Quote:
Originally Posted by BigAls87Z28
Oil reserves are at the highest its ever been. The US could release a 1/3 of the reserves and flood the market, price of oil would drop like a rock.
There are several factors to this record oil, dollar is one, but speculators have driven up the price of oil 50% while global demand for oil has risen about 3% with production matching it.
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US consumes 20,687,000 barrels per day according to EIA, and those numbers are most likely slightly outdated and the number is likely higher.
They also state that US has 20,972 million barrels of oil as a reserve as of 07. The figure has probably gone up but I'm gonna use real numbers because no one has provided different ones.
So if the US releases 1/3 of its oil reserves for public to waste on their SUVs, that would be 6990 million barrels of oil which would last us 337 days at the previously given rate of consumption. I would hardly call that FLOODING the market with oil.
You would lose reserves, and the price of oil would later go up, and we would be in even bigger hole that you are right now.
Maybe it's just me, but the numbers don't lie.