This page has been archived and commenting is disabled.
The Strategic Petroleum Reserve Release Has Now Been Fully Priced In As Crude, Gasoline Surge
Remember how 4 very long days ago, the 60 million barrel SPR release was vaunted as being the reason for the second consumer renaissance after it was largely expected it would lead to sub $90 crude, and low $3/gallon gas, and result in every Joe Sixpack going out and buying 3 houses at least? Well, so much for that: the IEA's action has now been fully priced in and WTI is back to precisely where it was before the IEA announcement on Thursday. Which means that what some said was a shadow QE (and don't get us started on all the mainstream media "journalists", among which Bloomberg and CNN, who continue to confuse QE Lite with something they call QE 2.5) had a half life of just over 3 days. Expect future intervention half lives to continue declining, as the criminal banking cartel's ammunition is now down to just one thing, the only thing, printing.
Oh, and for those morons predicting a second half economic pick up, here's intraday gasoline. Have fun explaining that to whoever it is that pays your bonus check.
h/t Capital context
»
- 11183 reads
- Printer-friendly version
- Send to friend
- advertisements -
Releasing strategic oil reserves for political gain should be an impeachable offense. Hell, we impeached Clinton for violating that cow with a cigar.
How dare you suggest to do that to Obama, you racist b*stard. And you're a terrorist too.
Domestic terrorist bastards!
Might as well dump the entire SPR at this point, have a crude party!
I would be really upset if you all died in a freak gasoline fight accident.
(yes)(a billion)
I would like to salute those who bought TFD.
"Remember how 4 very long days ago, the 60 million barrel SPR release was vaunted as being the reason for the second consumer renaissance after it was largely expected it would lead to sub $90 crude, and low $3/gallon gas"
Yes, I remember. And to that I said: the release was not intended to lower prices, but to make huge profits at existing prices.
I filled up my car. #winning
Must watch Zoolander Gasoline Fight -> http://video.google.com/videoplay?docid=3889944325139005442#
The first 40 seconds of that video is consistent with how i feel my comments are mistakenly perceived 90% of the time here on ZH.
How long since the election? If it was done for political gain, it was done way too early to mean anything.
If it was done for 'political gain' it was one of the biggest political blunders in history as gas did not drop 1 cent, and now we'll replace that $50 oil stock by buying $120 oil. Just great.
Does that add to GDP? ;-P
+1
It was a trial ballon, pure and simple
SD1 wondering the same thing. Here's the best/worst I could come up with. They're not ready with the next FF yet. Gota goose it until then.
No one accused them of being intelligent.
No one can accuse them of being concerned either.
Given how un-necessary this was and how short-term the impact and how much political and future pain bad blood crap was created, I'd say this was more an experiment and data gathering move. Smacks of it.
Hwo will OPEC react, have balls? What will Iran say/Do? Will the US consumer believe that Government can always do this and so build a hope bank for the coming disruptions.
It's the bully's challenge, and no one there to to take him up on it yet.
ORI
http://aadivaahan.wordpress.com/2011/06/28/thoughts-and-a-heads-up/
Candidate Obama objected to President Bush releasing the oil from the SPR after hurricane Katrina in 2005 because the oil was for emergencies not for price manipulation. Now that his reelection campaign is in full swing I guess his mind was changed.
http://www.oilslick.com/Newsletter/Default.aspx?id=397
OK, smart guy, then why wasn't Clinton attacked by the ASPCA? Huh? Answer that brainiac. Oh, and, was it a Cuban?
Monica was really good at what she did.
Proving that a humidor, even though GDP positive, is not a device born out of necessity.
LMAO
Not really, or the blue dress wouldn't have been soiled.
What was she doing PapaSmurf?
That cigar was like throwing a Vienna sausage down a hallway.
Cow? What is wrong with a full figure? Woman are suppossed to have 15% bodyfat, but then you must be brainwashed by the MSM into thinking woman should look like boys.
Hear hear LH. Hear hear.
Or should that be
Feel Feel LH, feel feel.
ORI
Sure.....I would have done her.
