Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Since making a price top on March 21, crude oil prices have been correcting in a move lower. Such a move is the perfect act to restore complacency about low oil prices, the better to set up conditions for the next up wave.
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