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Page added on August 14, 2018
Analysts: SPR Release Won’t Lower Gasoline Prices
Even if the U.S. Administration decides to release crude oil from the Strategic Petroleum Reserve (SPR), American drivers are unlikely to see gasoline prices coming down, because U.S. refiners already have enough oil to run at maximum rates, and much of the oil products that would be produced could be exported, analysts briefed by Reuters say.
Last month, reports emerged that the Trump Administration was considering tapping into the SPR to try to reduce gas prices before the mid-term elections in November. Options being reviewed range from a test sale of 5 million barrels to the release of 30 million barrels from the SPR, Bloomberg reported in July, citing people familiar with the deliberations.
As of August 3, the SPR inventory stood at 660 million barrels of oil, including 254.6 million barrels of sweet and 405.4 million barrels of sour crude.
Various analysts who have spoken to Reuters think that even if a potential SPR release manages to bring crude oil prices down temporarily, this would not automatically mean that prices at the pump would also drop.
“It’s unlikely to have any measurable impact on the diesel or gasoline market in the United States,” Zachary Rogers, refining and oil products analyst at Wood Mackenzie in Houston, told Reuters. “There’s already enough crude to run at max rates,” Rogers noted.
According to Kenneth Medlock, a fellow in Energy and Resource Economics at Rice University, U.S. demand is not as high as to take in all the refined oil products.
And if an SPR release ended up as exports outside the U.S., this would lead to “a very negative reaction” among American taxpayers, Barry Worthington, executive director of the United States Energy Association, told Reuters.
For the week ended August 6, the average U.S. regular gasoline price was $2.852 a gallon, up by $0.474 from a year ago, EIA data shows. In the early days of August, the national gas price average was $2.87/gallon, which is the most expensive gas price seen in August since 2014, AAA says.
By Tsvetana Paraskova for Oilprice.com
30 Comments on "Analysts: SPR Release Won’t Lower Gasoline Prices"
MASTERMIND on Tue, 14th Aug 2018 7:40 pm
Can’t stop the blue wave coming!
Then we can impeach, imprison, replace!
makati1 on Wed, 15th Aug 2018 12:00 am
“…it is clear that both the Trump administration and the policy makers of the deep state are strongly concerned about what actions allies and enemies could take to overcome the pressure brought to bear by Washington on the issues of energy, Iran, and sanctions. This shows that the US is very fearful of de-dollarization, especially coming from its allies.
Bypassing sanctions with currencies other than US dollar, or creating creative finance structures that bypass the SWIFT payment system, are the only means of maintaining relations between countries in spite of Washington’s sanctions. The US strategy is limited in the short term and certainly harmful in the long term for US Dollar financial hegemony.
That Washington’s allies are even entertaining such possibilities places US financial hegemony at great risk in the long run….
…if there is something that worries the deep state, it is the long-term impact of tariffs, trade war, sanctions and impositions on allies; or, to put it most simply, de-dollarization….
The United States is in the terminal phase of its unipolar moment and is struggling to come to terms with the downsizing of its role in the world.”
https://www.strategic-culture.org/news/2018/08/14/end-of-us-unipolar-moment-irreversible.html
Slip slidin’…
MythBuster on Wed, 15th Aug 2018 12:59 am
makati1 — When is everybody going to dump the dollar like you’ve been predicting for years on this board? Right now, it looks like a lot EM currencies and economies are tanking, China included. Lots of people with money on the table losing confidence in EM and pulling their money out to put it into “safe haven” dollars. The facts, as usual, tend to directly dispute your severely warped world view. Looking forward to whatever feeble mental gymnastics you attempt to rationalize away this truth.
makati1 on Wed, 15th Aug 2018 3:30 am
Myth, it is being ‘dumped’ as we type. More and more countries are moving away from the USD and toward other currencies and methods of transfer. Even the IMF is working for the leveling of the dollar with its SDRs. Do you notice who is buying gold? Do you notice that the Us is selling and may not have much left? Gold is likely to be the backing for future money, not fiat promises.
