The current administration has suggested the idea of releasing one million barrels of oil from the country’s strategic reserves to ease the energy crisis we’re enduring.
The unfortunate part is, that one million barrels of oil per day will only offset approximately 4% of our country’s daily consumption.
Will it help? Maybe…
Historically, when the government has released reserves, price typically dips on the news.
But after the knee jerk reaction to the news fizzles out, the market goes back to doing what it was doing before.
And that typically presents a “buy the dip” opportunity.
The Value of Energy
The inflation crisis we are enduring is really reaching across all spectrums of our costs of existence.
However, oil is necessary to generate, facilitate and transport everything we consume on a daily basis.
Perhaps the administration halting the completion of the Keystone pipeline turned out to be a vital mistake for our independence and national security.
So, the plan now is to release our strategic reserves that we had filled when the price of oil went negative in 2020.
That means that when we refill those strategic reserves, we’ll likely be paying a whole lot more with our tax dollars to do so.
Regardless of your view on politics, our prior administration had accomplished something that this country has never done before… energy independence.
“Green new deal,” windmills, solar, electric… none of these individually or together can match the value in oil-based energy. If you didn’t know, now you do… firsthand!
Here to Stay
Oil-based energy isn’t going anywhere in our lifetimes. I don’t care what anyone says. If it’s the call of my career in financial publishing, so be it! I’ll own it forever.
Our country consumes approximately 21 million barrels of oil on a daily basis, nine million of which get burned every day in transportation alone.
The other 12 million barrels are consumed in everything else that requires energy day in and day out.
There isn’t something you do, or somewhere you go, or something you consume or even touch that doesn’t require oil-based energy for it to exist.
If a nation could have only one thing… that one thing must be energy independence.
One million barrels of oil per day released from our strategic reserves is like putting a Band-Aid on severed limb… It’s just not going to work.
Take the Next Step
This sector of the market is my specialty. I’ve been trading it for about a decade. Many told me that I was trading a sunsetting sector… Energy was dead and had no future.
Well, it appears they were mistaken. Energy is and always will be the future.
If you’d like to learn more about my approach, I highly encourage you to check out my premium trading service, The Speciale Report, which focuses exclusively on the crude oil markets.
We trade it in the futures, ETF and options markets, all of which give members the opportunity to trade at their comfort level.
That’s the beauty of The Speciale Report’s trade ideas… We accommodate all styles of traders. There’s really something for everyone.
Rules to Live By
“The mind is its own place, and in itself can make a heaven of hell, a hell of heaven.”
― John Milton
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.