I am sure I did worse drunk. Fortunately the memories seem to have been mercifully erased.
Baby got back!
Everybody likes some junk in the trunk. Monica could have carried it better though. If I remember right.
The brazen shamelessness of that action just astonishes me. My contempt for the current Administration is complete.
Perhaps the release from the SPR was a favor for the squid, so they could BTFD.
Lol!
TPOG
I had to add tons (or barrels) of oil yesterday today by way of USO. This short term price control will not last. Oil will rise no matter what happnes 2H since wars rage on and will just get worse. Do you see anyone declaring peace?
As far as "the second half recovery" I place that in the category with the RE spinmeisters on MSM today who are yelling RE prices rising...LMAO...what can they be smoking?!
More and more people, many very wealthy are now walking away and defaulting figuring, "WTF!" when they see Wall Street strategically defaulting....it's called "trickle down economics"....if you can default so can the next guy.....that's what I'm seeing anyhows...and if you have any questions about your mortgage, call 1-800-Linda-Green for answers.
GL! to all whatever position you take but oil ain't down long.
It is hard to imagine that all that matters to politicians, is getting re-elected with no cuts in pay, benefits or their 1 million dollar expense accounts. What an embarrassment this nation is.
Watch, we will buy it back at 120 per barrel and add to the deficit. Good job Obama.
Somebody junked you. What a joke.
Bubbly latte froth stocks...meet headwind.
Hey,
I said the half life was one day..so I was only two days off!
You were off by less than that, since "half life" doesn't mean the time it takes for 100% of something to decay (in this case the effect of the inventory release)... but the time it takes for half the effect to wear off.
I know that people are using it colloquially... but the "half" part should still count. Or at least half count.
Tyler,
But Cramer just last night said, "We have broken the back of inflation." And for three sessions, the Nanosecond Money crew over at the BlowHorn said buy consumer discretionary stocks as consumers now have more pocket cash.
I'm so confused.
Well they had more discretionary cash, but bought a $7 rice burrito and a $30 GAP tshirt, now theyre back to 'no cash'.
Two people in this world I would like to punch in the nose, Cramer and Harry Reed cause he sounds like someone alredy kicked'em in the nuts..
Matters not - just look at the wealth effect on the ES and RUT...mission accomplished.
As I said this morning, the oil stocks have probably bottomed.
But, looks like XRT is not backing off either.
I guess the consumer is going to go out and do some binge spending if they think inflation could heat up, who knows?
Get those Nike basketball shoes now for $125 before they go up to $150 next year....
99.9% of people in this country (the US) have no fucking idea that inflation may be coming, let alone have the ability comprehend inflation enough to understand that they should be "buying" ahead of the coming inflation (that they dont even see)
Big inflation headwinds...how do bankrupt people pay higher prices?
Flashmobs.
Work two part time jobs....dont pay the mortgage!
Hey Robot, what about those miners you junked early this morning. Never have anything to say about them unless they are dumping. Hmmmm.
Robo = autojunk
Hey, who you callin' a moron. I hope that comment was directed towards DC. Or did you mean the voters? Hmmmmm........
What about margin hikes? Worked for silver.
Yes, paper silver and physical silver alike. Phys premium % remained constant in my area on the last margin induced purge. Tells me that we will have some phys buying opportunities in the future.
Less than 50% of silver is "consumed" by industry, however, 100% of physical oil is "consumed"
It was not a political ploy, at least in the sense of partisan domestic politics. It was an attempt to buy time in the hopes that Libya can be sorted out in the next 3 months or so and/or the problem of QEn. The timing was to chosen to maximize the impact on prices. The Saudi's are all but livid, as it called their bluff (not intentionally) on raising production.
Given the recent report that there are two (2) tankers sitting off-shore should tell you the smart money knows where this is heading.
I just hope your name indicates AAA (guns). Screw a missile.
Got to keep your 88s straight....
Long and straight, but I am more partial to twin 40s.
