(aka: Slick Manipulations)
US Presidents tend to tap into the Strategic Petroleum Reserve to help bolster the economy, lower fuel prices during election seasons, or plug holes in the budget. This has been going on pretty much since the Reserve was started in 1977.
If you have been following world news, Saudi Arabia is taking actions that could start an oil price war with Russia. Oil prices have taken a steep dive over the past week or so. They are now at the lowest prices since 2008.
Today Trump ordered the US Department of Energy to purchase enough crude oil to fill the Reserve to capacity- approximately 92 million barrels.
This is expected to have a trickle down effect:
1. It will inflate demand for oil, causing the price to rise.
2. Seeing oil prices rise will help other investors feel more confident in the market.
3. As the stock market levels out, the general public will feel more comfortable and less fearful.
4. Toilet paper and milk will return to the store shelves.
Did you know the government was manipulating you with oil prices?
What are your thoughts on this strategy? Do you think it will work?