Posted on 06/24/2011 7:15:01 AM PDT by Lakeshark
On Thursday the President announced that he would release 30 million barrels of oil from the nation's Strategic Petroleum Reserve. The immediate effect on world markets was to knock the oil price down by over $4 a barrel. But many experts question the wisdom -- and the timing -- of the move.
Clearly, the timing of the withdrawal was politically motivated. Any reduction in the price of gas at the pump is going to be popular, especially with Obama's political base and with independents who are key to his reelection. The problem is that, like every other form of stimulus attempted by this administration, the SPR drawdown will have only temporary results. And in the long term, it will almost certainly drive prices up.
(Excerpt) Read more at americanthinker.com ...
Markets ultimately prevail—Something Zero and his minions know nothing about.
The release of, at best, a couple of days worth of reserves will have little effect on long-term trends.
I’m thinking on the lines of something much more sinister.
How much does a recipient of the oil from our Reserve pay for it? Is it to the highest bidder?
Oil futures are continuing to rise, nearly $100 now.
I think what he’s done is make an inconsequential move to piggy back on the already falling gas prices.
Gas prices have been declining for a few weeks on their own,
so Barky makes some move to “increase supply” and take credit for the decline.
The Oil goes on the open market for sale, at US market prices (currently at around $91)
Keep in mind that they are surging an already saturated/surplus market, which will likely rebound after the sudden halt in production is absorbed, to offset the sudden surplus.
At best, all this will do is create more instability in the Commodities Market. And, since the total 60 Million IEA barrels released, only represents about 75% of one day of World consumption. (83 Million Barrels.)
The likely outcome will be a higher price surge as the market hurries up to fill the artificial void in supply this stupidity created in the first place.
I believe I read that the US uses 11 million barrels per day of oil. This wasn’t even three days worth of oil.
The title led me to believe Laz was involved.
ROTFL!
They’re going to auction it in August for 112. Watch for China to buy it and Bernanke to have money for QE3 without printing.
They’re going to auction it in August for 112. Watch for China to buy it and Bernanke to have money for QE3 without printing.
Translates into about a 10cent decrease for 1 week in real terms, don’t even think gasoline stations will bother to even change their prices.
Also, because each state has is own blend and the refiners are optimized for a specific oil source, some states won’t see any relief what so ever. Most of this oil is going to head overseas lowering the price of oil but not the price of gas at the pump.
If anything, this is going to show up as profit for the oil companies since they aren’t going to reprice for such a small blip.
It is interesting to note this release will be combined with a World IEA volume of 60 Million Barrels, the USA providing half. (30 M. Barrels)
This is probably viewed by the Obama Admin. as stealth QE-3.
It is viewed as completely stupid by most logical observers.
The release of the reserve has nothing to do with America or what is the right thing to do. It is all about Obama.
The withdrawal of forces has nothing to do with the America or the troops or what is the right thing to do. It is all about Obama.
By the time this dufus is kicked out of the White Hut, we will be totally bankrupt. We will have lost in Afghanistan and Libya at the cost of billions of dollars and thousands of lives. And, our national oil reserve will be depleted.
He does not care at all. Nothing is about the welfare of America or the World. Everything is about how it effects him personally. Nothing else matters.
Like a renter being evicted, if he leaves America in shambles, with huge messes everywhere, he does not care.
He is thinking, “Hey. Its not my house anyway...”
They are manipulating the price of oil to play the futures market the same way Clinton did with the Oil for Food program.
$4 a barrel difference isn’t squat when you’re talking about cost to a refinery, it is squat to an individual playing the market.
His team probably forecasts that oil prices will continue to drop for a while -- making this useless gesture will then be pointed to as the "catalyst" for the change.
I heard on the news yesterday that gas will be around 2.75 per gallon by September. Just trying to placate the stupid. But it also depletes our reserves which imo is icing on the cake for the marxist.
The more I read stuff like this, the more I want to slug someone when they say Obama is helping us.
People wonder why I refer to Obama as dear leader; well, how about the fact that they still worship him even as he works to send us to the tenth level of hell?
I stole that from another poster here.
I thought it was perfect.
How much you want to bet this isn’t the last oil withdrawal from the reserve? If Obama gets away with this, he’ll do it again whenever his polling numbers sag.
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