SCHORK: Today's Dismal Jobs Report Makes Strategic Oil Reserve Release More Likely


Photo: Bloomberg

Top oil analyst Stephen Schork tells us today’s disappointing jobs data makes a release of the country’s strategic oil reserves probable.”The numbers are so poor that it does increase the likelihood” of the White House tapping the reserves, he said. Mitt Romney will almost certainly criticise the President should gas prices reach $4 by their first debate in early October, he added.

Gas prices have increased 26.5 per cent since last month, according to GasBuddy, and now stand at $3.81 a gallon nationally.

Reuters reported today the President had met with oil market experts Thursday to discuss the move (Schork says he was not one of them). 

But Schork was quick to add that the higher prices have nothing to do with crude fundamentals and would only provide short-term relief.

“The issue is not a lack of crude oil,” he said. “It’s lack of gasoline. We have crude, and we have lack of refining capacity.”

Shut-ins related to Hurricane Isaac continue to weigh on product prices, he said.

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