DOE Announces Details Of Strategic Petroleum Reserve Firesale

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Thu, 06/23/2011 - 18:53 | 1396853 Mike2756
Mike2756's picture

What entity is "managing" this?

Thu, 06/23/2011 - 19:07 | 1396882 Cleanclog
Cleanclog's picture

Wait a minute!  

 Delivery of the oil to the winning companies would take place over the month of August. Winning companies would pay for their oil during the month after the crude is delivered." Which simply means that China will convert quite a bit of America's trade deficit from dollars into oil.


The Strategic Petroleum Reserve is meant to help the USA when there is a catastrophic supply disruption (ie. following Katrina). It was not structured nor intended to be for price manipulation to aid the economy by spurring consumer consumption. If this is to ease a "catastrophic" disruption, why is it not being delivered until August?  And when is the bidding scheduled for? 

It is a misappropriation by the IEA - driven by powers we are not "sure" of yet - but since 50% of the oil released is from the USA's SPR, you can be confident that our gov't/Treas/Fed was made aware of and influenced this decision in advance. 

Does anyone believe the bidding won't be rigged and manipulated too?  Wars start over these kind of things.  As we prepare to exit Afghanistan we have another war heating up.

This will backfire!

Thu, 06/23/2011 - 19:18 | 1396917 scatterbrains
scatterbrains's picture

It's probably just that either GS or JPM got caught on the wrong side of the crude futes market and needed a bail out.

Thu, 06/23/2011 - 20:03 | 1397038 AGuy
AGuy's picture

No it was O'bama caught on the wrong side of a pending election! O'bama needs a voting bailout!


Thu, 06/23/2011 - 21:38 | 1397221 treasurefish
treasurefish's picture

While you all are worried about oil, here's what's going on in the rest of the world:


Obummer is negotiating with the Taliban, and backing the Libyan rebels.  So what?  You need to see what your tax dollars are paying for yourself!

The Bad Guys

These videos look awfully like Al Qaeda to me. But don’t take my word for it.  Look at the evidence and decide for yourself.
A warning: these videos are graphic and horrific. They’re posted at and, because it’s got hefty security around its site and rock solid courage to speak truth to power.

FederalJack will not back down, and will update the videos on as new footage arrives.
The first video shows a Libyan rebel beheading a Libyan soldier. If it looks like Iraq, well golly, the highest percentage of foreign fighters in Iraq (and Chechnya and Afghanistan) came from Eastern Libya. Unhappily for NATO, there’s no avoiding that this video was shot in Libya: The men are speaking a Libyan Ara
b dialect with its own distinct accent.

The second video shows gruesome footage of a Libyan rebel cutting up the rotted flesh of a dead soldier and forcing it into the hands of Libyan Prisoners of War, who are lined up in a row so they must eat it.
Another video shows a group of Rebels sodomizing a civilian with a pistol.
Another  shows a crowd of Rebels hanging and beheading a Libyan soldier.
Another video shows CIA operatives working side by side Rebel forces, driving around in trucks— proof that U.S. forces are already on the ground and active participants in the atrocities.
Another video shows several dead Libyan soldiers with their throats cut, lying in the back of a truck. The killings violate the Geneva Conventions of War, which protect enemy soldiers after capture. In the excitement, NATO Rebels encouraged a frightened on-looker to video the butchery and claim that Gadhaffi’s forces were responsible. Afterward, the man with the video grabbed his family and fled the Rebel stronghold. That’s how the video reached the fact-finding group in Tripoli

Thu, 06/23/2011 - 23:26 | 1397433 Cleanclog
Cleanclog's picture

I wasn't "worried" about oil so much as about the manipulated markets, now further manipulated and additional markets, goverments and entities.

Your post is annoying in its context here.  A worthy post, but you are stretching to put here.  Just saying.

Thu, 06/23/2011 - 21:24 | 1397224 topcallingtroll
topcallingtroll's picture

I bet it is both.

Fri, 06/24/2011 - 01:26 | 1397657 IQ 145
IQ 145's picture

 I think I understand; it's all part of the strategy of "winning the future"; they next thing to do is lower the painter over the rail on his scaffold and paint over the "TITANIC"with, "Hope and Change"; then everything will be fixed.

Thu, 06/23/2011 - 19:23 | 1396929 sabra1
sabra1's picture

am sure this is all covered in the constitution!

Thu, 06/23/2011 - 20:03 | 1397041 Bunga Bunga
Bunga Bunga's picture

Does it mean they admit that USA is in catastrophic condition?

