Why The Market Didn't React To The Latest SPR News

On Monday, the US Department of Energy announced that it will begin buying crude oil to restock the Strategic Petroleum Reserve (SPR), the level of which hit a multi-decade low last year following the release of stocks from the reserve when crude prices jumped to over $120. The announcement was not really a surprise as Energy Secretary Jennifer Granholm had effectively told lawmakers last week that it was coming, but even so, the market reaction, basically a big yawn and shrug of the shoulders, was interesting, and it set me thinking about the…