Marc Chandler mentioned in the last post that there has been some chatter about the Trump Administration tapping the US Strategic Petroleum Reserve supply to get oil prices down. Oil is an important issue as we head toward the end of this business cycle. And I want to put it into the context of secular supply-demand balance issues.
The SPR conundrum
Here's what Marc wrote about the SPR:
It is clear from Trump’s tweets that the high price of oil and gasoline is on his radar screen. He has harangued OPEC, though the immediate boost to oil prices seems to at least be partly related to geopolitical developments in which the US plays an important role, such as potential loss of Iranian output, the collapse of the Venezuelan economy, and the civil war in Libya. Poor investment decisions, corru...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.