Bofors are good for close in only.... give me something with a 30,000 foot ceiling. I like picking off high flyers....
http://www.youtube.com/watch?v=bVPLdRReUZ8
Im Obama for a minute, lets see if you remember this speech
'This Libya thing will be days, certainly NOT weeks'
Don't worry, Libya and their sweet, sweet crude will be under our control in no time......look at this bipartisanship, Kerry and McCain coming together for the NWO!
http://landdestroyer.blogspot.com/2011/06/arab-spring-brings-corporate-locust.html
"It was not a political ploy, at least in the sense of partisan domestic politics. It was an attempt to buy time in the hopes that Libya can be sorted out in the next 3 months or so and/or the problem of QEn."
NONSENSE! The whole middle east geopolitical situation is totally and absolutely contrived. There is no such thing as an OPEC cartel (WE decide what oil sells for). Just like there's no such thing as al qaeda and terrorists, which you should obviously know by now. Each and every middle eastern leader is on the payroll or someone powerful within their ranks is. Read 1984 by HG Wells. When are you people going to wake up? One reason there's more chaos in the middle east is to maintain artificially high crude prices. Why is that? Because that will devalue the dollar more than money printing alone. Get it? It's also why there are so many "natural disasters" which happen to create mass shortages in food, and soon energy: taking nuclear plants offline is crucial for this purpose. Watch and continue to see, each and every major event will always, ALWAYS lead to higher prices.
so, cancel the sale, dammit!
then when we go risk-off on thursday, re-announce it!
Obama is an idiot. He wants to increase supply to lower price but failed to realize that by putting oil on sale demand would increase. And unlike supply, which is tight, demand will stay high. He just dug his own grave.
Obama needs to do a Rodney Dangerfield and go back to college, or at least read a book. Oil production has peaked. Saudi oil production has peaked. Russia is the new swing producer, but they are not increasing production at a level that will mitigate world production. No other resource has an EROEI even close to crude. Obama should have learned how to swim before he took the gauntlet challenge from Kissinger. Barry, did you not think they wouldn't do you in? Idiot.
No, he has to figure out who are the right people to listen to....Any president is only as good as the people who advise him. However, O is at major fault in his choice of advisors....Never pick an advisor who clearly has vested interests in an issue....
Ok, but since he can't pick advisers, he is an idiot. He picks a lame wife, and he gets duped by his advisers..I will not pity him. He is the Potus! He should know better; he is accountable.
Walker Texas Ranger sorrounded himself with war mongers and idiots, and he still knew about energy:
Clinton says no one told him about peak oil, even though the CIA had done thorough reporting on supply constraints. So either these Democrats are stupid, or liars. I care not, they are accountable.Agreed, he is accountable for his advisors. There are more than a few Wormtoungues vying for the POTUS ear though.
As for being stupid liars, the Dems have no monopoly. W knew about energy because Cheney understood it. Don't forget what W did about it either. We are in Iraq for a good reason....
the Dems do have a monopoly, however, on race baiting politics. For that, they should die first, followed immediately by the Repugs
Naw... gotta disagree, the Dems play it from a different angle, you do remember Willie Horton and Rove's blindsiding of McCain in SC....
A mutually assisted suicide would be fair and just....
The first person to mention the Massachusetts furlough program in the 1988 presidential campaign was Al Gore.
http://en.wikipedia.org/wiki/Willie_Horton
I still agree with the mutually assisted suicide, however.
Re: Willie, that may be the case, but GHWB campaign got the most mileage out of it...
Definitely. Let us not forget, however, that Al Gore brought it up first and by the way that Hillary was the original birther.
http://www.telegraph.co.uk/news/worldnews/barackobama/8478044/Birther-row-began-with-Hillary-Clinton.html
A pox on both thier houses.
Now now flaky
The repugs would have used a white willie horton if they had too. The key message is that dems are soft on crime and like to blame society for bad behavior.
Given a white Willie and a black Willie, which one do you think they would have used....
Now for some of you out there, the above is a setup line, gratuitous mis-use is frowned upon..
Time for a "Big Johnson..."
http://www.bigjohnson.com/cgi-bin/productlist_new.cgi?id=20040627212301&...
here: for prez0 from rodney: YouTube - El "Triple Lindy" de Rodney Dangerfield
just imagine prez0 performing this is for the new voters. in spanish.
