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President Donald Trump seeks to add seventy-five million barrels of oil to US Strategic Petroleum Reserve amid historic price crash
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- Authors
- Robert Schroeder
- Published
- Apr 20 2020
- Word count
- 229 words
From the article:
Three weeks ago:
US suspends plans to buy oil after funding is left out of $2 trillion stimulus package
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?
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.
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.