But what of the SPR?
An emailer asks:
"There is one extra detail that keeps gnawing at me, relating to the oil pullback:
I am trying to get good numbers on the oil additions to the strategic petroleum reserve. From what I see, it is maintaining one-off demand for 500,000 to 1 million bpd. I hear that these purchases will slow or stop soon (summer?) so I conclude that if this is true, it will affect the demand/supply equation and the resulting price of oil. It could cause an unexpected kicker down and really pull in believers during an economic slowdown before oil prices resume their growth, especially if it ends up as a popular news story." -DM
Here is the 411 on the Strategic Petroleum Reserve:
"Only about 100,000 barrels a day go into the United States reserves out of worldwide consumption of 82 million barrels. The United States consumes about 20 million barrels of oil a day, or about a quarter of global consumption, so at its current level of about 671 million barrels, the reserves would provide the equivalent of just two months of crude imports." - Cryptome
Do the math: 100,000 barrels per day stored out of a daily consumption of 20 million is approximately 0.5% (1/2 of 1%) -- whileit may have some impact on the margins, it is a relatively insignificant factor.
Incidentally, there is a lot of good info on the SPR at Cryptome.
UPDATE: April 28, 2005 10:52pm
Apparently, Petrol deliveries are still scheduled right through August 2005
TrackBack URL for this entry:
Listed below are links to weblogs that reference But what of the SPR?:
maybe this is of help to you:
I stumbled about it when looking for material to write an own piece about the SPR
Posted by: Toni Straka | Apr 28, 2005 1:31:05 PM
The comments to this entry are closed.