RE:World oil SPRsI believe that everyone is now aware that international petroleum inventories are at or below 5 year levels and sinking fast.Taking Inventories out of SPR's is akin to desperate people maxxing out their credit cards. Good only if serious plans are made going forward to rectify the situation. To date, I have seen little if any effort by any western leaders to increase overall energy supply.Until we see evidence of some very serious investments in petroleum infrastructure, there will be only one direction for prices and that is upward.
As a side note , we are all aware of how Petroleum companies decrease their forward cash flows from existing reserves at 10 % per year in order to arrive at a net present value NPV10%
Those calculations are completely out the window now. Reserves are worth many times more than the petroleum companies are reporting IMHO