[erepsysoulperj]

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

[P3bWjm1j]

Which means they'll just go back up when this is done and it'll be the same old crap all over again.

Just bomb the crap out of those people and be done with it. The situation will not be resolved with diplomacy.

And we might as well do this anyway because all they'll say about America is the usual crap about America going to war over oil and empire building and all that razzamatazz.

Damned if we do and damned if we don't.

[feannigvogten]

Just imagine how the price would plummet if we where actually allowed to drill for oil.

[P3bWjm1j]

Yes because cheap gas prices and money is far more important than a clean environment. Who cares if some species go extinct when there's an oil spill like the Gulf one, right? We've just got to go! Go go go go go go go go GOOOOOOOOOOOOOO! AND WE NEED THAT GAS TO GO REALLY FAST!

[erepsysoulperj]

I really wasn't in favor of this 30 day "event" but what it does show is that spanking the speculators works. The chairman of the Commodities Futures Trading Commission (CFTC) said a couple of weeks ago that 88% of the "long" crude contracts (bets that oil prices will go up) were owned by non-producers or consumers of oil. These are big banks and hedge funds with big bucks, who day-trade and profit on price swings. They're changing their bets today, and you can see the results.

A more permanent strategy would be imposing position limits and transparency requirements on this niche market.

[feannigvogten]

Yes because cheap gas prices and money is far more important than a clean environment. Who cares if some species go extinct when there's an oil spill like the Gulf one, right? We've just got to go! Go go go go go go go go GOOOOOOOOOOOOOO! AND WE NEED THAT GAS TO GO REALLY FAST!

If you have a hard time paying for gas now, your not going to be able to make the expensive jump to something new.

[CatLuvkaLover]

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.

[RerRibreLok]

I'm all for using every other country's oil before we begin to drain our own national resource.

[Almolfuncomma]

I'm all for using every other country's oil before we begin to drain our own national resource.

All you liberals think that way, liberals don't care about American jobs. You would rather send 500+ billion a yr and all the jobs that go with it to oil lords and put our economy in their hands dictating to us.

[RerRibreLok]

All you liberals think that way, liberals don't care about American jobs. You would rather send 500+ billion a yr and all the jobs that go with it to oil lords and put our economy in their hands dictating to us.

Ok, lets assume we drill-baby-drill and deplete all of our own oil in 30 years. In 30 years we will have to seek oil from places like Saudi Arabia, Iraq, and Libya, who will literally have us bent over a barrel, because they KNOW we have to get our oil from them.

Right now, we do have alternative sources of oil, so those countries can't bargain too hard or they will lose a huge customer. Gasoline is still roughly as expensive as a gallon of milk, its not like prices are unbearable. In 30 years, if we do it wrong now, prices will be unbearable. Is planning for the future an anathema to the conservative mind?

[erepsysoulperj]

Just imagine how the price would plummet if we where actually allowed to drill for oil.

I'd agree that doing more to encourage additional exploration and drilling would be great for jobs, and maybe eventually for the price. What really could change things would be making NG the alternative transportation fuel in the US. Set a goal of having half of our vehicles run on NG rather than gasoline. Now that would eliminate all need for imported oil in a relatively short time.

[bitymnmictada]

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, increasing supply lowers price? Who'd have thought? Of course good luck getting this to last long enough to really matter by election time.

[Bondjrno]

...... 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.

This is a perfect opportunity for a short squeeze, a highly inelastic commodity bid way up, put some downward pressure on the market, get a big block of shorts, and with any luck you could send oil limit down for a week.

[investor]

Which means they'll just go back up when this is done and it'll be the same old crap all over again.

Just bomb the crap out of those people and be done with it. The situation will not be resolved with diplomacy.

And we might as well do this anyway because all they'll say about America is the usual crap about America going to war over oil and empire building and all that razzamatazz.

Damned if we do and damned if we don't.

When did we ever "don't"? I know we are "Damned if we do" but we have never tried the "don't" so how would we know?

[CatLuvkaLover]

This is a perfect opportunity for a short squeeze, a highly inelastic commodity bid way up, put some downward pressure on the market, get a big block of shorts, and with any luck you could send oil limit down for a week.

