IEA To Release 60 Million Barrels Over Coming Months, To Ensure Supply Due To Libya

Tyler Durden's picture

The much anticipated, and expected, IEA report is here.



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Boilermaker's picture

Futures now getting jerked off higher.  Watch for an absurd 'rally' after the open....per normal.

Boilermaker's picture

I'll wait until 4pm EST.  I've seen this movie before.

mkkby's picture

The IEA says jump and Obama says how high?  This coming after the UN declared war on Libya and Obama enforced it.

Folks I'd say the new world order is here and now. International agencies are deciding things and the US enforces them.  Sovereign nation is gone.

The Lawnmower's picture

The Lawnmower says this is all by design. Here is how this is going to play out and u can make a lot of money. 2 mil barrels a day is a drop in the bucket for 30 days. We are trying to drop the price of oil because we anticipate it going higher for whatever reason. The whatever reason is going to be the US going into Libya. They armed forces had a big training exercise on the east coast this past wknd. 2 C-130's a day have been taking off from camp pendelton in California. Buy the dollar, short gold and silver until late august. At that time gold will be 1460 and silver will be 31. Switch ur shorts to longs and play it all the way up to 48 by end of December. The Lawnmower knows.

trav7777's picture

2mbpd is NOT a drop in the bucket

Slack capacity defines the oil price.  If you have 0 slack and you dump on 2mbpd, you can drive the price down a LOT.

Bama is probably pulling 30k from Afghanistan to deploy to Libya

Cdad's picture

Well, there you go.  So much for Peak Oil, when there is a central planner standing at the top of the peak.

It all just gets richer every single day.  Hello Greater American Centrally Planned Depression.

Cognitive Dissonance's picture

Peak Insanity is a long way off. The great thing about the run up to the peak is that each day's insanity helps makes yesterday's serving seem tame in comparison.

Insanity normalized one day at a time.

Cdad's picture

Correct.  All counter trend intraday rallies in oil should be sold...and I expect there will be some miraculous algo attempts here...because the spot is very, very important to the S&P.

Thank you Ben Bernanke...thanks for this wasteland.

trav7777's picture

what u think gonna happen when these stockpiles are drained?

slewie the pi-rat's picture

the # of peak oil peakers will peak to surpass all previous peak oil peaker peaks?

we're not talkin pecks of pickled peppers, here, trav. 

Sutton's picture

Obongo  doesn't realize how many commodity ETF's are going to get whacked.  DOH!

Blano's picture

Isn't 60 million barrels over "months" kind of a drop in the bucket??

buzzsaw99's picture

In one sense it is a drop in the bucket but Libya was producing roughly 1+ mb/d so it does help offset the loss. It was also enough to temporarily affect the spot price (or coincidence?). Ironically it does point out that there is no spare capacity for "good" oil anywhere.


One more note for those who think this is meaningless, a one million barrel per day draw would run the usa spr (which last time I checked in 2008 was half sour already) dry in less than two years.

snowball777's picture

I think that says more about the pathetic state (idea even?) of the SPR, than it does about the significance of single-digit mb/d.

buzzsaw99's picture

maybe we can keep some extra over at your place? lulz

That Peak Oil Guy's picture

Here is a good interview with a few industry insiders talking about peak oil.


The Lawnmower's picture

Oil and Gold jumped off a cliff together.

snowball777's picture

I have mixed emotions about that.

hugovanderbubble's picture

US needs to control oil fields in Yemen,Libya...Nice¡¡¡

Next Nigeria¡

boiltherich's picture

Oil Fields in Yemen?  Their oil production is almost identical to Taiwan.  Not quite double that of Italy. 

But seriously, where does the IEA get the oil to release 60 million bbls over the coming months?  Where are it's fields?  Where are it's storage facilities?  Why do I suspect that I am somehow going to get screwed for this?  That is equal to about 1/10th of our SPR, you don't suppose that is where it will be released from eh?  And why is it taking so long to get rid of Qaddafi?  Isn't about time to either kill him or leave him alone?  As in lesson taught, like when Reagan killed his kid in the 1980's.  Someone is making a heap of money off of this or it would have been over by now.

