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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.

  • IEA SAYS TO RELEASE STOCKS
  • IEA SAYS TO RELEASE 60 MILLION BARRELS OVER COMING MONTHS
  • IEA SAYS TO RELEASE STOCKS TO ENSURE SUPPLY DUE TO LIBYA
  • IEA SAYS MEASURE TO ALLEVIATE LIBYA UNREST, IMPACT ON SUPPLY
  • IEA SAYS 132 MILLION BARRELS LOST TO LIBYA
  • IEA SAYS HIGH PRICES DAMAGE ECONOMY OF EVERY COUNTRY; IMPACT WORSE ON DEVELOPING COUNTRIES
  • IEA SAYS VOTED FOR EMERGENCY RELEASE FOR ONLY THIRD TIME

Crude:

 

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Thu, 06/23/2011 - 09:12 | 1394254 Boilermaker
Boilermaker's picture

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

Thu, 06/23/2011 - 09:36 | 1394349 snowball777
snowball777's picture

Or...not.

Thu, 06/23/2011 - 09:47 | 1394409 Boilermaker
Boilermaker's picture

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

Thu, 06/23/2011 - 17:30 | 1396621 mkkby
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.

Thu, 06/23/2011 - 11:15 | 1394917 The Lawnmower
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.

Thu, 06/23/2011 - 11:45 | 1395077 trav7777
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

Thu, 06/23/2011 - 09:08 | 1394256 Cdad
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.

Thu, 06/23/2011 - 09:17 | 1394270 Cognitive Dissonance
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.

Thu, 06/23/2011 - 09:26 | 1394310 Cdad
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.

Thu, 06/23/2011 - 09:44 | 1394331 Cognitive Dissonance
Cognitive Dissonance's picture

Once again the powers-that-be show how well they manage the mindless herd. Greed is so easy to manipulate.

Thu, 06/23/2011 - 09:35 | 1394341 cosmictrainwreck
cosmictrainwreck's picture

clarify? looks to me like trend is down, so I sell each bounce UP? so you see oil continuing down? I'd heard a target of $85

Thu, 06/23/2011 - 10:58 | 1394816 trav7777
trav7777's picture

what u think gonna happen when these stockpiles are drained?

Thu, 06/23/2011 - 11:27 | 1394971 slewie the pi-rat
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. 

Thu, 06/23/2011 - 09:11 | 1394260 Sutton
Sutton's picture

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

Thu, 06/23/2011 - 09:15 | 1394262 Blano
Blano's picture

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

Thu, 06/23/2011 - 09:25 | 1394277 buzzsaw99
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.

Thu, 06/23/2011 - 09:31 | 1394330 snowball777
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.

Thu, 06/23/2011 - 09:47 | 1394398 buzzsaw99
buzzsaw99's picture

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

Thu, 06/23/2011 - 09:30 | 1394336 That Peak Oil Guy
That Peak Oil Guy's picture

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

http://www.youtube.com/watch?v=4d3kK4kgz5g

TPOG

Thu, 06/23/2011 - 09:15 | 1394264 The Lawnmower
The Lawnmower's picture

Oil and Gold jumped off a cliff together.

Thu, 06/23/2011 - 09:28 | 1394332 snowball777
snowball777's picture

I have mixed emotions about that.

Thu, 06/23/2011 - 09:12 | 1394265 hugovanderbubble
hugovanderbubble's picture

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

Next Nigeria¡

Thu, 06/23/2011 - 09:32 | 1394334 boiltherich
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.

Thu, 06/23/2011 - 10:09 | 1394545 Monedas
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 ?

Thu, 06/23/2011 - 09:12 | 1394267 alexwest
alexwest's picture

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

alx

Thu, 06/23/2011 - 09:19 | 1394272 Alex Lionson
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...

Thu, 06/23/2011 - 09:16 | 1394279 alexwest
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'

alx

Thu, 06/23/2011 - 09:20 | 1394282 Everybodys All ...
Everybodys All American's picture

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

Thu, 06/23/2011 - 09:42 | 1394380 boiltherich
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. 

 

Thu, 06/23/2011 - 10:03 | 1394477 Tinsu
Tinsu's picture

Is the 60 million barrels going to Italy?