Thu, 06/23/2011 - 20:28 | 1397099 Rusty Shorts
Rusty Shorts's picture

 - not til August, then the USA will be in a catastophic condition.

Fri, 06/24/2011 - 00:05 | 1397519 Newsboy
Newsboy's picture

I agree, catastrophic August appears to be signaled.

Thu, 06/23/2011 - 20:16 | 1397055 e_goldstein
e_goldstein's picture

backfire? this reeks of sabotage.

Thu, 06/23/2011 - 20:35 | 1397112 iNull
iNull's picture

Mad Max bitchez.

TPTB => TPTW => TPTNCR (The powers that nobody can remember).

Thu, 06/23/2011 - 21:29 | 1397228 Mad Max
Mad Max's picture

The two great northern tribes went to war, over the black fuel...

Thu, 06/23/2011 - 21:25 | 1397225 Beatscape
Beatscape's picture

The IEA released a mock Q&A today to address questions re: the SPR release.  In this Q&A was a bit of shocker in that they openly acknowledged that Saudi Arabia does not have the famed spare capacity and spigot they can turn on as needed that every main stream media outlet and WS analyst claims that they do.  In fact, the release is a tacit admission of the fact that Saudi Arabia has little to no spare capacity.  Matthew Simmons was right all along...  This whole manuever is bullish for crude and exposes the tightness in the market.

Has the IEA consulted with OPEC or Saudi Arabia on this decision? Would this IEA action not discourage Saudi Arabia and other willing OPEC members from increasing oil production?

The IEA and its member countries have been in close contact with key oil producing countries, and in particularly with Saudi Arabia, which holds the lion’s share of OPEC’s spare capacity.  The IEA welcomes the announcement made by Saudi Arabia that it intends to make incremental oil available to the market.  However it will take time for these incremental barrels to be produced and shipped to consuming markets; the use of IEA strategic stocks now will help bridge the gap until these new supplies are available. Producers and consumers have a common interest in stabilising oil markets. This point has been highlighted many times before, and is a reason for the IEA’s close liaison with key oil producing countries at all times.


Thu, 06/23/2011 - 18:54 | 1396854 Undecided
Thu, 06/23/2011 - 19:29 | 1396955 Long-John-Silver
Long-John-Silver's picture

The sooner it happens the better off the survivors will be. Beans, Bullets, and Bullion Bitchez!

Thu, 06/23/2011 - 19:37 | 1396964 Gavrikon
Gavrikon's picture

Groceries , Guns, and Gold!

Thu, 06/23/2011 - 21:10 | 1397178 usefuloutput
usefuloutput's picture

Pasta, Pistols, PM's, Putas!

Thu, 06/23/2011 - 21:39 | 1397248 Libertarians fo...
Libertarians for Prosperity's picture

Doomers, goons and rednecks

Saddle up the Camaros, pilgrims.  This redneck done got mad.... 


Thu, 06/23/2011 - 21:55 | 1397285 tarsubil
tarsubil's picture

You hurt my feelings. I'm going to stop buying precious metals and guns because I haven't the self esteem to oppose the oligarchs. You're unstoppable like AAPL!

Thu, 06/23/2011 - 22:29 | 1397339 Herbert_guthrie
Herbert_guthrie's picture

Sir Gavrikon: Obviously, whoever junked you is not familiar with your top-notch comments on MW blogs.
You Sir, deserve your due....

Apologize for the idiot who junked you. He knows not what he does.

Fri, 06/24/2011 - 01:27 | 1397669 IQ 145
IQ 145's picture

 200% Silver ! (Margin loans are cheap!)

Thu, 06/23/2011 - 20:46 | 1397127 Caviar Emptor
Caviar Emptor's picture

That's the 12th country with a yuan swap agreement

Thu, 06/23/2011 - 18:50 | 1396855 redpill
redpill's picture

These people are retarded.

Thu, 06/23/2011 - 19:31 | 1396959 Long-John-Silver
Long-John-Silver's picture

No; these 'people' are politicians. Please do not degrade the mentally handicapped.

Thu, 06/23/2011 - 19:34 | 1396971 max2205
max2205's picture

I say FUCKTARDS. Our govt is a bunch of FUCKTARDS

Thu, 06/23/2011 - 19:39 | 1396982 dick cheneys ghost
dick cheneys ghost's picture

Seeing as how it came from the believable is the info? Something else is going on.....

Thu, 06/23/2011 - 20:36 | 1397107 iNull
iNull's picture

True. But who elected them? Nothing spells F.U.C.K.T.A.R.D.A.G.E. like:
a) The scientifically illiterate, "we got enough oil in Alaska to last us a thousand years," Lindsey Williams parrots.
b) The psychotic, shaven-head, drum-beating Hare "abiotic oil" Krishnas.