Hasn't the POTUS just been a figurehead since they shot that guy in Texas?
Liberty Valance??
No, Nixon was nobodies puppet. The first figurehead was St. Ronnie.
Nixon was puppet extraordinaire! Herbert Walker ran circles around him to get China involved in the ponzii, and then he got taken out and Rumsfeld and Cheney moved in! Tricky Bushes/Rockefellers/Harrimans!
Gotta disagree with you re: China... Ultimately, this is a matter of interpretation, there is no black and white answer. Having a position eventually exploited by someone else is not being a puppet. Nixon always had his own agenda.
Good god, I can not believe I am defending Nixon...
Both of you have solid understanding, but you are not cynical enough, nor have you examined your Obama-reason-for-existence-premise. Obama is not stupid. Now fill in the blanks.
Masochism only works if there is something to gain from one's 'mistake'. There is nothing to gain for Obama if he is merely sacrificing himself on the alter of politics.
His self sacrifice is stupidity exemplified, or he is an evil bastard, and being evil is stupid, as it retards the efforts of humanity, and the future of the collective should be the only concern for any of us.
Good point, however I have a semantic/associative disagreement with you. I suppose stupidity as a behavior can be related to evil, especially when seen from the eyes of someone who is inherently good (that would be you), but the variety of behavior he exhibits in my opinion is due to higher rebellion and a need to be a part of the deity of unrealizable human alchemy. To Obama, much of humanity is not human.
That is a fair take, and I agree his agenda centers around Calvinism, but still, this is evil.
Mr. LH obviously one has to go thru Manchurian Candidate finishing school before being annointed POTUS. He won't make any 'mistakes'. He wouldn't get the job if he was going to make any 'mistakes'. Bigger men than Obummer were owned decades ago, it could only be worse now, this far into the ponzi.
Maybe they are doing the gold thingy with oil, too. The physical stuff is of course sold to the toobigs and selling paper while printing delivery extends the big lie for a while once more..
How can you say oil production has peaked!!
but, but, but Saudi Arabia is finding every year new fields!
It's true!!
Every year the find the exact equivalent of fresh oil as the pump out!!
Their reserves are all the time the same!! Since years!
Crude joke Bitchez!
Desperation of TPTB doth greatly please!
merely an anomaly...all is well cnbc said so.....(actually I'm not sure they noticed...wait I don't even watch cnbc....I have no idea what they think)....more whiskey!
One of these days Silver will really take off.
Sleeping now like "beauty and the beast"
Get ready guys.. PM's always weak during the summer, but
this is just a quite period before the real storm.
Place your bets accordingly. ;)
Comex clearance sale continues until they run out of physical Silver.
for all those worried that our freedoms are being strangled day by day, behold the u.s. supreme court has made some important rulings that still respect the constitution:
http://www.bloomberg.com/news/2011-06-28/speech-rights-triumph-as-u-s-high-court-limits-government-power.html
there is still hope america...
Hope is for the doomed. Preparation is for the optomist.
No doubt the framework for our country is the best the world has ever seen. There is reason to be optimistic about that IMO. It is just going to take one hell of a mess to seperate the criminals from the system.
Word.
I honestly think we get more financial information out of Sesame Street than the idiot channel cnbc. Watch it pre market for about 20 minutes to get a feel then music for the entire trading day.
Cookie monster would make a better president.
You know what will be amusing:when less that half of the Released Barrels get taken up (which is the average if past releases from the SPR are indicative of future behavior).
I happen to know that some real DC heavyweights read this site.
So someone please check on the White House silverware...
Hey guys, I just got back from buying a new Chevy Silverado. What did I miss?
hybrid version?
GM's nationalization, apparently.
I hate to tell you this but Chevrolet Silverados do not contain any Silver......
Did they actually release the barrels or just say that they were going to release the barrels? That's an important distinction.
Also, the announcement (or release) wasn't necessarily done to bring the price of crude and gasoline down for any long period of time. It might have been done so the bankers could make some money on their short positions and/or take new long positions at lower prices for the eventual blast off.
