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.
Crude prices rose on news that the Organisation of the Petroleum Exporting Countries had suspended talks on increasing production quotas by 500,000 barrels a day.
Opec said it would only resume negotiations if the oil price hit $60 a barrel.
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