I Keep Making This Argument About Oil And Gasoline & Keep Getting Shot Down

[Simeon Salus]

6. That remains to be seen, but Google's AI says this boilerplate

"Low gasoline prices are primarily a result of the global oversupply of crude oil and weakened global demand, factors which often correlate with, and can even signal, broader economic slowdowns, rather than being a direct consequence of a strong or weak U.S. economy in isolation."

I could accept this explanation. Signaling a broader economic slowdown. And they've been in drill-baby-drill mode.

"The U.S. has achieved record production levels of nearly 14 million barrels a day." At low prices, too. Right now oil is less than $58 a barrel.

If oil is so cheap, wouldn't it make more sense to buy elsewhere now to hold our production for when prices are higher? This is when we should be filling the national reserve, when oil is cheap, right?

Replenishment?
Google AI says:

"* Direct Purchases: The Department of Energy (DOE) has been purchasing domestic crude oil for the reserve, aiming to buy at a price of $79 per barrel or less. However, purchases were canceled at times in 2024 due to rising oil prices."

"*Exchange Returns: Oil that was previously loaned to private companies during supply disruptions is being returned to the SPR, often with a premium of additional oil."

"*Canceled Mandated Sales: The administration has secured the cancellation of 140 million barrels of congressionally mandated sales that were scheduled through 2027 to pay for government programs, thus preventing further depletion."

That last one looks sketchy.