Posted on 09/24/2009 7:34:08 AM PDT by h20skier66
As the U.S. strategic petroleum reserve (SPR) approaches capacity (721.5 million barrels filled out of a total possible 727 million, and will be filled by January 2010), the federal government will fade out of the oil-buying business. Some bearish traders believe that this factor can weigh in on prices, since most petroleum stocks in the United States are government-held rather than private. Bullish traders have also used the filling of the Chinese SPR as a reason that oil should go much higher.
Planned government buying or selling of crude oil for SPRs actually have very little impact in the overall market. However, an overall drawdown of worldwide inventory could put downward pressure on the price of oil. The various countries also have their particular reasons and influences in decisions to tap their reserves.
So which countries are executing preparedness plans to fill their strategic reserves with $70 oil now (as opposed to $140+)
Russia, Canada, and Saudi Arabia can leave the list, as they are net exporters of oil and thus do not actually require a strategic reserve, at least in the short term. We'll also bump Brazil, because its balance of imports is dwindling every year, and it should become a exporter before it requires a reserve. That leaves six countries to examine.
(Excerpt) Read more at commoditynewscenter.com ...
It was interesting that hurricane season this year was a petroleum price spike bust.
Israel getting ready to strike Iran????
Good info, thanks, one of the benefits of reading FR is the collective insight into this kind of stuff.
United States, China, Japan, South Korea, India, and Germany.
I would argue that Mexico may become a seventh, especially if it does not get in on more oil in the Gulf of Mexico (domestic and international waters). Other Euro nations could add up to be an 8th.
Intresting fact!
Along the Gulf Coast, it was not only a price spike bust, but it was a hurricane bust as well. (Thank God!)
;-)
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