Quote:
Originally Posted by finnbow
So, Trump's intervention in the energy market is a good thing even if the results are bad (increasing oil prices) while Biden's (e.g., opening up the Strategic Petroleum Reserve) are a bad thing even if the results are good (decreasing oil prices).
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If that's what you think, I can't help you.
Of course, it depends on the intervention, the goal, and if the intervention achieves to goal.
Biden's goal in releasing oil from the reserves was to have a near-term impact on gasoline prices. It had little to no impact on futures prices. Futures prices did take a dip in August, driven by reduced demand as China had another COVID lockdown. The fact that folks are driving less has helped bring down gas prices.
Back in April 2020 when Trump was involved in negotiations with Riyadh, there were days when the spot price of domestic crude was negative:
producers were paying to have the product stored as they ran out of holding capacity, and crude was selling slower than it was being produced. That trend was threatening the domestic oil industry. A production pullback stabilized both domestic and global crude prices. So, yeah, that one worked.