• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Take That Putin: US To Release 5 Million Barrels From Strategic Petroleum Reserve In "Test"

Tyler Durden's picture




 

WTI crude prices are faling rapidly as Reuters reports that the US is set to 'unleash' its Strategic Petroelum Reserves in a "test-sale"...

  • *U.S. TO RELEASE CRUDE FROM STRATEGIC PETROLEUM RESERVE: REUTERS

Of course, this is a direct aim at Putin's pocket-book as his stumbling economy needs high prices to sustain itself. However, the 5 million barrell release is less than a third of the US daily consumption rate (though does sound some alarms we are sure).

 

 

Via Bloomberg,

U.S. to release up to 5 million bbls of crude from Strategic Petroleum Reserve (SPR), Reuters reports, citing govt “source.”

SPR to be test sale, check operational capabilities of system infrastructure; timing unclear

 

By way of reference, this 5 million barrel release compares to average US consumption of around 18 million barrels per day.


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Wed, 03/12/2014 - 10:29 | 4538487 buzzsaw99
buzzsaw99's picture

5M barrels, what a joke.

Wed, 03/12/2014 - 10:31 | 4538499 THX 1178
THX 1178's picture

Commodity war?

Wed, 03/12/2014 - 10:34 | 4538528 Wolferl
Wolferl's picture

Dunno, made me think of that one:

http://www.youtube.com/watch?v=NUHk2RSMCS8

Wed, 03/12/2014 - 10:47 | 4538635 BaBaBouy
BaBaBouy's picture

TEST THIS ...

LONDON GOLD Fixer's Too """FIX""" GOLD At $4500. / Ozs, ""Just A Test""..

Wed, 03/12/2014 - 10:53 | 4538691 pods
pods's picture

In other news, man fails to piss out brushfire.

pods

Wed, 03/12/2014 - 11:00 | 4538740 101 years and c...
101 years and counting's picture

apparently, JPM and GS have some empty tankers they would like to fill at "cheaper" prices.  you know, before war sends crude to $150.

Wed, 03/12/2014 - 11:02 | 4538756 Pladizow
Pladizow's picture

Putin should test release some treasuries?

Wed, 03/12/2014 - 11:27 | 4538911 Boris Alatovkrap
Boris Alatovkrap's picture

USSA Fictional Reserve Banking System is make purchase of Russia treasury holding in beat of heart - current purchase rate of $80B/month is purchase Russia holding in 90 days. Soon, oil, gold, and copper is only commodity of exchange.

... and maybe food, drinkable water, and toilet paper.

Wed, 03/12/2014 - 11:55 | 4539073 Never One Roach
Never One Roach's picture

'Released' right into GS containers.

Wed, 03/12/2014 - 12:06 | 4539118 fonestar
fonestar's picture

Yeah, take that Putin!

And if you still don't want to play ball, the .gov is going to release tons of gold from Fort Knox into circulation!

Wed, 03/12/2014 - 12:51 | 4539290 Herd Redirectio...
Herd Redirection Committee's picture

Tapering is tightening...  You know, like when an alcoholic cuts down from a full 26 to 22-24 oz. of hard liquor daily.  The taper is serious!  The Fed will taper completely uuuh, tomorrow...

Wed, 03/12/2014 - 15:30 | 4539956 The Alarmist
The Alarmist's picture

Let's see ... Average cost of finding and lifting onshore oil in US is roughly $31, average cost of finding and lifting off-shore US oil is roughly $52.  Average cost of finding and lifting oil in the rest of the world is roughly $25.

So, driving down the price of oil is going to hurt whom the most?

Wed, 03/12/2014 - 18:26 | 4540637 mjcOH1
mjcOH1's picture

"5M barrels, what a joke."

 

It's a joke.   But it probably really does take 5M barrels to shake out the as yet unrecognized infrastructure issues, and get the involved parties up to speed on what would be needed to make a significant release work.  Processes will have to be dusted off.  Contacts revisited.

It almost makes sense.   So who the hell hid this from the Kenyan?

Wed, 03/12/2014 - 11:21 | 4538873 Boris Alatovkrap
Boris Alatovkrap's picture

TPTB (Power-That-Be) is assert control by create scarcity of abundant necessity. Is fun and entertainment to watch Power That Be in East challenge Power That Be in West. Of course, when war is break out, which is when and not is if, TPTB (Too-Poor-To-Bother) is pay ultimate price in blood.

Wed, 03/12/2014 - 11:35 | 4538949 CPL
CPL's picture

The outcome of manipulation because of greed is well documented historically and it never ends well for the transgressor.  My favorite story of missed opportunity to correct a problem of greed, a fable from The Brothers Karamazov called The Onion.

