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The Conversation

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As the war with Iran continues, the world is rallying together to slow surging oil prices. The latest effort is a coordinated move by 32 countries, including the U.S., to sell 412 million barrels of oil from their strategic petroleum reserves over the coming week.

Energy scholar Scott L. Montgomery explains why the U.S. created its Strategic Petroleum Reserve, how it works and where it is. And he discusses what effect this massive influx of oil might have on prices – and for how long.

He also sounds a note of warning about the world’s ability to cushion future oil shocks if the war drags on and oil prices stay elevated or climb even higher, noting that this would leave the U.S. and other countries in a “highly vulnerable position.”

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Jeff Inglis

Environment + Energy Editor

 
The world is about to open up reserve oil supplies. Photo illustration by PashaIgnatov/iStock/Getty Images Plus

Over 400 million barrels will be added to the oil market soon – what are strategic reserves and what can they do?

Scott L. Montgomery, University of Washington

Nations’ stores of petroleum can dampen price shocks in the short term, but as reserve supplies dwindle, economic pain may continue.

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