Trump kills two birds with one stone: Stockpiling oil for bad times

Last week Saudi Arabia launched an economic war, nominally against Russia but probably against the US as well, by increasing their production of oil.

In an already glutted oil market that will drive down prices significantly.

That will hurt Russia which depends on oil for hard cash but it also hurts the huge new American fracking market by making oil too cheap.  For fracking to be economically viable oil has to be worth a certain amount and if it's not American companies will go under.

This is the same as when China deliberately sells stuff at less than they need to get to keep in business long enough to drive their competitors out of business and thereby establish a monopoly which will generate huge profits in the future.

It's considered to be unethical and illegal in the civilized world.

The big plunge in the market last week wasn't primarily driven by the Coronavirus but by the Saudi's declaring economic war.

Trump has taken a huge step to fight that Saudi attack by saying that the US will replenish its strategic oil reserve.  In order to ensure that America has the energy it needs during a crisis the US keeps large amounts of oil in known deposits which can be drawn on during a crisis.

By replenishing the reserve the US is suddenly creating a huge market for oil and thereby countering Saudi Arabia's attempt to drive down prices; at least for American energy producers.

But this isn't some stupid government subsidy since the oil will eventually get used at some time in the future; it's like saving for retirement.

While Democrats are spending all their time attacking Trump Trump continues to work for us.