when it's something that doesn't go off, you buy it when the price is low and put it aside for later.

        The timing seems off,

        The timing is exactly right. You always buy stuff when it's on sale! And when it's something that doesn't go off, you buy it when the price is low and put it aside for later.

        1. skybrian
          (edited )
          Link Parent
          It was apparently on sale today, for May delivery. The price for June delivery is $20. Which is still pretty good, though. I'm thinking the Fed would have gotten the lower price if they were in...

          It was apparently on sale today, for May delivery. The price for June delivery is $20. Which is still pretty good, though.

          I'm thinking the Fed would have gotten the lower price if they were in charge. We probably wouldn't have seen this blip in prices at all.

          Edit: I guess there's some speculation that the same thing could happen next month? But, wouldn't the market see it coming? I guess they didn't this time, though.

          2 votes