RE:RE:RE:From CJ board at ceo.ca@ dllscwbysfn - Somebody may be able to post some empirical data showing a correlation between the "world" price of oil and the inventory level of the SPR, in which case I would defer. In the absence of any data though, I'm still skeptical that a release or an addition to the reserve has any lasting impact on the price of oil.
There's no doubt that a release creates some localized short term price dislocations - and that's the intent - but the exogenous factors influencing the world price mitigate any long term change in price.
In layman's terms again, the supply/demand dynamic doesn't change when a person fills up their gas tank. It's only transferring supply from the gas stations tank to the cars tank. Aside from the GDP generated from the transfer. the supply/demand function doesn't change until the gas is consumed.