From Bloomberg. So... what's the emergency? These guys long DUG and DTO?
By Tara Patel and Grant Smith
June 23 (Bloomberg) -- The International Energy Agency
announced that it will release 60 million barrels of oil from
The IEA has coordinated the use of emergency stockpiles
twice since the agency was founded in 1974. The first occasion
was during the 1991 Persian Gulf War, and the second when
Hurricane Katrina damaged oil rigs and refineries in the Gulf of
Mexico in 2005.
That'll last us what? a week? maybe less?
That Libya is going to <cough> capitulate <cough>
This is damn foolish, Barry looks desperate.
This is why business will not reinvest, they don't know what the Gov't will do next. no plan at all.
That's 1.5 days of US consumption.
... but don't you know how NEWS is made ... perception is reality -- even if the FACTS contradict what the reality SHOULD BE!
In a few days, this will be a non issue and 96 will be the resistance level that you have to watch -- will it be breached?
But, but... I thought Saudi Arabia had the spare capacity to cover this! :rolls eyes:
Is this how they will fund our government?
So my guess is they will draw down an equal amount each month until Libya is sorted out, or until oil reaches the $70-$80 range the Saudis said they are comfy with.
I still bought some oil here, as I don't think it will be a one way street, and might backfire if it doesn't have a lasting effect.
They would never do this for political reasons... would they?
High oil prices and the resulting increase in the cost of gasoline have contributed to an economic slowdown and have put increased political pressure on Obama. https://www.washingtonpost.com/business/obama-ready-to-release-oil-from-petroleum-reserve-to-offset-mideast-turmoil-high-energy-use/2011/06/23/AGvFEJhH_story.html
High oil prices and the resulting increase in the cost of gasoline have contributed to an economic slowdown and have put increased political pressure on Obama.
Yeah, that's is Bobo.. deplete our Reserves when it's not needed. This is not dire.. it's more in the "Really Really sucks" phase and 30mil will last us 1.5 days as we use 20mil a day. 1.5 days .. what an asshat this president is.
We'd be wiser to stockpile more oil instead of hit the reserves..
I was going to start a new thread on this but then found this one. So, here is what I have to say:
Obama is at it again, rewarding the people who don’t save, who don’t have retirement plans, who don’t buy precious metals just to jump start his campaign.
As you are aware, all precious metals are taking a dump, along with the stock market and the price of oil. Why, some may ask. Well, in case you haven’t heard, he has announced they plan on releasing 60 million barrels of oil from the Strategic Reserves. Why do it now when oil prices have been decreasing? Well, it might drop the price of gas a little but it is sticking it to anyone who has money in the stock market, PM’s or 401k’s. But the guy living off the Government will be able to drive around more.
Another great idea from Obama. Destroy the productive and the saving people lives to help you make headlines like you are a Savior or something. Like this is really good for the American people? I hope we survive until 2012!
Here the rest of the story:
More than sad; however, this move makes me much more bullish on oil over the next two years than I was before. First of all, the Saudi’s just said that they would increase production to 10 million barrels of day on their own (from 9.3 million b/d), effectively ending OPEC as an organization. Because this didn’t do what the petulant children in charge wanted they resorted to this tactic. First it was speculators. Now it is supply and demand. What is it really? I’ll tell you what it is. They have no freaking clue what they hell they are doing. Just like The Bernank.
"I’ll tell you what it is. They have no freaking clue what they hell they are doing. Just like The Bernank."
One hat to ya!!!
Hey, lower prices means you can buy more with your paycheck.
Remember, this is all going...
I expected that something very similar to this would happen, and posted about it starting back in February. Specifically, that we would soon enter a stage where volatility would increase, paper price would fall, and physical premiums would increase. This has been accompanied by a decline in COMEX inventory and a rise in open interest.
This is literally a best case scenario for holders of physical.
Don't get caught without it in the month of July. There is a 50% chance of a COMEX implosion by the end of that month. The chance increases with each passing delivery month after that.