quote: Politicians will always be politicians. Instead of realizing that the Strait of Hormuz issue + incoming global oil shortage won’t be resolved even after the SPR release, they are opting to buy time. Time the world doesn’t have, no matter how sizable the SPR is. It’s like throwing bottles of water at a burning house. It’s not really going to do anything unless you solve the underlying issue. The dilemma the world faces today is that the hefty inventory surplus has now turned into a deficit. China, which held a large crude oil surplus, is now buying crude. The world no longer benefits from the 4 to 5 million b/d reduction in Chinese crude imports. What was once seen as a headwind for the crude oil market is now turning into a tailwind. And despite many analysts pointing to higher Strait of Hormuz oil flows, the return of Chinese crude buying is the same black-box fundamental variable as the lack of buying. If China buys the crude, which caused the Strait of Hormuz flow to increase, it has no relevance to the rest of the world. China is its own variable, black-box-in, black-box-out. | (WCTW) Releasing SPR Now Is Like Throwing Water Bottles At A Burning House https://www.hfir.com/p/wctw-releasing-spr-now-is-like-throwing