China Gets U.S. SPR Oil???

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#1 Thu, Jun 30, 2011 - 9:44am
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Black Hole Sun
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China Gets U.S. SPR Oil???

IEA Already Considering Extending Oil Release Period, Fireselling More Crude To China Tyler Durden's picture Submitted by Tyler Durden on 06/30/2011 09:01 zerohedge.com

and in the case of gasoline, the price has actually surged way above the decision day fixing. So what is an administration with no credibility to do? Why double down of course, and sell even more crude at firesale prices to the Chinese. Per Reuters: "The International Energy Agency could decide by mid-July whether the release of strategic oil reserves needs to be extended for a month or two, an official said." And there is that transitory word again: "Richard Jones, deputy executive director of the IEA, said he believed the release would be temporary since demand would likely drop in the fourth quarter." Well demand may drop, but the last time demand was actually relevant in price discovery was sometime in the 20th century. Welcome to the era of oil prices defined by monetary policy.

From Reuters:

"We do believe it could be temporary but we have to see how the market evolves. There could be other disruptions, for example, we are compensating for the losses in Libya," Jones said at an event in Mexico City.

A decision on whether to extend the release could be made around the third week of July, he said.

"It will be up to our member countries, they could decide to continue it for a month or two. I don't see that we'll need to continue it for very long because we see demand declining in the fourth quarter, so we think it's a temporary measure."

Sure, blame Libya. And if possible please keep antagonizing an already irrational OPEC sans Saudi, which can't wait to receive even loss for the oil it exports, and may take a few weeks to realize that a several day export embargo will generate a far greater return in the long run that continuing to kowtow and retreat, for the time being, in the latest war of attrition with the IEA.

Edited by: ¤ on Nov 8, 2014 - 5:06am
Thu, Jun 30, 2011 - 9:46am
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Black Hole Sun
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China gets U.S. SPR Oil?

IEA Already Considering Extending Oil Release Period, Fireselling More Crude To China Submitted by Tyler Durden on 06/30/2011 09:01 zerohedge.com

and in the case of gasoline, the price has actually surged way above the decision day fixing. So what is an administration with no credibility to do? Why double down of course, and sell even more crude at firesale prices to the Chinese. Per Reuters: "The International Energy Agency could decide by mid-July whether the release of strategic oil reserves needs to be extended for a month or two, an official said." And there is that transitory word again: "Richard Jones, deputy executive director of the IEA, said he believed the release would be temporary since demand would likely drop in the fourth quarter." Well demand may drop, but the last time demand was actually relevant in price discovery was sometime in the 20th century. Welcome to the era of oil prices defined by monetary policy.

From Reuters:

"We do believe it could be temporary but we have to see how the market evolves. There could be other disruptions, for example, we are compensating for the losses in Libya," Jones said at an event in Mexico City.

A decision on whether to extend the release could be made around the third week of July, he said.

"It will be up to our member countries, they could decide to continue it for a month or two. I don't see that we'll need to continue it for very long because we see demand declining in the fourth quarter, so we think it's a temporary measure."

Sure, blame Libya. And if possible please keep antagonizing an already irrational OPEC sans Saudi, which can't wait to receive even loss for the oil it exports, and may take a few weeks to realize that a several day export embargo will generate a far greater return in the long run that continuing to kowtow and retreat, for the time being, in the latest war of attrition with the IEA.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Thu, Jun 30, 2011 - 9:49am
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Well, I tried twice. Some of

Well, I tried twice.

Some of the ZH article wouldn't paste.

If you haven't read it there already I suggest you check the website out if your a newbie.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Thu, Jun 30, 2011 - 2:57pm
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Chinese? Makes No Sense

I really don't see any connection that ZH makes how or why this oil was for China. Will China get any? Maybe on the open marketplace. And it's not like it's made to sound in the article like all the oil is theirs and we are giving it away cheap.

For all we know, the U.S. / IEA release was for NATO's consumption ultimately, for the Libya fiasco. And to knock down the commodity complex of course as well, but they might just be short in their NATO stockpile and are killing two birds with one stone.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

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