Is the US government speculating in oil commodity trading?

Question

Is the US government speculating in oil commodity trading?

Answer 1

The US government is not speculating in the oil markets.

The government may buy oil futures but these are not for trading but rather for future date deliveries.

The government is not smart enough to trade in any market, however, when the government gets involved in any market they manage to s***w it up.

You can be sure, they are not in the oil market.

Answer 2

The US Gov does not speculate on securities, nor do they trade commodities. They are a government, not a broker.

What the US does do is buy oil to fill the  Strategic Petroleum Reserve (SPR). It is said to be full. Bush had been adding to the SPR years ago and CNBC has reported that the average cost to the US tax payer for oil in the SPR is $10-15 barrel (bbl).

http://www.spr.doe.gov/

The US Gov does have a monetary policy that does buy and sell dollars to help protect the economy. It's a little complicated. See links for more.

http://en.wikipedia.org/wiki/Monetary_po...

http://www.federalreserve.gov/monetarypo...

Answer 3

With tax dollars or with their own (personal) investments?

While I don't think any public funds are involved, it would be silly not to invest your own money when you have (limited) control over markets and media.. don't you think?