Re:U.S. to release oil from reserves in coordination with ot...
by dragonwriter on Tuesday November 23, 2021 @03:00PM
(#29322583)
> Depleting reserve capacity does not increase the long term supply curve.
The intent is not to “increase the long term supply curve”, it is to increase short-run supply and mitigate short-term pricing pressure on fuel, and therefore transportation, and therefore all goods and services that are either transported or require the transportation of other people or goods in their supply chain, which is, approximately, everything.
It is an immediate-term effort to prevent additional inflationary pressure from fuel prices. There’s other venues for intermediate and, if necessary, long-term measures to control general inflation.
The intent is not to “increase the long term supply curve”, it is to increase short-run supply and mitigate short-term pricing pressure on fuel, and therefore transportation, and therefore all goods and services that are either transported or require the transportation of other people or goods in their supply chain, which is, approximately, everything.
It is an immediate-term effort to prevent additional inflationary pressure from fuel prices. There’s other venues for intermediate and, if necessary, long-term measures to control general inflation.