If you enjoy the content at iBankCoin, please follow us on TwitterNEW YORK (CNNMoney) — As U.S. sanctions on Iran tighten and gas prices reach record levels, it is becoming more likely that a release of oil from the U.S. Strategic Petroleum Reserve is in the works. Yet analysts aren’t convinced tapping the SPR is a good idea.
Administration officials said Friday that reserves from the SPR were taken into account when they determined that oil markets could handle the loss of Iranian oil.
Even before the tighter sanctions were announced, there was talk the administration was working with European countries on a plan to tap oil reserves in both the United States and Europe. The rumors have already pushed global oil prices down slightly, although they remain over $120 a barrel.
Still, analysts are skeptical about what impact tapping the SPR would have on prices.
Joined Nov 11, 2007
31,929 Blog Posts
the mkt should dictate the price, but i think we (the people) r being fucked . r country is sic with oil but we dont persue it. we need more refiners but dont build them. WTF. there is no need to open r resurves.
I don’t understand why this is even an issue. There are so many bigger problems than whether or not they flood the market with 12-18 hours worth of oil. How about drilling some more instead of doing environmental studies for the next 5 years (or was it 3) and building that damn pipeline.
But I agree with razorsedge, on some level we are being fucked. If the US pursued all out energy independence, oil prices would crater. Might create a handful of jobs along the way too with the massive amount of infrastructure that would be required.