Thu, 06/23/2011 - 09:31 | 1394328 Caviar Emptor
Caviar Emptor's picture

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

Thu, 06/23/2011 - 09:20 | 1394281 twinshot
twinshot's picture

Lubrication Baby!

Thu, 06/23/2011 - 09:20 | 1394283 tallen
tallen's picture

Time to BTFD as usual.

Thu, 06/23/2011 - 09:27 | 1394312 Boilermaker
Boilermaker's picture

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

Thu, 06/23/2011 - 09:21 | 1394284 AUD
AUD's picture

Where does the IEA get these 60 million barrels from?

Thu, 06/23/2011 - 09:19 | 1394294 alexwest
alexwest's picture

fucking excellent question..

alx

Thu, 06/23/2011 - 10:06 | 1394493 Dreadker
Dreadker's picture

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

 

http://www.reuters.com/article/2011/06/23/us-markets-oil-idUSTRE7592LE20...

 

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

Coming soon - yard sale at Ft. Knox!

Thu, 06/23/2011 - 09:17 | 1394285 101 years and c...
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.

 

Thu, 06/23/2011 - 09:21 | 1394286 Anjum
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. ??

Thu, 06/23/2011 - 09:21 | 1394287 Note to self
Note to self's picture

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

Thu, 06/23/2011 - 09:18 | 1394289 Catullus
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.

Thu, 06/23/2011 - 10:00 | 1394456 Citxmech
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?

Thu, 06/23/2011 - 09:18 | 1394290 alexwest
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

alx

Thu, 06/23/2011 - 09:24 | 1394291 Dr. Engali
Dr. Engali's picture

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

Thu, 06/23/2011 - 09:20 | 1394299 mynhair
mynhair's picture

30 million from the US?  What crap!

Thu, 06/23/2011 - 09:20 | 1394302 Archimedes
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!

Thu, 06/23/2011 - 09:20 | 1394303 casey13
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.

Thu, 06/23/2011 - 09:55 | 1394427 T-roll
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.

Thu, 06/23/2011 - 09:22 | 1394307 curbyourrisk
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.

Thu, 06/23/2011 - 09:25 | 1394308 oogs66
oogs66's picture

we have moved from bread and circuses, to bread and oil and circuses....

 

here, take some oil, celebrate, please ignore all the rest

Thu, 06/23/2011 - 09:26 | 1394309 RobotTrader
RobotTrader's picture

Peak Oilers discredited yet again.

Another Wall St. myth down the drain.

"But, John, every month, the BP Statistical Revew says....."

LOL......

Thu, 06/23/2011 - 09:26 | 1394324 oogs66
oogs66's picture

how does this discredit peak oil?  releasing reserves from storage isn't the same as finding more oil in the ground?  this should hammer some energy stocks today :)

Thu, 06/23/2011 - 09:40 | 1394382 That Peak Oil Guy
That Peak Oil Guy's picture

Uh, this kind of move actually confirms peak oil.  So does this paper from the UK Department of Energy.  This is research done in 2007 but only now released under an FOIA request.

http://www.guardian.co.uk/environment/2011/jun/15/peak-oil-warning

TPOG

Thu, 06/23/2011 - 09:24 | 1394313 Mike2756
Mike2756's picture

Manipulation that you can take to the bank!

Thu, 06/23/2011 - 09:28 | 1394314 thetrader
thetrader's picture

great, us imports 10 barrels per day.....

Thu, 06/23/2011 - 09:24 | 1394315 Joaquin Menendez
Joaquin Menendez's picture

Sounds like the promised spare Saudi capacity that the Saudis promised to bring on line wasn't able to show up; big surprise everyone knew it didn't exist.

Thu, 06/23/2011 - 09:24 | 1394317 Everybodys All ...
Everybodys All American's picture

Also, don't discount the US selling the reserve oil up here and rebuilding inventories at a lower price.

Thu, 06/23/2011 - 09:26 | 1394323 lizzy36
lizzy36's picture

So the EIA is going to release less than 2/3rds of one days world crude demand over time?

Another ridiculous policy response. Fucking politicians trying to get reelected by once again demonstrating the wrong answer to the wrong question.

When the hedge fund community is structurally long over 300m/boe (WTI+brent) which amounts to 30% of OECD stocks, up from a mere 30m/boe at the high in 2006, one can only speculate (pun intended) about what the real issue and correct policy response it.