This rash of US tariffs and sanctions is pushing the changeover even faster. At some point, likely in the next few years, the critical point will be reached and the Us will go down. It has to be leveled to make way for the neocon One World idea. Be patient.
makati1 on Wed, 15th Aug 2018 3:33 am
BTW: The coming Us stock market crash is likely to be the cliff over which the USD falls and never recovers. When? Soon.
makati1 on Wed, 15th Aug 2018 3:34 am
Is MythBuster a new swamp monster’s sock puppet? He sounds like it. lol
Anonymouse1 on Wed, 15th Aug 2018 3:52 am
Indeed mak, all these ‘new’ ……whatevers, all appearing at once it seems. And all, going…after you…again. Using…some…. rather….familiar canards.
When I saw that comment and how it was structured, that was the first thing I thought as well. Has sock written all over it….
makati1 on Wed, 15th Aug 2018 4:04 am
Mythbuster…How do YOU know what I have been doing here for “years”? I don’t recognize you as a regular here ‘for years’ or even days. Is this an alias? Or, are you another delusionist’ sock puppet? It appears so.
Cloggie on Wed, 15th Aug 2018 4:06 am
Langley working overtime…
makati1 on Wed, 15th Aug 2018 4:10 am
Anon, I don’t mind being a verbal target as words don’t hurt me. I can ignore them if I wish, as I have been doing lately. I don’t even read their immature, delusional garbage.
If they think their posts will end my America bashing, they are deluded in that area also. Americans deserve all of the bad publicity (truth) I can post. And there is far more of it than I can ever post here.
makati1 on Wed, 15th Aug 2018 4:13 am
Desperation, Cloggie. The USS US is going down and they are trying to mop up the water coming over the sides with buckets and sponges.
Davy on Wed, 15th Aug 2018 6:13 am
“makati1 — When is everybody going to dump the dollar like you’ve been predicting for years on this board? Right now, it looks like a lot EM currencies and economies are tanking, China included. Lots of people with money on the table losing confidence in EM and pulling their money out to put it into “safe haven” dollars. The facts, as usual, tend to directly dispute your severely warped world view. Looking forward to whatever feeble mental gymnastics you attempt to rationalize away this truth.”
Mythbuster, don’t mind slipslidin and his boy wonder Asperger anything that contradicts their emotional anti-American convictions is chided. These extremist can’t stand when their world view is busted by reality. Notice how Asperger immediately call you a sock. What else can he do you hit the nail directly. There is no arguing what you said. Good work and I hope you speak more. I try to be American critical here and balanced and fair on the economic issues but it is hard when you fight this stupid routine from the gangbangers.
print baby print on Wed, 15th Aug 2018 6:16 am
I think the demise of $ is coming , what does USA is trying is to pull the rest of the world with it , and it looks like it is going to succeed because they are all interconnected. It is unexplainable how you can sell toilet paper to others and get in return real goods ( oil food gold etc)
Davy on Wed, 15th Aug 2018 6:16 am
“BTW: The coming Us stock market crash is likely to be the cliff over which the USD falls and never recovers. When? Soon.”
I agree there is a correction coming for the US equity markets but it is unclear how far that will take the dollar down along with other currencies. The thing about this EM problem it is a dollar problem and will make the dollar problem worse. Our board dumbass anti-Americans like slipslidin and aperger want a win/lose scenario instead it will be a lose scenario.
Davy on Wed, 15th Aug 2018 6:19 am
“Mythbuster…How do YOU know what I have been doing here for “years”? I don’t recognize you as a regular here ‘for years’ or even days. Is this an alias? Or, are you another delusionist’ sock puppet? It appears so.”
Myth might not be the talking type slipslidin. He might be like you and change his name every few months. I don’t do sock puppets but I sure enjoy when you dumbasses get new blood in here and make you squirm. You dumbasses can’t stand those who peddle reality.
Davy on Wed, 15th Aug 2018 6:21 am
“Langley working overtime…”
LMFAO all the extremist trembling. What is the matter neder, a comment from new blood has you disturbed?
Davy on Wed, 15th Aug 2018 6:27 am
“Anon, I don’t mind being a verbal target as words don’t hurt me. I can ignore them if I wish, as I have been doing lately. I don’t even read their immature, delusional garbage.”
