DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Oil and gasoline prices falling today due to SPR decision

**CatLuvkaLover** · 06-23-2011, 04:11 PM

As I type this morning, crude is down 5.5% to $90.39/barrel and RBOB wholesale gasoline is at $2.81/gallon. A decision has been made to increase the supply of US oil on the market even as demand is down. Interesting political calculations at work here.

Strategic Petroleum Reserve Being Tapped To Offset Lost Crude : The Two-Way : NPR

What is interesting is the timing of all this. The release is being done as oil prices (for the July, August, September, and even further out contracts) were already on a somewhat decline and inline with several reports on inventory showing similar price influences on the price before this "release" decision. This was not done when oil was well over $100/barrel and we all knew then about potential effects on economic recovery. Also, this decision showed up the very next day after Bernanke spoke warning about the economic recovery slow down, with plenty of evidence supporting. What will be interesting to see is the effect on prices for further out speculation. Or, those contract months outside of the effect of this release, rather outside of the intended effects assuming more is not release further down the road. Which trust me, Oil is price range speculated that far out. September contracts are already moved as well. I cannot begin to explain to everyone the short positions (expecting even further oil value declines) I am seeing people put on the market for the next several months contracts this morning.

06-23-2011, 04:11 PM	#7
CatLuvkaLover Join Date Oct 2005 Posts 368 Senior Member	As I type this morning, crude is down 5.5% to $90.39/barrel and RBOB wholesale gasoline is at $2.81/gallon. A decision has been made to increase the supply of US oil on the market even as demand is down. Interesting political calculations at work here. Strategic Petroleum Reserve Being Tapped To Offset Lost Crude : The Two-Way : NPR What is interesting is the timing of all this. The release is being done as oil prices (for the July, August, September, and even further out contracts) were already on a somewhat decline and inline with several reports on inventory showing similar price influences on the price before this "release" decision. This was not done when oil was well over $100/barrel and we all knew then about potential effects on economic recovery. Also, this decision showed up the very next day after Bernanke spoke warning about the economic recovery slow down, with plenty of evidence supporting. What will be interesting to see is the effect on prices for further out speculation. Or, those contract months outside of the effect of this release, rather outside of the intended effects assuming more is not release further down the road. Which trust me, Oil is price range speculated that far out. September contracts are already moved as well. I cannot begin to explain to everyone the short positions (expecting even further oil value declines) I am seeing people put on the market for the next several months contracts this morning.
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