What is the purpose of the strategic oil reserve if not to prevent market manipulation?

Which is going on now?What is the purpose of the strategic oil reserve if not to prevent market manipulation?
You got it in one...market manipulation...I'll just add, most likely at the Saudi's ';request';





EDIT--I see the propaganda machine is working it's magic by some of these answers. If you people really think we are running out of oil, please let me sell you a bridge in Brooklyn.What is the purpose of the strategic oil reserve if not to prevent market manipulation?
The purpose is so that the military has fuel for the use in national defense, in case of a war and a shortage.
The above posters are correct, first and foremost it's for our military in the event we go to war w/a country that has market manipulation over our economy.





Only problem is the strategic reserve would only supply about 2-3 days of our oil needs...of course we wouldn't be driving, turning on our lights, heating our home or going to work if the situation came to light that our oil was supplied only from the strategic reserve....that's more of a doomsday scenario though.
One good purpose would be to ensure that we had enough oil in the event that we were cut off from foriegn sources temporarily- until we pound them to regain access = )





Where is the market manipulation? It would be nice if OPEC would ship more oil but then it would be even nicer if the far left got out of the way and allowed us to drill for the massive reserves we have on our own soil and on the continental shelf not to mention allow us to build new refineries which is a larger problem- all can be done in an environmentally friendly way.
Outstanding Question; Well, let's see last time it was used was in 2004, yes happened to be the Election year, and for over one year prices had almost doubled, and gov was under pressure for over a year to allow dipping into reserves to stabilize the market. But bush had refused. Then suddenly around September emmm, i forget , oh it was almost one month prior to Election, that bush decided to do that.


Market was flooded and prices down almost $1.5 to $2.00


people all happy and loving it , it was a good time and we had a fantastic election????????? Didn't last long how ever, ended right after election . And the prices up again and so on ,,,,,,,,,,,,,,,,,,,,,???


So i think the purpose is for people to fill up the tank so they can go and vote ??????????????





My Best Regards.
Gee no wonder it is seen as a political wedge..





when the guy that politicized his own Mother's death used it to say he was bringing down prices..


when it was actually timed between winter and summer supply demand surges..





when in reality he actually depleted the SOR in the wag the dog folly of bombing Yugoslavia..and prior to the end of his Presidency.. like the entire arsenal of Cruise Missles left to be replenished by the next guy





it has nothing to do with market manipulation..


which if is happening now..is not a new phenomena





do a key-word on OPEC..analyze the impact and impetus of Hugo Chavez and take a course on International or Macro Economics
To have a supply of oil available for short term shocks like int he case of Katrina, and in the event that we go to war and out oil supply is cut off, so that our military and economy can still function. It is not designed for long term market injections.
Eh? The strategic oil reserve is to buffer against serious supply events. However, the US government has always used it to manipulate the market.
To answer your question;





The strategic oil reserve is for times of National crisis, which is not happening in America today.
The name Strategic Oil Reserves says it all, it's for the defense of the nation should supplies be cut. Trouble Maker is correct, we can't refine it fast enough. The reason the market is so easily manipulated is because we consume too much, we cut down consumption and we will drive the cost down. Simple supply and demand.
Un-refined oil is the problem . We have storage tanks filled to capacity and not enough refinery production .
Clinton tapped into the national reserve to lower gas prices.. so the market CAN be manipulated with it... traditionally it was meant to be of use in say... a war like WW II ... but in todays world it is far less practical for such a use. Just look at Iraq... we supply our troops with fuel right out of that nation.
I'm not positive but I believe that the strategic reserves are for military use.
it has a point besides that - if a war broke out where the strategic oil reserve was actually needed - it would be nuked in the first 20 minutes. But it comes in handy during Katrinas - the original purpose is to keep the economy from crashing during an oil crisis.