Well, we sure have the perfect set up. If I was selling a position now at $91.40 per for WTI or $107.75 for Brent only to later fulfill the position later with a buy in the mid-low $80s for WTI or mid-low 90s for Brent then we are there. Perhaps watch it fall further. Since oil prices were headed down anyway, before this decision, that is exactly what is being set up today. Some may argue that in a way this may be looked at as a form of QE3, with Fed support (timing of his conversation sending prices down with the decision sending it down further), and with plenty of cash to be made along the ride. Why not short squeeze oil for at least August and September contracts? Or at least leave the option set up in a short position against another position dealing with even more stupidity coming from IEA down the road?

[ancexttew]

Yes because cheap gas prices and money is far more important than a clean environment. Who cares if some species go extinct when there's an oil spill like the Gulf one, right? We've just got to go! Go go go go go go go go GOOOOOOOOOOOOOO! AND WE NEED THAT GAS TO GO REALLY FAST!

Actually yes it is more important.

In case you have missed it, the human race is at the top of the food chain and we cant do shit to harm the planet. Also, in case you've missed it, when people aren't getting the resources they need, they tend to kill each other to get them.


BTW - 99% of all species on the planet had gone extinct long before man walked the earth. Its part of the natural cycle of adapt or die.

[Bondjrno]

Well, we sure have the perfect set up. If I was selling a position now at $91.40 per for WTI or $107.75 for Brent only to later fulfill the position later with a buy in the mid-low $80s for WTI or mid-low 90s for Brent then we are there. Perhaps watch it fall further. Since oil prices were headed down anyway, before this decision, that is exactly what is being set up today. Some may argue that in a way this may be looked at as a form of QE3, with Fed support (timing of his conversation sending prices down with the decision sending it down further), and with plenty of cash to be made along the ride. Why not short squeeze oil for at least August and September contracts? Or at least leave the option set up in a short position against another position dealing with even more stupidity coming from IEA down the road?

And if you take it down fast enough, enough of the long side speculators will be sitting out the market (being stuck in a position that's moving limit down for a couple of days tends to reduce your stake), that you could see prices stay relatively low for a while. With a commodity as inelastic as petroleum, $50/barrel makes as much sense as $125/barrel.

[eskimosik]

Yes because cheap gas prices and money is far more important than a clean environment. Who cares if some species go extinct when there's an oil spill like the Gulf one, right? We've just got to go! Go go go go go go go go GOOOOOOOOOOOOOO! AND WE NEED THAT GAS TO GO REALLY FAST!

What species became extinct because of the Gulf spill?

Those who don't want us using our own resources are those who are far to comfortable with us being dependent on other countries. They don't want the United States to be truly independent.

We should drill for oil here. When (and it will be a case of "when" as opposed to "if") we find it, our bargaining power becomes far more strong with governments of oil producing countries. We can then say "Lower your prices, or we'll just get our own, and you know we have it".

We could fortify our bargaining position and, at the same time, get lower prices on oil. Sadly, though, libs don't want to see either...

[Bondjrno]

What species became extinct because of the Gulf spill?

Those who don't want us using our own resources are those who are far to comfortable with us being dependent on other countries. They don't want the United States to be truly independent.

We should drill for oil here. When (and it will be a case of "when" as opposed to "if") we find it, our bargaining power becomes far more strong with governments of oil producing countries. We can then say "Lower your prices, or we'll just get our own, and you know we have it".

We could fortify our bargaining position and, at the same time, get lower prices on oil. Sadly, though, libs don't want to see either...

There isn't enough oil here to make much of a difference, we just had a huge discovery talked about in these forums, there was enough oil to last us a couple of weeks, that's a huge amount of oil, but we burn a lot of oil.
Now if we reduce our use of oil, down to what we actually produce, we are independent, if we had kept the energy independence programs that Carter put in place, we would be using significantly less oil, and we would be producing energy efficient products that would be in demand.
But we didn't do that.

The only way to make a dent in our dependence is to use less.
Which is a lot easier than producing more.

[eskimosik]

Blahblahblah.

You don't want us drilling. I get that. You want us to be dependent on foreign oil. I get that, too.

Reducing our oil consumption to what we produce is a fucking pipe dream, and it'll never happen. Ever.

But, hey, if we could do it in 30 years, why not use our own oil now while we're getting to that point?