Fact CheckThe Strategic Petroleum Trap
You would naturally think the safe bet is B. The reality is A. Prices frequently spike higher. This is the Geopolitical Risk Premium in action. Algorithmic traders view the emergency button not as a relief valve but as a panic signal. They assume the underlying global crisis is far worse than expected. This panic prices in a new reality immediately. Using the strategic reserve is a highly effective way to temporarily jolt the market. It functions less like a permanent economic fix and more like a high interest payday loan.