Sure , slipslidin, you try to ignore then you don’t ignore. You try to look tough then you whine. You generally come out and talk when your friends are here to walk you across the street with your extremism. We know how your extremist gang operates.
“If they think their posts will end my America bashing, they are deluded in that area also.”
Well you are right with the American bashing. You are admitting to be an extremist anti-American peddling an emotional agenda.
“Americans deserve all of the bad publicity (truth) I can post. And there is far more of it than I can ever post here.”
Wow, you really are opening up to what you are truly doing here. You are disgusting slipslidin and you have taken this blog into the gutter with your emotional agenda. Good thing I am here to moderate and neuter the worst of the distortions and the stink of the package it comes in.
makati1 on Wed, 15th Aug 2018 7:07 am
PBP, it is all about the old setup being slow to unravel. But, it is being forced to unravel by the Us’ use of USDs and trade as weapons in their war to control the world. Trumpet is killing off the old systems that supported the empire. And, about time.
Davy on Wed, 15th Aug 2018 7:16 am
“Futures Slide As Dollar Surges; Tencent, Yuan, Chinese Stocks Tumble”
https://tinyurl.com/y7y69zt5
“In light of all the turmoil we’ve seen out of Turkey and the subsequent contagion into other emerging markets, the dollar is pretty much establishing itself as the safe-haven currency,” said Bart Wakabayashi, Tokyo branch manager at State Street Bank. “If you are going to park your money somewhere to stay away from the turmoil, the dollar is going to be the currency of choice. And with the dollar surging, what spooked traders today was not so much Turkey but China, where the Yuan tumbled to new one year lows, with the USDCNH rising above 6.92 while the onshore yuan also fell below 6.900 per dollar, its lowest level since May 2017.”
“The strong dollar’s victims are of course emerging currencies, with many remaining under pressure despite the lira’s recent bounce. But the greenback’s rise has also pummelled euro and sterling.”
Davy on Wed, 15th Aug 2018 9:10 am
Translation: EU “whatever it takes” burger time. The Euro’s are up to their eyeballs in bad debt and the last thing they need is rotten turkey to foul the celebratory dinner. The old adage “when you owe me a little and your debt is bad it is your problem. When you owe me a lot it is my problem.”
“The Enemy Of My Enemy”: Snubbed By Trump, Erdogan Turns To Merkel”
https://tinyurl.com/yd8o7cxb
“Before Turkey’s president got caught into a growing feud with Donald Trump, Erdogan’s arch-nemesis was Germany’s chancellor Angela Merkel following a spat of the treatment of Europe-headed migrants which culminated with Germany pulling its troops from NATO bases in Turkey, while Erdogan urged Germans not to vote for Merkel. Well, may not anymore, because in a clear example of why the “enemy of my enemy is my friend”, Bloomberg reports that the two leaders broke the diplomatic ice and during a phone call today, Merkel said that the “Turkish economy’s strength is important for Germany.” They also discussed the current situation and agreed on a meeting between Treasury and Finance Minister Berat Albayrak and the German ministers of economy and finance.”
“So will Germany come in and rescue the struggling Turkish economy, even as Trump does everything in his power to torpedo it? While many hurdles remain, the Turkish Lira is clearly buying it, with the USDTRY trading near session lows, just below 6.10, far below the 7.23 level it hit late on Sunday.”
rockman on Wed, 15th Aug 2018 9:50 am
OK, finally back to the subject of the thread. First, the obvious: the US consumers do not buy oil, they buy refinery products. And much more refinery products are exported then oil, essentially about those made from 4 to 5 million bbls per day. Thus US consumers compete with foreign product consumers. If refineries buy SPR oil as replacement for some imports there’s no guarantee that foreign product importers will be offered those products for less then they are today. IOW the price of those exports will not decrease. If not then there will be little to no downward price pressure on domestic sales.
Outcast_Searcher on Wed, 15th Aug 2018 10:26 am
The SPR is supposed to be for emergencies. Unless there is a major storm that knocks out production and shipping for weeks, or a major geopolitical event that prevents a large amount of oil arriving at US refineries, for example, the SPR should NOT be used.
