Friday, July 30, 2010

We have 701 million barrels of oil in the Strategic Oil Reserve. Why can't we stop buying oil for a while?

If we just stop buying oil for a while there will be less of a demand and the price will go down. The oil suppliers in the middle east will have to sell us oil at a cheaper price if they want to sell thier oil.We have 701 million barrels of oil in the Strategic Oil Reserve. Why can't we stop buying oil for a while?
actually they planned on doing this a few months ago, but there is a chance it could actually raise prices. The US goes through a lot more oil than you think, and this reserve will not last long. Also, the oil producers will just wait till we run out, then they will be able to jack up the price because we would be totally out. Also, the US economy would suffer because many oil companies are US owned and operated. The price isn't determined by the suppliers, but bidders on exchanges. This is why prices go up in times of war and stuff, because supply is less regular and riskier.

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