Once upon a time there was a peas­ant woman and a very wicked woman she was. And she died and did not leave a sin­gle good deed behind. The dev­ils caught her and plunged her into the lake of fire.

So her guardian angel stood and won­dered what good deed of hers he could remem­ber to tell to God; ‘she once pulled up an onion in her gar­den,’ said he, ‘and gave it to a beg­gar woman.’ And God answered: ‘You take that onion then, hold it to her in the lake, and let her take hold and be pulled out. And if you can pull her out of the lake, let her come to Par­adise, but if the onion breaks, then the woman must stay where she is.’

The angel ran to the woman and held out the onion to her; ‘Come,’ said he, ‘catch hold and I’ll pull you out.’ And he began cau­tiously pulling her out. He had just pulled her right out, when the other sin­ners in the lake, see­ing how she was being drawn out, began catch­ing hold of her so as to be pulled out with her. But she was a very wicked woman and she began kick­ing them. ‘I’m to be pulled out, not you. It’s my onion, not yours.’

As soon as she said that, the onion broke. And the woman fell into the lake and she is burn­ing there to this day. So the angel wept and went away.

Wed, 03/12/2014 - 15:08 | 4539875 emersonreturn
emersonreturn's picture

love you boris.  love Too-Poor-To-Bother!  

Wed, 03/12/2014 - 10:57 | 4538715 Lewshine
Lewshine's picture

Obama is so out of his league with Putin. The later is a Marital Artist, Chess player, Bear hunter, trained in covert operations and various other Alpha male factors. Obama on the other hand is a bitch who has built his whole life on pretense and posing -

This sychophant will get us into the last war we as a nation will ever know.

 

Wed, 03/12/2014 - 11:03 | 4538763 Flakmeister
Flakmeister's picture

You make it like Putin is the kind of guy that you would like to fellate....

Wed, 03/12/2014 - 11:21 | 4538868 Uncle Remus
Uncle Remus's picture

Now who is projecting?

Wed, 03/12/2014 - 11:46 | 4539022 Flakmeister
Flakmeister's picture

Hardly...

Putin is a kleptocratic thug...

Why don;t you ask the people here that fawn over staged photo shoots. They are the ones with the man crush for him....

Wed, 03/12/2014 - 12:55 | 4539303 Herd Redirectio...
Herd Redirection Committee's picture

Yes, and there is a real shortage of kleptocratic thugs in US & EU.  /s

Wed, 03/12/2014 - 13:29 | 4539407 Troll Magnet
Troll Magnet's picture

Flak is a defender of a terrorist state called Israel.  That's really all you need to know. 

Wed, 03/12/2014 - 14:03 | 4539562 Flakmeister
Flakmeister's picture

Taken to trolling during the day have we?

Wed, 03/12/2014 - 14:50 | 4539777 Troll Magnet
Troll Magnet's picture

Lauded any new killings of innocent Palestinean babies today?

Or are you too busy cheering on your Jew bankers as they destroy the world?

 

Wed, 03/12/2014 - 11:14 | 4538832 walküre
walküre's picture

You should interview Putin's wife and ask how good of a perfomer he really is.

Wed, 03/12/2014 - 11:27 | 4538906 corporatewhore
corporatewhore's picture

before i got divorced i thought of myself as a marital artist

Wed, 03/12/2014 - 11:30 | 4538923 Cygnus Nigri
Cygnus Nigri's picture

Yeah but O's a wookie wrestler!

Wed, 03/12/2014 - 11:41 | 4538986 Billy Sol Estes
Billy Sol Estes's picture

Ever seen the ( V ) on a wookie?

 

Wed, 03/12/2014 - 12:58 | 4539310 Herd Redirectio...
Herd Redirection Committee's picture

You mean the (______/\______) surely.

Wed, 03/12/2014 - 13:09 | 4539360 ParkAveFlasher
ParkAveFlasher's picture

Her labes must hang down like oak moss.

Wed, 03/12/2014 - 13:27 | 4539415 Herd Redirectio...
Herd Redirection Committee's picture

Its the view from behind, but thanks for the descriptive imagery.

Wed, 03/12/2014 - 12:34 | 4539234 GoinFawr
GoinFawr's picture

+1 for "Marital Artist":

Skilled at coming up with some story that the trouble and strife will believe.

Anyway, I thought Mr.Putin was divorced...

 

Wed, 03/12/2014 - 12:41 | 4539251 Iam_Silverman
Iam_Silverman's picture

"Obama is so out of his league with Putin. The later is a Marital Artist"

I don't know, it seems that Obama's marriage is pretty "artistic", doesn't it?

