Save Strategic Oil Reserves for When They're Really Needed
Stored oil is a powerful weapon in the war of wills with Iran
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In the war of wills over Iran’s nuclear program, strategic oil reserves are a crucial weapon for the U.S. and others trying to keep Iran from developing nukes. Iran can’t win by embargoing its own oil because it needs to export more than its customers need to import. The existence of strategic oil reserves in the U.S., Europe, Japan, China, and elsewhere was a key consideration for President Obama in his March 30 decision clearing the way for sanctions on banks that aid the Iranian oil trade.
But it’s important to save strategic oil reserves for when they’re really needed. If reserves are drawn upon every time prices go up, eventually they will be gone, leaving no buffer to deal with genuine emergencies.