If people don’t like oil at current prices, then they’d better be buying HEV’s, PHEV’s, BEV’s, or learning to bike or take the bus, because it’s not like global demand for oil isn’t going to stop increasing any time soon.
MASTERMIND on Wed, 15th Aug 2018 10:44 am
Blue wave is coming! President Chump is going down!
Impeach that stupid traitor..Send him to the gulag..
Antius on Wed, 15th Aug 2018 12:02 pm
Looks like the ‘Evil British’ have saved the Lira – temporarily at least. It’s a funny old world isn’t it?
https://www.zerohedge.com/news/2018-08-15/international-currency-exchange-runs-out-turkish-lira
JuanP on Wed, 15th Aug 2018 12:19 pm
Delusional Davy “Sure , slipslidin, you try to ignore then you don’t ignore. You try to look tough then you whine.”
You are projecting again, Exceptionalist! LOL! You are such a sad fuck!
Davy on Wed, 15th Aug 2018 12:45 pm
“You are projecting again, Exceptionalist! LOL! You are such a sad fuck!”
Translation: Davy is right but I have to do what I can to help out the stupid senile old man. He is my fellow gangbanger.
twocats on Wed, 15th Aug 2018 6:38 pm
an SPR sale would likely have the opposite of the intended effect. ding-dong is an idiot so doesn’t understand these things. if SPR lot is sold then it has psychological impact of saying “there is a production shortfall”. price action would be inverse-classic sell the rumor, buy the news
twocats on Wed, 15th Aug 2018 6:47 pm
ding-dong is seeing the global economy seize up and is grasping at straws. gerrymandering, voter suppression, purging voter rolls can only get you so far. better hope the russians are ready to hack.
MASTERMIND on Wed, 15th Aug 2018 6:54 pm
21st Century NNR Scarcity – Blip or Paradigm Shift (Clugston 2013)
The “Squeeze” is On
Picture a vise tightening around the collective skulls of humanity in a relentless, remorseless “squeeze”.The handle of the vise turns at only 1/1000th of a revolution per day, which causes incremental pain that is almost imperceptible on a day-to-day basis. Over a period of 10 years, however, the vise handle makes 3+ complete revolutions; over 20 years, 7+ revolutions; and over 30 years, 10+ revolutions. While nobody can predict the timing with certainty, somewhere along the way humanity will crack..
The sad irony is that through our unsustainable natural resource utilization behavior – i.e., our continuous utilization of enormous quantities of finite, non-replenishing, and increasingly scarce NNRs – it is we ourselves who are turning the handle! The saddest irony is that we have no choice – in order to perpetuate our industrialized existence, we must persist in our unsustainable natural resource utilization behavior, thereby continuing to turn the handle!!
We are the hapless perpetrators of our own demise.
Increasingly Scarce and Expensive NNR Inputs > Slowing Economic (GDP) Growth > Moderating Material Living Standard (Per Capita GDP) Improvement
And as we “roll over”
Permanently Scarce and Prohibitively Expensive NNR Inputs > Economic Collapse > Global Societal Collapse
https://www.scribd.com/document/386142927/21st-Century-NNR-Scarcity-Blip-or-Paradigm-Shift-FINAL
MythBuster on Wed, 15th Aug 2018 8:12 pm
makati1 — You know the saying: Money talks and bullshit walks. Right now, the money is talking by selling out of EM currencies and buying into U.S. dollars. Sure, I read all the hype just like you do — Russia, China, Turkey, Venezuela — all trying/wishing to get away from King Dollar, or so the mostly unbelievable news stories say. I’m sure the truth is much more complex than what is being presented. The reality is the rapidly rising dollar, for now. Like you, I do not doubt but that an economic crash is going to take America down a notch or two, probably a lot more than that, but when America goes down the rest of the world goes down too. Your absurd notion that America is going to crash and burn while China and the rest of the world enjoy a new era of economic dominance without the pesky Americans to interfere is just a big crock of manure. BTW, I used to post here fairly regularly a long time ago, but insane diatribes and regular obnoxious idiocy from you and others drove me away. I’m just passing through, and seeing as how I despise you and your idiocy more than most, I thought I’d throw a little “wrench of truth” into your path and watch you trip over it. Just for old time’s sake.