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Originally Posted by dach95
What good was opening the US reserves
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On the off chance that is more than a rhetorical question, the purpose is to (partially) offset the short-term reduction in supply caused by Katrina. Most of the current spike in gas prices is not directly caused by any real shortage -- it is partly in anticipation of a shortage (gouging, if you like), but mostly a result of panic buying as evidenced by the subject of this thread. It's like a run on the bank: it's not having too little money that drives the bank under, it's the irrational, immediate demand on it. If the millions of gallons pumped into vehicles and gas cans in the past two days were sitting in underground tanks and dispensed on a normal basis, most of the price increases would be much less severe.
The fact is, nobody knows what the long-term supply picture looks like, and won't know until divers check out the underwater damage to offshore port and pipeline facilities.
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