These numbers are from the CFTC and are as of last week. They are down from the high reached on April 26 which was 445m/boe (WTI+brent), but in absolute terms last weeks number was STILL HIGHER than at anytime before December 2010.

The problem is not SUPPLY. The problem is monetary policy and treating crude oil as an asset class. Alas as long as one doesn't correctly define the problem, the correct solution will never see the light of day.

Thu, 06/23/2011 - 09:27 | 1394327 oogs66
oogs66's picture

and what do they know that is scaring them so much that they do this sort of thing to distract us?

Thu, 06/23/2011 - 09:48 | 1394399 lizzy36
lizzy36's picture

What they know is what we all know.

Obama's poll numbers are in the shitter.

And he is hitting up wall street and HF's for massive donations to his 2012 campaign. So, instead of addressing the real issues, which would affect his puppet masters, he takes the easy way out, AGAIN.

So Obama announces draw down in Afghan Troops, and release of oil from SPR.

Next he will send out hopium lollipops.

 

Thu, 06/23/2011 - 10:03 | 1394475 Citxmech
Citxmech's picture

"And he is hitting up wall street and HF's for massive donations to his 2012 campaign."

Thank you.  He has his marching orders.

Thu, 06/23/2011 - 09:30 | 1394326 Re-Discovery
Re-Discovery's picture

I love the smell of napalm - - and panic - - in the morning.

Thu, 06/23/2011 - 09:32 | 1394345 Caviar Emptor
Caviar Emptor's picture

Don't you believe 'em....when they start dipping into reserves it's a freakin' oil crisis

Thu, 06/23/2011 - 09:38 | 1394378 Yen Cross
Yen Cross's picture

 Where's that Saudi commitment?

Thu, 06/23/2011 - 09:43 | 1394393 trillion_dollar...
trillion_dollar_deficit's picture

30 million are coming from the SPR.

Gotta love Obama's attempt to get re-elected. This is probably only the tip of the iceburg for what we will see as policies directed at that effort.

Thu, 06/23/2011 - 09:43 | 1394394 r101958
r101958's picture

Come on....are we on swimming in de nial river? Wasn't SA supposed to make up for all Libyan production loss with a production increase of their own? Is our memory that short term? Watch, that fact won't be mentioned in the MSM or, if it is, it will be discounted.

Thu, 06/23/2011 - 09:56 | 1394432 Lord Blankcheck
Lord Blankcheck's picture

 the Ponzi Maintenance button has been pushed

Thu, 06/23/2011 - 10:04 | 1394433 lieutenantjohnchard
lieutenantjohnchard's picture

wonder if this is a ruse to crush the price of oil by releasing supply to hasten excuse for qe3? i know this has been discussed a lot but it seems to add up.

Thu, 06/23/2011 - 09:56 | 1394439 Midwest Prepper
Midwest Prepper's picture

This is totally unnecessary, as the Saudis have guaranteed increased productiont to offset the Libya shortfall!

Thu, 06/23/2011 - 10:01 | 1394447 i-dog
i-dog's picture

I smell a rat. Is this a [Paris-based, predominantly European membership] IEA's [pathetic] response to the US threat to de-fund the IMF? Since when did they care about "developing countries"?

<edit> Cancel that. I see that O'bomber is chipping in 30mmbbl from the SPR ... must be some other agenda!

Thu, 06/23/2011 - 10:01 | 1394469 John McCloy
John McCloy's picture

Anything to keep the farce intact. Add this to the things needed to keep the ponzi going along with fraud accounting, ZIRP, QE and next up PRICE CONTROLS. 

Thu, 06/23/2011 - 10:04 | 1394489 caerus
caerus's picture

According to EIA, U.S. daily consumption about 18.77 mmbd so 60mmbd is about 3.2 days worth of U.S. consumption.  According to EIA, Libyan production is about 1.5 mmbd.  According to IEA press release, already 132 mmb of light, sweet crude removed from market AND "analysts generally agree that Libyan supplies will largely remain off the market for the rest of 2011."   So if we count 184 days left in the year from July 1, this is 184 days * 1.5 mmbd = 276 mmb offline for rest of year due to Libya.  Simplified analysis but doesn't seem like 60 mmb over 30 days is much.  Seems more worrisome that Saudis keep balking.

Thu, 06/23/2011 - 11:25 | 1394959 trav7777
trav7777's picture

um...oil supply affects price at the margins.

