How will this affect...

[Ivanovich]

http://news.yahoo.com/s/ap/20080516/ap_on_bi_ge/oil_reserve

I don't believe it's going to affect the price of oil, but I'm curious if any out there have an understanding on how it might impact our trade (im)balance?

 

[nazzdack]

?......Short-sell crude oil & buy gasoline and heating oil. It may put downside pressure on crude oil but the refined products should remain firmer. We'll see.

 

[Ivanovich]

Still, the halting of purchasing 76,000 barrels a day (is that right??) should put a nice dent in the trade deficit, no?

 

[nazzdack]

The trade deficit is irrelevant. The money that would have been spent to fill the SPR can be "squandered" elsewhere.

 

[amanda33]

Quote from Ivanovich:

Still, the halting of purchasing 76,000 barrels a day (is that right??) should put a nice dent in the trade deficit, no?

"The reserve is 97 percent full, holding 701 million barrels of crude."

That's about 2 months worth for the US.

 

[Ivanovich]

Quote from nazzdack:

The trade deficit is irrelevant. The money that would have been spent to fill the SPR can be "squandered" elsewhere.

You know what I'm trying to get at. Why are you giving me such a hard time on it?

 

[nazzdack]

Quote from Ivanovich:

Still, the halting of purchasing 76,000 barrels a day (is that right??) should put a nice dent in the trade deficit, no?

God no! You're badly assuming that government will refrain from spending that money somewhere else.