The oil in the strategic reserve is paid for at "yesterday's prices." Replacing it at current or future prices will only drive the price up.
tis true gunny, but today's prices are 20% lower than yesterday's prices, so we would be buying the replacement at lower prices....
also, i believe every time we released some of the reserves on to the market in the past, prices went down...thus the relief for us, but also....we repurchased the reserves at lower prices....
there may be other reasons not to release our oil reserves, but i do not believe that rebuying at a higher price is one of them, because i don't believe this will happen....
care