There are many moving parts so what may seem like the rationale for a particular decision may only be an ancillary benefit to one participant in the game.
Exactly like the 9/11 arline puts.
Attn: monopoly
I stopped watching the miners, most of them were utterly destroyed anywhere from 35% - 60%. Some stocks like TRX are trading lower than the 2006 highs when gold was half of today's price. Most of the damage has already been done so I stopped paying attention to them.
Right and that's why you can own Silver and Gold at
production prices by exposing to the PM Miner sector..
Robo, many of those stocks will double before Year End.
If been watching PM's for long time now, same picture
year after year.
You wanna participate or not it's the other story...
You can watch and enjoy the show, still we have time to
add some, unless Bernank don't start QE3 couple of weeks from now.
Well Robo used to say he owned lots of gold and silver, before he found it was fun to bash it.
This all falls under the heading of "perception is reality"... meaning that our policy makers actually believe that psychology/propoganda can overcome fiscal reality - like saying something in and of itself makes it come true. You're right about the fact that the toolbox is about empty... the bailouts, cash for clunkers, QE, release of strategic oil reserves, and the rest of the "transitory" band-aide fixes that are the are impotent pipe dreams of elected officials who are obsessed with how they look, dress and in general are able to pursue hedonistic lifestyles without limits. Our system rewards and elects extroverts... they lie, cheat, steal and give good sounding speeches to the gullible masses who want to believe everything is ok and will get better (whilst ignoring the mathematical situation and how they are being fleeced by the corrupt extroverts). As each kick the can down the road intervention's half-life gets increasingly shorter and increasingly impotent we are getting closer and closer to the time the rubber will meet the road and when that happens say hello to austerity measures, QE to infinity and the dillution of your hard earned cash... what's happening in Greece and other countries is coming to a neighborhood near you - embrace it because you have no other choice. What will happen to the U.S. - easy to predict... just watch what's happening in Greece and other countries on a smaller scale and apply on a larger scale.
It will keep going on until the TV watchers are in real discomfort: hungry, hot, cold, stranded.
with no NFL football...
Add 300,000,000 guns to your comparison please.
Tuco Benedicto Pacifico Juan Maria Ramirez
Come on VDE!
It is clear now depletion allowances will remain intact.
have you noticed how silent the PM addicts have become on ZH since over a month...?
It's called a buy-signal....
Most of the "silver bitchez" crowd got annihalated and were margined out of their positions, so you don't really hear much from them any more.
I'd be despondent too if I was buying "physical" at $40, $38, $36, $34, then got margined out at $33 the last few days. And watching LULU, CMG, AMZN rocket up day in and day out adds insult to injury.
I wouldn't wish that kind of bad luck on anyone.
That seems fair to concede, robotool. How does it feel on your end?
here is a commentator who has earned my respect. he is a total bear on silver, right now, and has been since things started to "quiet down" LOL!
Kitco - Commentaries - Ned W. Schmidt
as long as the debt we hafta create new + re-fi = more than we gots, we'Z gonna print, print, print. so, unlike ned, i think long = good, especially for US silver coins. over-government & goobermint waste are destroying wealth and capital, practically world-wide, while creating debt. aye, maties...
The bar silver and the arms still lie, for all that I know, where Flint buried them; and certainly they shall lie there for me. Oxen and wain-ropes would not bring me back again to that accursed island; and the worst dreams that ever I have are when I hear the surf booming about its coasts or start upright in bed with the sharp voice of Captain Flint still ringing in my ears: "Pieces of eight! Pieces of eight!"
I am going to be like the 40 year old high school quarter back who always relives past glory.
I bought ZSL at 13.79 one week before the crash and urged robo and others to do the same.
My best topcall ever!
10 years from now I will still be bragging about it.
I still here. I'm still way ahead too having gone in at $12 and $700.
Don't worry about us. Nothing has changed that would change the fundimtals of PM's. PM's espicaly Silver, were manipulated. This fall the prices will continue there upward momentum as TPTB continue to lose "The Economy is recovering" deception game.
