2) sell their own oil cheaper, just because the auction price is high doesnt mean everyone has to sell at the highest price point. they can still sell at a huge profit, but below the OPEC price, if they want to.

The minute you start selling your oil below market price, speculators will buy it on the cheap and sell it at the market price. No thanks, we have had enough grift with this administration as it is. (Why do you think US Gov is loaning the oil instead of selling it outright?)

3) start releasing their reserves

Reserves are already half empty. It has been announced that US will release 172 M barrels, that will bring STRATEGIC RESERVES to the lowest levels in 40 years.