The doubling of the SPR is a minor factor. Oil is traded on a futures basis. Ask yourself this, why are professional traders buying future oil contracts at these high prices?

What's on the horizon that will affect supply?
What's on the horizon that will affect demand?
What's on the horizon that could possibly change those answers?

$200/barrel is definitely a possibility given the way I answer those questions.

>According to the author, the real issue is the quality of the oil they are using to fill the reserve
>
>"Of course, no one is saying that the strategic reserve isn't necessary. Verleger, for instance, says the administration should consider selling off sweet crude and buying cheaper sour crude to fill the reserve. And Hutchison and the Republicans point out that the SPR now has 25 percent more oil than when Bush took office."
>
>>Boy that's a tough one. I see both sides. There is the economy and price at the pump issue, and then there is the very real threat he voiced:
>>
>>"One of the things al Qaeda would like to do is blow up oil facilities," Bush said. "Understand, we're in a global market. An attack on our oil facility in a major oil-exporting country would affect the economies of their enemy--that would be us and other people who can't stand what al Qaeda stands for.... And, therefore, the [strategic reserve] is necessary, if that's the case, to be able to deal with that kind of contingency."
>>
>>
>>>>Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.
>>>>
>>>>Has anyone tried forcasting lower prices?
>>>>
>>>>
>>>>http://biz.yahoo.com/ap/080506/oil_prices.html?.v=12
>>>
>>>Or, is the Bush admin helping prop up oil prices?
>>>
>>>http://news.yahoo.com/s/usnews/20080505/ts_usnews/stockpilingourwayto120perbarrelcrude
>>>
>>>Nah, they would never do that!