OPEC oil cuts mean higher gas prices: Kevin Book
Strategic Petroleum Reserve is an oil insurance policy, Book says
{{#rendered}} {{/rendered}}Clearview energy partners' Kevin Book explained how OPEC's cuts lead to higher gas prices on "Special Report."
KEVIN BOOK: Higher prices. OPEC is a big supplier to the market. They've decided they're going to cut. Some of the barrels are cutting are actually aren't being produced so they said 2 million barrels per day less. It's probably closer to about 950,000 barrels per day less, but translate that to what it means in your gas tank. It's about a quarter a gallon.
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Well, what it means is that our safety nets getting smaller, we're using it. Now, there's an argument to be made for using it, but you have to replenish it and the problem is our Strategic Petroleum Reserve is an oil insurance policy and the time to buy insurance is when you don't need it. Refilling it would mean taking oil out of the market. You don't want to do that when the market's tight.
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