(06-23-2011 08:59 AM)miko33 Wrote: [ -> ]Talk about starting your election campaign early...Is this really a time to tap the reserves? Maybe the administration needs to rethink their views on petroleum exploration and extraction...
http://finance.yahoo.com/news/Obama-read...l?x=0&.v=1
I hate when they do this (R/D) thats a *stragic reserve* which should only be tapped if the situation is dire (embargo / temporary supply shortage) not to flatten out the prices during peak summer travel.
(06-23-2011 09:25 AM)Bull_In_Exile Wrote: [ -> ] (06-23-2011 08:59 AM)miko33 Wrote: [ -> ]Talk about starting your election campaign early...Is this really a time to tap the reserves? Maybe the administration needs to rethink their views on petroleum exploration and extraction...
http://finance.yahoo.com/news/Obama-read...l?x=0&.v=1
I hate when they do this (R/D) thats a *stragic reserve* which should only be tapped if the situation is dire (embargo / temporary supply shortage) not to flatten out the prices during peak summer travel.
What makes this curious is we are not seeing escalating gas prices because of the summer driving season. I don't know what the experience was for others, but in my neck of the woods the price of gas peaked in mid May, remained flat to slightly lower on Memorial Day and has been steadily falling through today (from a peak around $3.85 to $3.29 today). It makes no sense to tap the reserve now, unless Obama is trying to psychologically make us feel better? Dow is down around 180 pts, S&P down around 18 pts...contradictory to what QE2 was trying to accomplish. Talk about the right hand not knowing what the left is doing...
I bought gas in Houston yesterday and paid $3.30 for regular unleaded. The price was dropping about 7 cents a week before this announcement.
(06-23-2011 09:44 AM)WMD Owl Wrote: [ -> ]I bought gas in Houston yesterday and paid $3.30 for regular unleaded. The price was dropping about 7 cents a week before this announcement.
Maybe thats why he released them. in a few months when he claims is 'actions' dropped the price of gas who will remember that they were falling before the reserves were opened.
(06-23-2011 09:46 AM)Bull_In_Exile Wrote: [ -> ] (06-23-2011 09:44 AM)WMD Owl Wrote: [ -> ]I bought gas in Houston yesterday and paid $3.30 for regular unleaded. The price was dropping about 7 cents a week before this announcement.
Maybe thats why he released them. in a few months when he claims is 'actions' dropped the price of gas who will remember that they were falling before the reserves were opened.
this
(06-23-2011 09:32 AM)cb4029 Wrote: [ -> ]Thank You Mr. President.
Oh, oil is good now? Here's an idea, if he wants more oil to hit the market, GET THE GOVERNMENT THE **** OUT OF THE WAY!
First,
This smells of political pandering. It doesn't smell it is. I can see why an opposing side would be pissed. It's desperation. Some internal polling must be showing something. No other explanation.
Second,
I know the majority in here abhor govt. involved in anything, but why can't we be smart about this. Why don't we release oil in peak season. Then replenish in the winter and MAKE A PROFIT. It's ok for a private business to make a profit but it's absolutely wrong for our govt. to take the sting out of potholes and pay down our debt. That's the first thing that came to my mind. I have no problem releasing it as long as we replace it when the price goes down.
(06-23-2011 10:33 AM)Machiavelli Wrote: [ -> ]First,
This smells of political pandering. It doesn't smell it is. I can see why an opposing side would be pissed. It's desperation. Some internal polling must be showing something. No other explanation.
Second,
I know the majority in here abhor govt. involved in anything, but why can't we be smart about this. Why don't we release oil in peak season. Then replenish in the winter and MAKE A PROFIT. It's ok for a private business to make a profit but it's absolutely wrong for our govt. to take the sting out of potholes and pay down our debt. That's the first thing that came to my mind. I have no problem releasing it as long as we replace it when the price goes down.
Mach,
While in principle I agree with the 'release at peak/restore in winter' what happens if some wells explode, or a ship sinks, or something else forces the govt to restock at a loss.
Those reserves need to be there in case of emergency. They are in no way big enough to play the market.
I agree in principle Bull. It should be for emergency use only. But I would go a little farther for the Kingdom. If I were King. I would settle at 75% capacity. We can game the system til we hit 75% capacity. I would get some smart number crunchers around me. Guy's in actuary. We could be a hell of a lot smarter about this.
I think by the stuff I have read it's plenty big enough to game the market. Don't let OPEC know your 75% limit and you can definetly game the market. I think we might have Robert's answer to the live oil market graph and why it was going down. This decision wasn't made in a vaccum.
The first time in my life, gas prices are going down in the lead up to peak summer driving season. We are being gouged. I pd, $3.20 for a fill up in Houston. Filled up my Hurricane Generator reserve, ~50 gal.
Yeah...not needed. Supplies are fine and demand is relatively low historically.
Gas is $3.11 a gallon in Toledo right now.
I just read an article that they are trying to break the backs of speculators. Hit them when they are down.
(06-23-2011 12:17 PM)Machiavelli Wrote: [ -> ]I just read an article that they are trying to break the backs of speculators. Hit them when they are down.
That would be a fools errand... They released what, 30 million barrels? The US uses 20 million a day! So they bumped the yearly supply by .25%. A bad storm or another uprising in the middle east would wipe that out.
Needed or not, isn't this less than a 2 day supply? Can't see it having much if any effect, short or long term. Except to fool the easily fooled.
(06-23-2011 12:17 PM)Machiavelli Wrote: [ -> ]I just read an article that they are trying to break the backs of speculators. Hit them when they are down.
They know how to make money either way. If that is the strategy, it is a poor one that will play into the hands of the George Soros and the speculators.
(06-23-2011 12:17 PM)Machiavelli Wrote: [ -> ]I just read an article that they are trying to break the backs of speculators. Hit them when they are down.
Who is "they"? Do you honestly think there is anyone in this administration with enough business and economic experience that they could game people who had been in the speculation business for years? Really? Tell me, if they're so damn smart about these issues, why in the hell is the economy in the tank?