The federal government is about to do something intelligent: Buy low.
From Paolo Romero:
Amid low oil prices, the Liquefied Petroleum Gas Marketers’ Association (LPGMA) has supported the Department of Energy’s plan to stockpile ready-to-use fuel products and secure some of the country’s future requirements.
“Considering the historical volatility of global oil prices, it would make sense for government to take advantage of inexpensive oil and obtain at a bargain additional fuel supplies for use in extraordinary need,” LPGMA party-list Rep. Arnel Ty said.
The Association of Southeast Asian Nations Petroleum Security Agreement also encourages members to build extra stockpiles, Ty said.
He said due to a great global surplus, the price of oil has plunged 75 percent to around $30 per barrel since the middle of 2014.
He cited forecasts from a number of commodity analysts who expect the price of oil to fall to as low as $18 per barrel, before recovering to $60 per barrel.Bravo.
I do not know why we need to stockpile oil, but if we are going to, let us do it right.