Ah oh.
When attacks on gold and silver bugs does not immediately attract six junks we might be bottoming.
There's not much difference between Ben Bernanke and Adolf Hitler.
Ok, the beard maybe.
Also, Ben has no balls vs. just one ball!
Tuco
It made so little sense to me when it was announced that I just tabled it with the rest of the shit that didn't make sense.
Now this makes sense. Thanks, Tyler, I really needed to get back to that senseless shit in a sensible way.
Silver bitchezz !
Blythe is toast !
Jamie can pack his bag and go home.
He's finished.
They are silent because the government and big banks released the PM paper reserve, and beat down the price of metals.
Not a good thing, unless you were waiting for the price to drop.
hey texas, sorry to hear your legislators pussyed out on passing an anti groping bill with any balls. rick perry is just another politician
Since there's nothing much happening at the moment, have a look at this nice Robot bird, designed by the German company Festo:
http://www.youtube.com/watch?v=nnR8fDW3Ilo
These are no longer free markets. They are insane markets!
They are completely manipulated by bureacrats and politicians who believe they are so smart and so superior that they have a right to rule over everyone. They will no only destroy our financial system; they will destroy our freedom, too, before they're finished.
I doubt that this oil release was for political gain. Perhaps the oil producing countries no longer want to accept worthless fiat currency for their precious oil?
New USD $100 bill?
When will the FED print $500 and $1,000 notes for circulation?
My return will be a sure sign of the beginning of the end.
Curious, what are the 3rd & 4th icons ...
1.81 X ??
0.50 X ??
Agreed. That was some scary shit right there. Lizzy, be nice!
I would guess the 1.81 is sports entertainment, ties with the "Bread and Circuses" motif....
As for the 0.5, you got me....
Barrel of oil.
Bruce just got his visual cola indexing ... updated with each new run.
Somewhat surprised she did not use a hockey stick ...
D'oh!!
Yes, it is obvious now...
Edit: ummm iPhone, yes, maybe
i'm w/ you, F_meister. until we get the right answer, how about: $100 = .50 parking ticket?
4th icon is an iPhone, no doubt.
Yup, you just keep buying those PEs Robot of 80 to 180. Yes sir, they go up every day....until they don't. Then try and get out. And if you do not follow the miners anymore how come you post whenever they get ripped. You are one strange dude.
And I still have all my core miners. Since when does any market go straight up without corrections. Yes it has been a pain lately, but as long as you never, never go on margin and keep positions managable, this will work out just fine.
Think I will pass on PCLN.
I think a bounce may be on order for september
Yes, T. D. is a strange dude, but he's "our" strange dude. I agree 100% about your no margin stance. Then you need "zero hedge":)
Tuco Benedicto Pacifico Juan Maria Ramirez
Man. I really, really loved living through the heart of the oil age. I try to appreciate every hot shower I take.
We are going to be hurting really soon, really badly.
I always joke with the kids, that when we're living like the Amish in 30 years, their grandkids will ask me what we did with all the oil and I'll just throw a bunch of happy meal toys on the table.
The Amish will be over-run by hungry gangs out of Philly and Baltimore. They have no chance.
Neither will you.
Concerning Libya:
I am inclined to believe NATO will surrender soon. Gadaffi will be allowed to stay and the contraint will be a single 50 man UN force assigned to do nothing more than ensure the rebel fighters are not prosecuted.
Then NATO will ask when can we expect the oil to restart.
Gadaffi will inform them that he's been selling 150K barrels per day all along to Chad and Sudan and some to Tunisia. He will also inform them that he intends to increase that amount, and the new amount will be 200K bpd -- to those countries.
If Europe would like to purchase oil from him, he will, in a spirit of kindness and letting bygones be bygones be willing to sell to them. The bidding, he will inform them, starts at $500/barrel.
Who would have ever thought that there wasn't enough testesterone in Texas to make the TSA and DHS understand that an inappropriately placed hand is a hand that could come back missing?
Is it really that easy to keep from applying a knee to the chin of a groper when he grabs a couple of testicles? Sounds like a reflex to me.