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NEW YORK (CNNMoney) -- The U.S. Department of Energy said it will release 30 million barrels of oil from the Strategic National Reserve to alleviate Libyan oil supply disruptions, adding more pressure to already-plummeting oil prices.

The U.S. release is half of the 60 million barrel supply hike announced Thursday by the International Energy Agency, which includes the United States as one of its 28 member nations.

ASUG8 wrote:

NEW YORK (CNNMoney) -- The U.S. Department of Energy said it will release 30 million barrels of oil from the Strategic National Reserve to alleviate Libyan oil supply disruptions, adding more pressure to already-plummeting oil prices.

The U.S. release is half of the 60 million barrel supply hike announced Thursday by the International Energy Agency, which includes the United States as one of its 28 member nations.

http://money.cnn.com/2011/06/23/markets ... ?hpt=hp_t1" onclick="window.open(this.href);return false;

TheDancinMonarch wrote:

ASUG8 wrote:
http://money.cnn.com/2011/06/23/markets ... ?hpt=hp_t1" onclick="window.open(this.href);return false;

Wouldn't new drilling eventually "alleviate" oil supply disruptions on a more long-term basis?

ASUG8 wrote:

TheDancinMonarch wrote:
Wouldn't new drilling eventually "alleviate" oil supply disruptions on a more long-term basis?

I think you're making the mistake that oil prices follow the economic supply and demand models we were taught in school.

Grizalltheway wrote:From what I understand, this is barely more than a day's supply for the US.

AZGrizFan wrote:

Grizalltheway wrote:From what I understand, this is barely more than a day's supply for the US.

Political posturing at it's finest.

Grizalltheway wrote:From what I understand, this is barely more than a day's supply for the US.

Cap'n Cat wrote:

AZGrizFan wrote:
Political posturing at it's finest.

Oh, bullsh*t, Z. Quit fvcking your Laura Bush blow up doll for a while and open your eyes.



Seems poor timing to me, though. Heard oil crashed on the markets yesterday because of, primarily, slowing industrial activity in China.

AZGrizFan wrote:

Cap'n Cat wrote:


Oh, bullsh*t, Z. Quit fvcking your Laura Bush blow up doll for a while and open your eyes.



Seems poor timing to me, though. Heard oil crashed on the markets yesterday because of, primarily, slowing industrial activity in China.

Right. If Bush had made this move you'd have been all over him like stink on shit.

∞∞∞ wrote:Does it actually make 38 mpg with you in it?

LeadBolt wrote:Now the question is, how will he follow it up for a long term solution? Will it be increased drilling permits? Pushing natural gas and coal as alternatives? Increased research funding for alternative sources and conservation technologies?

∞∞∞ wrote:

LeadBolt wrote:Now the question is, how will he follow it up for a long term solution? Will it be increased drilling permits? Pushing natural gas and coal as alternatives? Increased research funding for alternative sources and conservation technologies?

He's a politician, so all three. In West Virginia? Well, he'll talk about how he's not going to abandon coal because they're the backbone of our energy supply. In California? He'll be saying how alternative energy sources will lead us to a brighter and cleaner future. In Alaska? It's gonna be about how the government approved more permits and that Alaskans will be reaping the monetary benefits (leaving out that by more he means one permit was given). It's the way of Washington...they are everything to everyone.

Chasing speculators out of the market could have a substantial and rapid impact on prices.

"Over 60 to 70 percent of the oil market is speculative," said Gulf Oil chief executive Joseph Petrowski. "When the market starts to perceive for one reason or another that either supply is getting more ample or there's going to be less demand or the economy is weaker, you flush out the speculative interest. So prices grind up and then we bang down."

Oil market watchers like Gheit say that — based solely on the fundamental forces supply and demand — oil should be trading about $20 below current levels.

"I think the IEA is trying to act like a central bank," said Dominick Chirichella, founding member of the Energy Management Institute in New York. "With the IEA dumping two million barrels a day onto the market, I don't think anyone will be comfortable being long on oil. I think U.S. oil prices will trade in the $85 to $92 a barrel range going forward. We may see oil trading in the 80s very soon."

Starting July 1, motorists who use their personal vehicles for business will be able to deduct 55 cents a mile from their taxable income, the agency announced Thursday. That's an increase of 4 cents from the first six months of the year.

ASUG8 wrote:http://www.usatoday.com/money/perfi/tax ... eage_n.htm

Starting July 1, motorists who use their personal vehicles for business will be able to deduct 55 cents a mile from their taxable income, the agency announced Thursday. That's an increase of 4 cents from the first six months of the year.

So, gas prices were headed down for the last three weeks, we opened the oil reserve to further push prices down, and now giving additional tax breaks for high gas prices?

It's seeming like with Bernanke's "half empty" testimony on the state of the economy and the failure of all the other Federal stimuli over the last couple of years that the government has officially run out of answers.

AZGrizFan wrote:

ASUG8 wrote:http://www.usatoday.com/money/perfi/tax ... eage_n.htm



So, gas prices were headed down for the last three weeks, we opened the oil reserve to further push prices down, and now giving additional tax breaks for high gas prices?

It's seeming like with Bernanke's "half empty" testimony on the state of the economy and the failure of all the other Federal stimuli over the last couple of years that the government has officially run out of answers.

Gas prices were headed down (although the vast majority of Americans can't connect THOSE dots), and now Obama can claim that HIS decisive action to release oil from the strategic oil reserves CAUSED those price decreases....he gets a cheap political victory by taking advantage of market forces already in effect.

LeadBolt wrote:

AZGrizFan wrote:
Gas prices were headed down (although the vast majority of Americans can't connect THOSE dots), and now Obama can claim that HIS decisive action to release oil from the strategic oil reserves CAUSED those price decreases....he gets a cheap political victory by taking advantage of market forces already in effect.

Had he done this 6-7 months ago, he could have legitimately taken credit and the country would be better off...