Goal of USPRI: To stabilize the world's crude oil supply & demand within a price range that seeks out the long-lost true supply/demand price with a market-driven mechanism that puts the world's United Strategic Petroleum Reserves to work for the long-term benefit of the general public, oil producers and industry. USPRI is a variation of the 'Price Band Mechanism' employed by OPEC a few years ago to keep speculators from driving oil prices back down toward $10 per barrel. It works in both directions as a stabilizer and a natural counterweight to any Market Power.

Strategy:  It is in the producers', industry's and the consumers' best interests to keep crude oil prices relatively stable. This can best be done by providing a counter-weight to speculators that drive the market far past where its normal limits would otherwise be. USPRI would increase liquidity while dampening volatility, and provide longer-term price stability which would allow for much more efficient future. Initially, 2 billion storage barrels of oil could be used in a 'Price Band Mechanism' Agreement among the US, EU, Japan, China and possibly others. World's Strategic Petroleum Reserves: There are currently over 4 billion barrels of oil in countries all over the world that could be linked together. The more participates, the greater the deliverabilty and the greater the counterweight against any Entity trying to exert Market Power, either up or down. The Agreement would automatically sell into the market, or purchase from the market, physical barrels of oil, the volume of which would be based on the price of oil on any given day, as follows below:
  
Premise:                                   US Commits  -  700 Million Barrels
                                                  EU Commits -   700 Million Barrels
                               China and Japan Commit  -  700 Million Barrels
                   USPRI        Total Commitment  -  2.1 Billion Barrels

Price Band Mechanism:  Target Range  -  $55 to $65 per barrel
 
To begin with, since the world price of oil is far above the target range, a price is set $10 above the target range at $75 per barrel and assigned a deliverability volume of 10 million barrels per day (US-3.3 million; EU-3.3 million; Asia-3.3 million). Prices then drop in $1.00 and 1 million-barrel increments down to the target range of $65 to $55 per barrel. When oil prices are at $66 or above, crude oil supplies are sold out of the USPRs; between $55 and $65 no oil is bought or sold; when prices drop to $54 or below, crude oil supplies are bought and delivered into the USPRs as follows:
 

Price         Barrels Sold        Price         Barrels Bought
               (per Day)                          (per Day) 
$66            1 million           $54            1 million
$67            2 million           $53            2 million
$68            3 million           $52            3 million
$69            4 million           $51            4 million
$70            5 million           $50            5 million
$71            6 million           $49            6 million
$72            7 million           $48            7 million
$73            8 million           $47            8 million
$74            9 million           $46            9 million
$75 or above  10 million           $45 or below  10 million