WTF does it matter if the US consumes 19mbpd?  We are not having any problem with the 18.7mbpd which is already available.  It's the last 500kbpd.

The SPR release is glutting at the margins, creating temporary oversupply.  This is its intended effect.

They will hide the real effects of the oil peak until hell breaks loose.  And they will go down pointing and screaming at "speculators" and "big oil" and "OPEC" till the lights go out.

Thu, 06/23/2011 - 10:08 | 1394506 user2011
user2011's picture

Hmm.... That's gotta hurt Goldman.    What had happened ? They should have been told about this ?  

Is goldman really falling out of favorite, fast, really fast.

Thu, 06/23/2011 - 10:11 | 1394530 r101958
r101958's picture

Is it not pretty obvious, now, that SA has peaked? My question.....what will they do 2 months from now?

Thu, 06/23/2011 - 10:08 | 1394540 stateside
stateside's picture

Peak Oil discredited LOL.  Too funny.  The Saudi's who supposedly have millions of excess barrels/day can't produce enough when push comes to shove so the IEA has to step in and "save the day". 

Thu, 06/23/2011 - 14:51 | 1395856 Citxmech
Citxmech's picture

I miss Matt Simmons - he would've been all over this like stink on shit.

Thu, 06/23/2011 - 10:14 | 1394554 PulauHantu29
PulauHantu29's picture

Libya? The Wall Street "oil gurus" said Libya is "too small to influence oil prices"....he he he.

Someone is plyaing a nasty trick on oil longs and trashing the A-Rabs.

Thu, 06/23/2011 - 10:11 | 1394559 r101958
r101958's picture

stateside- agreed. This release of 60mil brls from the SPR is tantamount to an admission that PO has arrived.

Thu, 06/23/2011 - 10:25 | 1394576 Monedas
Monedas's picture

The 60 mm bbls of oil will be condensed from the smoke they're blowin' up our asses ! Monedas 2011 Hoarders have more fun ! http://trololololololololololo.com/

Thu, 06/23/2011 - 10:16 | 1394590 Manolo
Manolo's picture

Well, confirmation of what we all know: there is no more spare capacity anywhere.

Thanks for getting that out into the public.

Now, by it's nature, reserves are finite.

Next step: full panic aboard 

Thu, 06/23/2011 - 10:24 | 1394605 r101958
r101958's picture

Interesting how it is announced that the decision to release 'strategic' reserves was the decision of the IEA. I understand that 30mil of that is coming from our SPR. 'Things that make you go ...hmmmm'.

Thu, 06/23/2011 - 10:36 | 1394686 Monedas
Monedas's picture

All they have to do is stop putting oil into SPR ! That can be done by flippin' a friggin' switch ! Have they done that yet ? Do you know how difficult it is to stop a procurement program (SPR) ? They probably don't even have extractor pumps in place to suck up the briny brew ! LOL Hahahahaha ! Monedas 2011 No on both counts ! They don't stop adding to SPR and they don't have Barney Frank suck any up through a garden hose ! It's just too rich ! Do you believe in Hillary ? The "Truth Fairy" (Barney Frank) ?

Thu, 06/23/2011 - 10:29 | 1394663 FrankIvy
FrankIvy's picture

This is a very bad sign.  Very bad.  You've gotta wonder about the timing.  The CL market seemed pretty calm.  No price moves. 

They are definitely attempting to preempt something here.

I think that this is a signal that a massive supply crunch is about to hit us.

Thu, 06/23/2011 - 10:31 | 1394679 foxman
foxman's picture

According to the US Energy Information Administration, Total World Petroleum Consumption averaged 84,249,000 barrels/day in 2009.  So their 60 million barrels is good for about 17 hours.

Thu, 06/23/2011 - 10:52 | 1394746 Monedas
Monedas's picture

Yeah ! 17 hours worth to be delivered over the next six months ? Monedas 2011 So this was why the Euro-Wops were whining.....they need their "Terror Oil" with Lockerby blood !

Thu, 06/23/2011 - 10:48 | 1394772 King Dong
King Dong's picture

The drop in crude prices has nothing to do with this irrelevant 60 million barrel release. The drop is a realisation the global economy is heading into the shitter, fast! Consumption is about to fall off a cliff. QE3 gotta be a cert now, no? 

