Posted on 06/23/2011 4:07:29 PM PDT by upbeat5
From what you are writing, the only sure winners will be the people who are now buying call options or selling put options on the current price of petroleum ... most others will not be so fortunate.
Excellent question!!! With China, India, Saudi Arabia and others growing their consumption it will mean higher prices of oil when we refill the SPRO. The balloonheads in the 0bama administration really screwed the pooch this time.
Or FOB's (friends of Barack's) who knew about this yesterday, sold off oil and are buying the same amount of oil today for ~$4.00 per barrel less.
Obama: The Microsoft Bob of presidents.
Or, a hurricane in the Gulf.
Hillary cattle futures ?
I believe that you have nailed it. He, I presume, is praying that nothing happens to raise retail prices before the election.
"Why would President Obama tap the Strategic Petroleum Reserve when oil prices were already falling?” The answer is simple: Obama knew this would have the maximum impact, hitting speculators on the chin, according to traders.
“Arguably the timing of the release is genius.”
This constitutes a day’s and a half supply of US oil consumption. I doubt speculators are going to intimidated out of the markets over that.
I don't see how higher oil prices can be avoided. Just as higher oil prices creates the environment for demand destruction, lower oil prices will lead to more consumption. That would be more consumption at a time when global reserves are 60 million barrels smaller. I wonder what that sort of situation will do to oil prices.
The bottom line is that much of the developing world is consuming more oil every day. The current release of oil reserves only represents 2/3 of one day's oil consumption and this release does nothing to bring more daily production to the table. So what more than a short term reduction has been gained here?
Also, if the Federal Reserve needs to get back to quantitative easing in order to boost the economy, you can count on that to provide upward pressure on commodities in general and oil prices in particular.
This whole thing stinks to high heaven. Hussein's numbers are in the crapper, even the nutroots were heckling him (that had to hurt his overblown ego) and the election is approaching. He has no accomplishments so he needs to point to something. This and last night's speech are a lame attempt to salvage his failed presidency.
Feh. This is nothing more than a one-time hit on oil prices. Speculators will absorb the hit and the prices will resume rising.
Why?
Because it’s a finite supply that was released. Much like the ‘economic stimulus’ that gave out free money, the source eventually runs out and you’re back where you started.
The solution is to increase production and cut back usage. Flood the market with crude for an extended period of time.
Price manipulation by the punk president. Bank on it.
Crude oil is a global commodity. Right now the world consumes 90 million barrels of oil per day. The total release from all reserves is 60 million barrels. That represents two-thirds of one day's oil global consumption.
So you are right that this shouldn't intimidate oil speculators. Often times oil speculators play both sides of the equation. They might be long on a contract set to expire next month and short on a contract set to expire in 3 nmonths...so to them this was a non-event.
He may have, but for the most part he was buying oil for the reserve at jacked up prices.
“When he can’t release anymore than the price does what?”
I Googled oil usage and in 2007 the US used 20 million barrels a day. Thirty million barrels is a day and a half’s worth of oil. Anyone who would legitimately and without Obama bias use the word “genius” is short-sighted. Genius is only recognizable by the passage of time, which judges all.
The RAT bastard 0dumb0 commie pig-in-chief....Swoon by the liberal partisan hack media “What a genius!” More like what a self-servicing, narcissistic commie pig! He will roast in Hell & the Lake of Fire throughout eternity!
im guessin we will be replacing it with oil that costs us two to three times what we filled it with
I imagine only a few ranking members and committee heads can manipulate the market as well as a president can.
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