Thu, 06/23/2011 - 18:53 | 1396856 Manthong
Manthong's picture

So how much did GS make trading in front of this "surprise"?

Thu, 06/23/2011 - 18:54 | 1396863 Re-Discovery
Re-Discovery's picture

What a silly frivolous foolish bumbling -- and above all DANGEROUS -- Government we have.

They are worse than a Banana Republic.  Think Kafka or Borges.  Obviously Orwell.


Thu, 06/23/2011 - 18:58 | 1396869 alien-IQ
alien-IQ's picture

I think they've stumbled right into Harold Pinter levels of absurdity.

Thu, 06/23/2011 - 19:03 | 1396884 Re-Discovery
Re-Discovery's picture


Thu, 06/23/2011 - 18:57 | 1396866 alien-IQ
alien-IQ's picture

another little ancillary market benefit that will come from this down the road will be how the market will be 'surprised" to see how the oil inventories have declined and will surely see it as a bullish sign to send the markets ever needlessly higher because....well...just because.

I think if I live long enough to see even one smart decision made in Washington that actually benefits the people of America...I'd probably drop dead of a heart attack on the spot.

Thu, 06/23/2011 - 19:59 | 1397025 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

If SS and Medicare were bad ideas the (D) and (R)'s would make them go away!!!!!!

They must be good ideas or why are they still defended?



Thu, 06/23/2011 - 23:39 | 1397452 snowball777
snowball777's picture

Because lobbyists need to drain energy through their dangly filcher pods too?

Thu, 06/23/2011 - 18:54 | 1396868 daneskold
daneskold's picture

Obama is privatizing the strategic petroleum reserve because of the debt ceiling.


How desparate for cash!


Next up for sale, the Lincoln Memorial.

Thu, 06/23/2011 - 19:17 | 1396922 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Good analysis, except I wouldn't say "Obama".

Like W before him, he is a rubber-stamper and dancing puppet for decisions made by... a higher power...

By the time you become the leader of a country, someone else makes all the decisions -- you just sign your name.

-William Jefferson Clinton, 1998, here

(a lot of truth is said in jest)

Fri, 06/24/2011 - 01:26 | 1397660 hidingfromhelis
hidingfromhelis's picture


Fri, 06/24/2011 - 04:54 | 1397811 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

One good turn deserves another, hope this gives you a chuckle:

Thu, 06/23/2011 - 19:35 | 1396972 Long-John-Silver
Long-John-Silver's picture

Considering the number of persons Lincoln murdered in a civil war simply because some states had had enough of an overbearing central government and wanted to legally leave the union. The Lincolin Memorial should be sold for scrap.

Thu, 06/23/2011 - 21:14 | 1397198 Diogenes
Diogenes's picture

Here we go again. They did legally leave the union. After they left the Union they ganged up on the Union and attacked it at Fort Sumter. The Union then defended itself and the rest is history.

Thu, 06/23/2011 - 18:59 | 1396870 Cdad
Cdad's picture

So let me get this straight, the administration that refuses to approve oil drilling permits all over the US is now selling our Strategic Petroleum Reserves to China.

Let me dwell on this for a bit...

Thu, 06/23/2011 - 20:41 | 1397119 Rusty Shorts
Rusty Shorts's picture

Cdad, I'm glad you you're here on ZH, i like the way you think.

Thu, 06/23/2011 - 21:25 | 1397227 Cdad
Cdad's picture

Well, I have thought about it for awhile now, and I have decided that even a HUGE FAN of Dancin' with the Stars can see how absurd this one is.

As was Rome, so too are we being destroyed from within.

Thu, 06/23/2011 - 18:56 | 1396874 Downtoolong
Downtoolong's picture

the government does not plan to stagger the sale of the oil and will offer all 30 million barrels in one bid sale.

And the winning bid is Walter Himmel, a New Jersey dentist, who says he’s been successfully trading (er investing) in oil on margin for over three years.

There, that’ll show those damn speculators what for.

Thu, 06/23/2011 - 19:01 | 1396878 Spastica Rex
Spastica Rex's picture

I guess I don't get how $113/barrel oil is that helpful, anyway.

Thu, 06/23/2011 - 19:07 | 1396901 CrashisOptimistic
CrashisOptimistic's picture

This is the dirty little secret or oil and reporting WTI as the measure.

We don't burn much WTI.  We burn imports mostly.  They are all priced higher.  The avg was about $113.

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