US Plans to Release 30 Million Barrels of Oil From Reserves

http://www.cnbc.com/id/43508255

Quote : The United States plans to tap its vast emergency petroleum stockpile, the White House said on Friday, as part of global efforts to bolster tightening oil supplies.

As much as it may help the wallets of some, I disagree with this. Releasing the oil from the strategic reserve is only provides a short term benefit.

Quote from cd470 : http://www.cnbc.com/id/43508255 As much as it may help the wallets of some, I disagree with this. Releasing the oil from the strategic reserve is only provides a short term benefit.

I agree. I opposed this when Bush did it, and I now oppose it when Obama does it.

Quote from cd470 : http://www.cnbc.com/id/43508255 As much as it may help the wallets of some, I disagree with this. Releasing the oil from the strategic reserve is only provides a short term benefit.

We use 20+ million barrels a day, I don't see how this will effect anything.
What's the reasoning behind this?

Quote from OhNoItsDEVO : We use 20+ million barrels a day, I don't see how this will effect anything. What's the reasoning behind this?

You instantly fark all of the speculators, they go broke. The speculation on the price of a barrel goes away, bing bang boom, the whole price drops for a long time even though it is only a small release.

http://www.bbc.co.uk/news/business-13890072

I'm a bit confused as well. Gas prices appeared to be decreasing over the past few weeks, so cost doesn't seem to be the primary factor. I don't see any political benefit to anyone as we're not near any elections and the effects will likely be very short-term. Also, it is part of an international effort, so it doesn't appear to be a US-centric move. Perhaps this move is related to one of the international conflicts (publicly known or not). I guess we'll find out.

the reason: another way to deflect attention from the horrible jobs numbers..

I agree, there is no point to this...it is supposed to be for EMERGENCY...I see no emergency...just politics...true, not close to election time, but as I noted above it is an attempt to, and a sign for the leftist media to, switch their attention and that of the gullible public away from the disastrous 400k+ jobless claims [cnbc.com]and the resulting plunge in the DOW

another reason is to deflect from his military withdrawal speech from yesterday, which pleased no-one....the libs are pissed that he isnt withdrawing fast enough, and the conservatives are pissed that he is ignoring the advice of Gates and Petraeus who said a 'modest' withdrawal is ok, only to be hit with a 25% withdrawal, as well as an end-date transmitted to the enemy so they know to just wait us out in Pakistan, and then walk across the border and take over again after 2014 with minimal, if any, opposition.

Quote from Xygonn : You instantly fark all of the speculators, they go broke. The speculation on the price of a barrel goes away, bing bang boom, the whole price drops for a long time even though it is only a small release. http://www.bbc.co.uk/news/business-13890072

Well perhaps this isn't such a dumb idea after all.
Those damned speculators piss me off.

My main concern is that by tapping the reserves for nonevents, less is available in an emergency.

Should there be restrictions on releasing oil from the reserves, e.g. congressional approval?

Quote from OhNoItsDEVO : Well perhaps this isn't such a dumb idea after all. Those damned speculators piss me off.

I thought the speculators were pretty awesome when oil was $40.

Quote from OhNoItsDEVO : Well perhaps this isn't such a dumb idea after all. Those damned speculators piss me off.

I was against it at first, now I am on the fence.

It's used to disrupt speculators and last couple times the government did this they were able to buy the oil back at a cheaper rate pretty soon after they released it making some cash for the government.

Quote from Xygonn : You instantly fark all of the speculators, they go broke. The speculation on the price of a barrel goes away, bing bang boom, the whole price drops for a long time even though it is only a small release. http://www.bbc.co.uk/news/business-13890072

I agree with this and why not fark with speculators...they fark with the price of a gallon of gas I pay for so I am all for returning the favor to their wallets. Payback is a bitch. But if Obama (or any other POTUS) wants to truly be effective, get Congress to pass a law that says you have to put 50%, 100%, whatever on speculation. Right now, I think they only have to put 3 or 5% cash down so they can do a lot of damage with very little cash up front.

Quote from ShengD : I'm a bit confused as well. Gas prices appeared to be decreasing over the past few weeks, so cost doesn't seem to be the primary factor. I don't see any political benefit to anyone as we're not near any elections and the effects will likely be very short-term. Also, it is part of an international effort, so it doesn't appear to be a US-centric move. Perhaps this move is related to one of the international conflicts (publicly known or not). I guess we'll find out.

They may be decreasing but they are still over 100% higher since Obama took office. As long as oil prices are high, food will cost more, clothing will cost more, companies will take in less profit...i.e. just a viscious cycle of economic recovery. If oil prices aren't brought in check soon, start preparing for a depression because the economy by almost every indicator is heading there currently.

“Straight-jacket Time”: Dow, Crude Tumble After Obama Releases Strategic Reserves

Quote : If the White House wanted to "stick it" to the speculators, as some theorized this morning, they would have released strategic reserves last month, when crude was above $113 per barrel. The administration has made it clear it wants to clamp down on "excessive" speculation, especially in energy futures. But to do it now, when crude is already in retreat is "deeply weird [and] disquieting," Macke says. "I don't think they have the foggiest idea how to stick it to the speculators." http://finance.yahoo.com/blogs/da...et=&ccode=

I agree the oil reason it was done was to make Obama look better,
it will not affect the price of gas much if anything

Quote from chazjr : “Straight-jacket Time”: Dow, Crude Tumble After Obama Releases Strategic Reserves

I thought it was in response to the meeting earlier this month where Opec refused to increase supply..

http://www.nhregister.com/article...234862.txt

Quote : Oil price rises as OPEC refuses to boost output Published: Thursday, June 09, 2011 NEW YORK — A contentious meeting of oil ministers ended Wednesday with a clear message: Don’t count on OPEC to do much about oil prices. The 12-nation group decided not to boost production, which likely would have resulted in lower prices. That sent oil back above $100 a barrel. And more importantly, it sets the stage for higher prices later this year.