SPR Constraints Dominate

Because the reserve is already at its lowest level since 1982 and a final 40 million barrels were recently offered, investors may focus on the limits of the policy tool rather than the immediate barrels. The exchange could either be tightly constrained to preserve emergency capacity or expanded if storm damage proves worse than expected.

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.