Thu, 06/23/2011 - 10:47 | 1394777 SDRII
SDRII's picture

yesterday italy called for a halt to libya operation. today comes an eia deal. related?

Thu, 06/23/2011 - 11:02 | 1394861 r101958
r101958's picture

Everything is related. As for the U.S. this is a desperate attempt to keep prices down. My guess is that there is much we don't know; like SA has said (not publicly) that they can not produce more and/or that production is in decline. Also, this is an attempt to take out the longs and reward the shorts. You know, once bitten, twice shy. This in addition to the recent raising of the oil margin prices. It is all manipulated and has been but there is only so much you can do to manipulate a finite commodity.

Thu, 06/23/2011 - 11:06 | 1394894 CrashisOptimistic
CrashisOptimistic's picture

Y'all just sit there and continue to think the world is at always has been.

For a lousy 1.4 million bpd they are tapping global SPRs.

See, it's not Libya's 1.4 mbpd.  It's Libya in addition to the RELENTLESS FALL in production from fields that have been pumping for decades.

For your own good, understand that the party is over.  It's over for you.  It's especially over for your kids.  The cops are coming. 

On horseback.  Four of them.

 

Thu, 06/23/2011 - 11:17 | 1394939 Rusty Shorts
Rusty Shorts's picture

Ding

Thu, 06/23/2011 - 11:13 | 1394908 r101958
r101958's picture

Crash-'See, it's not Libya's 1.4 mbpd.  It's Libya in addition to the RELENTLESS FALL in production from fields that have been pumping for decades.'.......very well said!

Thu, 06/23/2011 - 11:23 | 1394951 CrashisOptimistic
CrashisOptimistic's picture

And now you know why I chose this name.

An epic crash is an optimistic scenario for the human race.  If that's all that happened, it would be a bright future.

But it's not.  The situation transcends markets.  We're headed towards hunter / gatherer territory, and no one will care a whit about call options or LIBOR rates.  They'll care about finding a beehive from which to get carbs in the winter.

Thu, 06/23/2011 - 11:30 | 1394987 r101958
r101958's picture

I actually have a couple of them. It is a hard way to get a buzz though.

Thu, 06/23/2011 - 11:32 | 1394993 CrashisOptimistic
CrashisOptimistic's picture

Well done, but keep your mouth shut about them.

Thu, 06/23/2011 - 11:38 | 1395027 trav7777
trav7777's picture

nah...I have it on good authority that we will just "find a way" and in the meantime we will use nukeyaler power and algae and ionic liquids and shit

Thu, 06/23/2011 - 15:02 | 1395911 Citxmech
Citxmech's picture

Now you've got it - Excess capacity is like healing Tinkerbell:  You just have to believe hard enough [don't strain too hard or you might blow a hemorrhoid!].

. . . or is it more like "the recovery,"  i.e., if you just wait long enough, it will come [like Godot]?

[Cue Little Orphan Annie singing, "Tomorrow. . ."] 

Thu, 06/23/2011 - 11:35 | 1395010 Monedas
Monedas's picture

Springtime for Allah ! That sounds better than Arab Spring ! They are not democratic revolutions......they are Allah is Great revolutions ! Monedas 2011 Our allies are sooooo special, Hillary ! My but you are the clever little hose monster/slit licker bitch !

Thu, 06/23/2011 - 12:14 | 1395213 glenlloyd
glenlloyd's picture

this doesn't make any sense unless tptb sense that the downtrend could reverse itself in short order given something in MENA that we're not aware of, otherwise why would you now release oil from the SPR?

the other explanation could be that they're just stupid.

Thu, 06/23/2011 - 12:34 | 1395322 pebblewriter
pebblewriter's picture

If the $4/bbl impact lasts a week (not likely) we save nearly $1 billion in crude.  Meanwhile, the DJIA alone loses $50 billion since news of this stunt leaked out around 3am EDT.  It's a stunning revelation of how idiotic (and desperate) the "brain trust" running our economy really is.

http://pebblewriter.blogspot.com/2011/06/not-terribly-slick.html

Thu, 06/23/2011 - 14:35 | 1395794 Stuck on Zero
Stuck on Zero's picture

Yes this release of reserves if total bullshit in the big picture but for the GSs and JPMs who get inside information on these moves there are billions to be made in shorts.

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