Funny how oil traded down well b4 this announcement. Did someone know and short into it ?….vampire squid anyone ?
Let’s see if this changes anything for equities….
Oil sells off below $90 pb on initial news. Now back above $90 (10:30am) and the U.S. will initially release 30 million barrels.
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It wont matter 60 million or 100. These folks never learn.
Not Someone…. some large entity or oligopoly or country. They would have had to short a hell of a lot to overtake the entire demand.
Simply the dumbest use of the Strategic Oil Reserve possible, pandering to the whiney bitches that somehow think this will make any difference at all. Pure dumb fuckery.
Will this increase refiners’ crack spreads?
17 hours of global consumption…..lol
http://www.businessinsider.com/newsflash-the-iea-only-released-17-hours-of-global-oil-consumption-2011-6
Obama’s willing to pull out any and every stop. “Lol his “victory” in afghanastan is wose than “mission accomplished”. I mean he sent a surge of 100kk additional troops and now he’s withdrawing 10k and then 20k as things escalate everywhere else in the middle east just about.
Now this/ “no need to fear oil is abundant…. for 17 hours!
This is easily understood as a move to keep pressure on Gaddafi, to tell him that loss of Libyan oil production has been neutralized and no longer offers him any advantage.
It also undercuts speculators piggybacking on Gaddafi’s resistance and threats.
I wouldn’t be surprised if the countries releasing the oil didn’t make some adjustments in the amount of oil they are adding to the reserves, so that the net oil added to the market is often much less than the advertised 2mbpd.
What will be interesting is how the Gulf oil producers react. I don’t think Iran wants to sacrifice their own revenues to push prices back up, but it would be happy to do so as part of a collective action. My bet is that the producers don’t take any overt action.
Damn double negatives.
In place of: “I wouldn’t be surprised if the countries releasing the oil didn’t make some adjustments”
Read: “I wouldn’t be surprised if the countries releasing the oil make some adjustments”