But I just can't help myself

I just can’t help writing about oil. So today the markets are having more conniptions due to a 600,000 barrel difference from what was expected in week to week fluctuations. Meanwhile back at the ranch, a quick check of the current inventory in the US Strategic Petroleum Reserve shows it’s right on schedule to top the 700 million barrel mark by August. Total capacity is 727 million barrels and at the current rate it will be at 100% capacity in another 12 months, meaning another 2 million barrels a month will be available to the US market no later than this time next year. This also means that right now between private reserves and the SPR, the US has approximately 100 days import protection, so if everybody (Russians, Mexicans, Canadians, Venezuelans, Nigerians, assorted Arabs, the British, Norwegians, etc.) stopped shipping oil to the US, domestic production didn’t rise by a single barrel and demand slacked not one bit in the face of higher prices, we could last 100 days. So, in other words, if Hell freezes over we have 100 days to deal with it. That ought to put a 600,000 barrel discrepancy (roughly .06% of stockpiles) in perspective.

More on oil on my site Financial Options including The Secret Way to Play Oil.

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