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To: oceanview
what the administration can do is open the SPR to try and at least take the speculative component out of the oil price.

The SPR contains ~ 1 billion barrels of oil. We use ~ 20 million barrels a day. 60% of that is imported which is ~12 million barrels day. We would use the whole SPR in 83 days and and what we have been importing would quickly be brought by the rest of the world. The world uses 84 million barrels a day and a billion barrel supply is only 12 days. The SPR would quickly be gone and the 1-2 dollar decrease per barrel would quickly go back up without the reserve. Even 6 billion barrels from An-war would only last 300 days and it would take 20 years to get it all on the market. We have a supply problem and its not going away soon..
167 posted on 08/08/2005 10:34:50 AM PDT by jec41 (Screaming Eagle)
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To: jec41

we don't need to empty the SPR, just release some oil from it. that oil will displace some market contracts, causing a price decline (more then $1-$2, the market moves $1-$2 on a whim) that will take out some speculative stop positions. we are only trying to force some external event to cause the speculators to exit the market, this plan isn't going to take oil down to $30, that's not the idea.


203 posted on 08/08/2005 12:25:57 PM PDT by oceanview
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