Adding to that, I hadn’t realized we’d been filling the strategic petroleum reserve since August 2023. Much slower than it was drawn down.
It’s cheap; most temporal arbitrage is more expensive than fully depreciated salt caverns. Limits on how the SPR can affect prices include its volume (36 days of full US use if topped up), max discharge rate (22% of daily use), lag to market (2 weeks), and other producers adjusting to accommodate its drawdown.