 

ETA - in just the time it takes to type a post, I see that I am not the only one who caught that!

Wed, 03/12/2014 - 10:32 | 4538505 Divided States ...
Divided States of America's picture

That decision doesnt hurt just Russia, it hurts the US's buddies Saudi also....this move definitely reeks of Obummer.

Wed, 03/12/2014 - 10:45 | 4538622 replaceme
replaceme's picture

Checkers V Chess. 

Wed, 03/12/2014 - 11:33 | 4538815 CrashisOptimistic
CrashisOptimistic's picture

Folks, this has nothing to do with Putin.

This is a month of $100+ and an awareness, never spoken, that the world cannot survive that high.  It got that high before Ukraine was ever a serious issue.

If Ukraine had never happened, this would have been done.  This is what desperation in a world of scarcity looks like.

And if the sum total of what this can do is $3/barrel, we're in big trouble.

Wed, 03/12/2014 - 10:46 | 4538625 Canadian Dirtlump
Canadian Dirtlump's picture

Indeed. It should have a half life measured in days if not hours. Let's raise rhetoric and dump some oil, while oil will end up rising on political tensions. LOL. These assfucks can't get out of the way of their own stupidity.

Wed, 03/12/2014 - 10:55 | 4538703 beachdude
beachdude's picture

Right. Look at UCO to play this.

Wed, 03/12/2014 - 12:06 | 4539114 Citxmech
Citxmech's picture

Witness the effect:  WTI down a couple of bucks.  Brent is more or less unchanged.  My read is that this will do nothing to prices globally.

Wed, 03/12/2014 - 11:50 | 4539034 rubiconsolutions
rubiconsolutions's picture

Fart in a hurricane.

Wed, 03/12/2014 - 17:54 | 4540530 rotagen
rotagen's picture

Oh boy, we farted a little poot on putin.  Don't blink, you'll miss it.

Wed, 03/12/2014 - 10:29 | 4538489 fightthepower
fightthepower's picture

That should help in a war...

Wed, 03/12/2014 - 10:29 | 4538490 Thorny Xi
Thorny Xi's picture

take that, Bakken

Wed, 03/12/2014 - 10:30 | 4538493 _ConanTheLibert...
_ConanTheLibertarian_'s picture

In response Russia will dump 5 million barrels of $ bills.

Wed, 03/12/2014 - 10:47 | 4538637 Hippocratic Oaf
Hippocratic Oaf's picture

Not Russia, but their buddy China.

Wed, 03/12/2014 - 10:52 | 4538684 RSloane
RSloane's picture

I've been wondering about that. China supports Russia that is clear, but so far they have remained largely silent. We can only speculate about what's being done and said behind the curtain.

Wed, 03/12/2014 - 10:55 | 4538701 pods
pods's picture

Betcha O pisses his pants if the China phone in the White House rings.

pods

Wed, 03/12/2014 - 11:36 | 4538956 sessinpo
sessinpo's picture

pods      "Betcha O pisses his pants if the China phone in the White House rings.

Um, Why?

The holder of most US debt is US citizens. As of one year ago, the US owed itself double what China owns.

People see the headline that China owns the most treasuries of foreign nations, but they leave out the fact it is less then 10% of the debt outstanding.

And as we have seen in the past, what happens when no one is willing to buy our debt?

Answer: The Federal Reserve steps in and buys it.

You would really need a collaborative effort by multiple foreign nations dumping US treasuries.

Wed, 03/12/2014 - 12:16 | 4539152 pods
pods's picture

The holder of most US debt is the US GOVERNMENT, not US citizens.  US citizens are merely responsible for the debts of the government so it is not accurate to state US citizens.

It would not take much to stuff the FED full and cause havoc.  

If the FED were to in a short period of time have to come up with ~1 trillion to buy these, even brain dead amerikans might ask where the money comes from.  And if the FED had to soak up that much of current issuance, who would buy new issuance?

If China were to make a concerted effort to divest in treasuries, rates would move to the upside, and that will be the death knell for the US.

The US can afford the debt at the moment (not counting future "obligations") due to the interest on said debt is far below what a normal market would price it at.

That goes away, kaboom.

pods

Wed, 03/12/2014 - 13:02 | 4539325 Herd Redirectio...
Herd Redirection Committee's picture

What people forget is, the gov't deals in promises.  Thats why the 'promise to pay' is such a pillar for them (the ability to borrow, at low rates).  People also forget THE AMOUNT OF PROMISES the gov't has already made, and the rate at which they make new promises (it far exceeds the rate at which the budget grows).

Promises to gov't employees, promises to veterans, promises promises everywhere.

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