US Oil Producers Fail to Produce

[Suppa Hobbit Mage]

Besides, it can always be extended.

Well, not really... because those reserves are at 1987 lows. And you didn't answer my question, are we only using those 45M barrels in the US?

[Seran]

And you didn't answer my question, are we only using those 45M barrels in the US?

I don't know, go answer your own question. This ain't Google bitch.

[Suppa Hobbit Mage]

I don't know, go answer your own question. This ain't Google bitch.

If you don't know, please explain your "math" where you state the 45M barrels is the equivalent of 64 days.

Or were you just gaslighting and know nothing again?

[Seran]

Stock market extended it's recovery, while oil saw a significant drop down to $115 a barrel following Powell's announced it's 75 basis point increase of the benchmark interest rate. Meanwhile, Biden announced a further stabilization of the domestic oil situation with further organized SPR releases. Less liquidity in the market and the price of oil suffers as traders are forced to pare increase costs for their unscrupulous trades. Odds of a recession? Up. Stagflation? Our current way of life as a result of a /very/ healthy jobs market, combined with wage growth and inflation resulting energy prices getting retarded due to Putin's invasion of Ukraine.

[Seran]

If you don't know, please explain your "math" where you state the 45M barrels is the equivalent of 64 days.

Or were you just gaslighting and know nothing again?

Feel free to look up the average annual import of Russian oil and divide that from the announced SPR release. Then feel free to spend the next hour trying to dance your way around facts.

Or you do the usual Conservashit cop out when they can't figure out a rebuttal and just start screeching incoherently.

[Suppa Hobbit Mage]

Stock market extended it's recovery, while oil saw a significant drop down to $115 a barrel following Powell's announced it's 75 basis point increase of the benchmark interest rate. Meanwhile, Biden announced a further stabilization of the domestic oil situation with further organized SPR releases. Less liquidity in the market and the price of oil suffers as traders are forced to pare increase costs for their unscrupulous trades. Odds of a recession? Up. Stagflation? Our current way of life as a result of a /very/ healthy jobs market, combined with wage growth and inflation resulting energy prices getting retarded due to Putin's invasion of Ukraine.

Just gotta quote this for later.

[Suppa Hobbit Mage]

Feel free to look up the average annual import of Russian oil and divide that from the announced SPR release. Then feel free to spend the next hour trying to dance your way around facts.

Or you do the usual Conservashit cop out when they can't figure out a rebuttal and just start screeching incoherently.

Again, 45m barrels of oil, the US imports a certain amount from Russia. But if you do the math that those 45m barrels aren't held domestically, it doesn't work. And you don't know the answer. So dance around that fact.

[Methais]

I don't know

This is the first honest thing you've ever said on here.

If you don't know, please explain your "math" where you state the 45M barrels is the equivalent of 64 days.

Or were you just gaslighting and know nothing again?

Of course he is. And of course he doesn't.

[Furryrat]

Stock market extended it's recovery, while oil saw a significant drop down to $115 a barrel following Powell's announced it's 75 basis point increase of the benchmark interest rate. Meanwhile, Biden announced a further stabilization of the domestic oil situation with further organized SPR releases. Less liquidity in the market and the price of oil suffers as traders are forced to pare increase costs for their unscrupulous trades. Odds of a recession? Up. Stagflation? Our current way of life as a result of a /very/ healthy jobs market, combined with wage growth and inflation resulting energy prices getting retarded due to Putin's invasion of Ukraine.

Just gotta quote this for later.

Seriously! It's like a puzzle, I love to hate that I love puzzles.

Key takeaways that demonstrate a complete lack of understanding:

1 - This is not a lemonade stand on the corner of Main and Elm. Benchmark futures and derivatives are time-based and anticipatory.
2 - The IEA requires the US to keep 90 days imports worth of reserves in the SPR. Any over-release must be repurchased on the open market AT MARKET PRICE.
3 - Wage growth and low unemployment IS INFLATION. The Fed is literally by mandate now forced to adopt policy to INCREASE unemployment.

If you carry credit card balances or have an ARM, money evaporated today!

[Seran]

Seriously! It's like a puzzle, I love to hate that I love puzzles.

Key takeaways that demonstrate a complete lack of understanding:

1 - This is not a lemonade stand on the corner of Main and Elm. Benchmark futures and derivatives are time-based and anticipatory.
2 - The IEA requires the US to keep 90 days imports worth of reserves in the SPR. Any over-release must be repurchased on the open market AT MARKET PRICE.
3 - Wage growth and low unemployment IS INFLATION. The Fed is literally by mandate now forced to adopt policy to INCREASE unemployment.

If you carry credit card balances or have an ARM, money evaporated today!

2. Umm, no? The IEA treaty requires it's member countries to keep 90 days worth of NET imports within the reserve. The US is one of 6 IEA member countries who is a NET EXPORTER and not required by treaty to hold stocks. The coordinated release of oil was a massive boon to industry and our country, and the sale was actually as much an EXCHANGE for FUTURE DELIVERIES as it was a sale. There is no legally mandated timeframe for stocks to be returned to the SPR. According to a May 2022 report, the average price for the oil within the SPR was $29.70 per barrel.

3. While you're correct that wage growth CAN result in COST-PUSH inflation, corporations CHOOSE when/if those increases are pushed off to customers. For example, Taco Bell has increased it's nationwide wages north of $14.00 per hour, yet their menu prices have scarcely changed despite that amount vastly exceeding minimum wage in areas. This is an example of a corporation allowing it's PROFITS TO SHRINK in order to preserve demand.

On the flipside, Big Oil on average produces oil at an average cost of $35 per barrel. While it resells at $117 per barrel. For those Big Oil conglomerates who also have refining capacity, they refine and resale the products at the equivalent profit of $155 - $275 PER BARREL of oil just at the wholesale rate. Big Oil collectively made the choice to increase their prices WELL AND BEYOND what the traditional profit margin is for oil distillates and are raking in RECORD BREAKING PROFITS.

Get your facts straight.