Over the past few months, gas prices have been getting substantially better. This has caused many to speculate that inflation has peaked and that supply chain issues are finally easing. Hopefully, this is the case, but a factor that we cannot ignore is the fact that the US has been dumping their emergency oil reserves onto the market to cool down prices. The US has never done this before as this oil was reserved for extreme emergencies like an oil strike or a war. However, politicians have decided that easing oil prices are an appropriate use of these reserves. This has caused our emergency oil reserves to dip to 40-year lows, and at the current rate, the reserves won't last more than a couple months. Ideally, inflation and supply chain issues would have truly cooled down by that point allowing gas prices to stay low. However, this could also backfire if the underlying issues are not fixed. This could cause oil prices to skyrocket to even higher prices than we’ve seen this year. This video explains how the US has been cooling down gas prices by tapping into the US strategic petroleum reserves and the potential short-term and long-term consequences
Discord Community:
https://discord.gg/SJUNWNt
Timestamps:
0:00 - Emergency Reserves
1:19 - Countdown
4:19 - Rugpull
7:14 - Aftermath
11:07 - Gas Prices
Resources:
https://pastebin.com/DzgS0PBX
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