Monedas's picture

I want these phony Islamic revolutions to never get resolved ! Let them fester in their own shit and pus until they beg Israel for guidance in organizing Semites into a productive, democratic society ! They are reaping their own harvest of hate ! Good strong medicine ! Monedas 2011 A Hoarder in Heaven Here and Now ! BTW The oil if it ever gets to market will come from the strategic reserve....where else ?

alexwest's picture

isn't a bit late?
so oil in 60$ is welcome?


Alex Lionson's picture

Wait, wait, are the US crude stocks not  at all time high and consumption is almost non-existent? Why release the EIA stocks??? Something does not match...

alexwest's picture

thats easy..

there must be reason for speculators to sell oil...

later they will say 'its NOT because of weak economy, economy is strong, so demand is strong, so need more oil'


Everybodys All American's picture

Simple supply disruption in Europe...Libya oil is off line right now.

boiltherich's picture

Yes, that oil was sent to Italy for refining into gasoline for the EU, since the disruption started euro gasoline has been tight and they now must have another source.  The US was trying to do a deal with Saudi for a swap, we provide oil to the Italians now and replace that with Saudi oil later but the Arabs would not go along because they did not want to sell later at below market price, so the deal fell apart last week.

I remember thinking at the time what does Saudi Arabia know about the future price of oil we don't?  Why do they automatically assume that crude is going to be higher no matter when the replacement deal is done?  And if they can't go along with this simple plan to borrow against future production in order to get past this momentary supply disruption then maybe the peak oil people are closer to the truth than we have given them credit for. 


Tinsu's picture

Is the 60 million barrels going to Italy?

Caviar Emptor's picture

hehe...welcome to the great ole shell game! Where did all the oil go?

twinshot's picture

Lubrication Baby!

tallen's picture

Time to BTFD as usual.

Boilermaker's picture

Exactly, they aren't done pulling aces (all 14 of them in the deck) out of their sleeves.

AUD's picture

Where does the IEA get these 60 million barrels from?

alexwest's picture

fucking excellent question..


Dreadker's picture

If you read the reuters release it states its the USA's strategic stockpile...


So the USA just sold its reserves needed to fuel the war machine...

Coming soon - yard sale at Ft. Knox!

101 years and counting's picture

ben told you the inflation was transitory.  maybe you guys finally understand why he said that?  been short oil since ben said it at $105, via DTO.


Anjum's picture

So this is QE 2.5 ?? stopgap arrangement to keep things afloat till Mr. Bernanke works out the mechanics of QE3 by sept/oct. ??

Note to self's picture

60 million barrels?  wtf?  That's not even enough for US fourth of July weekend driving.

Catullus's picture

Total bullshit. Crushing, OK is full of oil. Supply is just fine. They're in a panic because Obama can't keep his support for occupying yet another middle eastern country.

Citxmech's picture

Ever stop to wonder why we're so dead-set on keeping troops there when most of the country is against it?

alexwest's picture

drop in bucket.

world daily usage is around 80 -90 mln barrels per day..
so we are talking less 0.3 %.. peanuts


Dr. Engali's picture

Anything Obummer can do to get reelected. Maybe...just maybe we shouldn't be in Libya bombing more brown people.

mynhair's picture

30 million from the US?  What crap!

Archimedes's picture

Sweet less that a days worth of world supply. Please..the half life of this will last til about noon.


But I can smell the desperation of the world leaders..geez!

casey13's picture

This is just part of the plan. They need to get the commodities down a bit before they start another round of inflation. Deflationary fear before the inflationary ramp.

T-roll's picture

Exactly! The timing is no coincidence. Oil has been falling for a while on its own. Ben's comments yesterday plus the release of oil will crush commodities. Ben needs deflation in order to justify intervention. This is just one of the weapons in their arsenal.

curbyourrisk's picture

O'fucking bama to release 30 million barrels as well.


These PEOPLE need to be stopped

They are intent on destroying America.