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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"...


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:

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


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.


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


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.


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.


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.

Wed, 03/12/2014 - 13:07 | 4539352 Froman
Froman's picture

Of course the Chinese are backing the Russians.  This situation is a test proxy to see what the reaction of the West is so when China annexes Taiwan and other Southeast Asian countries they will know exactly what Obozo's playbook contains and how to respond; with Russia's blessing.

Wed, 03/12/2014 - 10:57 | 4538716 Urban Redneck
Urban Redneck's picture

There is only one appropriate response-

Putin: Mr. Obama, I'll see your 5 million barrels and raise you five million barrels.  You can think it over Saturday and Sunday while we stop pumping oil for export for 48 hours.  Come Monday - call, raise and release 20 million barrels from your strategic reserves, or fold... 

Wed, 03/12/2014 - 10:30 | 4538497 Hohum
Hohum's picture

5M barrels is about 7 hours of US consumption.  Anyway, keep releasing the SPR, watch the price fall, and then witness the drillers pulling back.  The marginal costs to drill US oil approaches $100.

Wed, 03/12/2014 - 11:39 | 4538969 sessinpo
sessinpo's picture

Hohum  "Anyway, keep releasing the SPR, watch the price fall, and then witness the drillers pulling back."


Actually, the reverse may happen and prices rise. Why? Because everyone knows the SPR has to be refilled by whatever amount was released.

Don't forget, we are talking about Obama that can't get anything right.

Wed, 03/12/2014 - 10:32 | 4538500 Phuk u
Phuk u's picture

All done without firing a shot

Wed, 03/12/2014 - 10:33 | 4538517 jcaz
jcaz's picture

"All done to insure shots are fired"

Fixed that for ya......

Wed, 03/12/2014 - 10:32 | 4538503 Max Damage
Max Damage's picture

What happens when you have released all your reserves Obummer?

Wed, 03/12/2014 - 11:06 | 4538783 john39
john39's picture

no worries... aircraft carriers will be retrofitted to run on biofuel from pond slime.  yes we can. 

Wed, 03/12/2014 - 11:40 | 4538980 BandGap
BandGap's picture

Perhaps you missed the last cold war. Aircraft carriers went nuclear n 1961.

Wed, 03/12/2014 - 13:08 | 4539355 Herd Redirectio...
Herd Redirection Committee's picture

Yes, what an idiot, doesn't he know the whole MIC runs on nuclear?

I'm getting something in my ear-piece about "fact-checking" and "don't post".  Hmmm.

Wed, 03/12/2014 - 10:32 | 4538504 Smuckers
Smuckers's picture

And also sell it for USD?  That would be a test indeed.

Wed, 03/12/2014 - 10:34 | 4538506 _ConanTheLibert...
_ConanTheLibertarian_'s picture


Wed, 03/12/2014 - 10:33 | 4538508 SubjectivObject
SubjectivObject's picture

Yeah, since the per capita more intensive Iranian sanctions worked so well.

Hint:  It is not the Russians being played here; unless they've emigrated to the US maybe.

Wed, 03/12/2014 - 10:34 | 4538511 HamRove
HamRove's picture

Isn't that the equivalent of bringing a knife to a gun fight?....cuz that seems fraught with potential blowback.

Wed, 03/12/2014 - 10:33 | 4538515 Mrmojorisin515
Mrmojorisin515's picture

"Of course, this is a direct aim at Putin's pocket-book as his stumbling economy needs high prices to sustain itself."


That's funny, i thought that was the case with all oligarchies, which seems to rule every country in the world at the moment.  All of our "enemies" seem to look exactly like the united states when you look in the mirror.

Wed, 03/12/2014 - 10:33 | 4538518 AlmostUncirculated
AlmostUncirculated's picture

Maybe China soon will unload some other "asset" (increasingly) in return ?

Wed, 03/12/2014 - 10:34 | 4538522 q99x2
q99x2's picture

Hey quit picking on the idol of our gay military personel.

Wed, 03/12/2014 - 10:35 | 4538523 JustObserving
JustObserving's picture

And how about printing $100 billion just to be prepared?   The Fed is only printing $65 billion a month and wars are so damned expensive these days - the wars in Iraq and Afghanistan cost $6000 billion versus $738 billion for the Vietnam war ( all in 2011 dollars).

Wed, 03/12/2014 - 10:46 | 4538627 Flakmeister
Flakmeister's picture

They are not printing anything...

Those excess reserves will never make it to Main Street...

They exist in a kind of monetary purgartory...

Wed, 03/12/2014 - 10:57 | 4538718 pods
pods's picture

By design flak. That is the lifeblood of the zombie banks. Borrow at 0%, use to buy treasuries, then park at the FED and make the skim.  


Wed, 03/12/2014 - 11:07 | 4538787 Flakmeister
Flakmeister's picture

Correct to a point, the banks aren't engaging in the carry trade like that... The treasuries are on the Feds balance sheet...

The banks borrow from the Fed to buy treasuries that are sold back to Fed and the loan paid off... It is monetizing the deficit in a semi-sterile way...

Wed, 03/12/2014 - 11:21 | 4538877 walküre
walküre's picture

Still, a quasi circle jerk where the in-crowd makes billions annually. The shareholders get crumbs. Couldn't let the poor banker slobs starve now, could we? Gotta keep up the illusion that they're actually doing something to warrant massive salaries and bonuses. Stock options aren't worth a hoot unless they can offload their options into a Fed induced stock market. It's a nice gig - for them and for them alone.

I see Porsche sales are up. For every 1 Porsche sold, 1000 VWs are being parked. That's the new "normal", the new economy. Completely bogus and unsustainable. For every 1 wealthy participant we have a few thousand who are no longer participating. They were at some point able to participate but they've been outsourced or fired for the sake of the bottom line. The bottom line looks great so that a guy like Heinz CEO or Walmart CEO can retire with triple digit million Dollar golden parachutes.

When is it enough? What else needs to happen to wake people up?

Wed, 03/12/2014 - 11:33 | 4538936 Flakmeister
Flakmeister's picture

No argument from me....

Just because I understand how something works doesn't mean I approve of it...

There is "no end" to it in the sense that normalcy will presume in the aftermath... When the Fed loses the ability to prop the current system up, and that system is more than just the parasites we love to hate here, a subsistence agrarian society is in the offing...

Wed, 03/12/2014 - 11:37 | 4538960 pods
pods's picture

Don't know about you flak, but I don't mind the smell of cowshit.


Wed, 03/12/2014 - 11:43 | 4538996 Flakmeister
Flakmeister's picture

Nor do I....

If it was only so simple...

Wed, 03/12/2014 - 11:43 | 4538993 sessinpo
sessinpo's picture

Flakmeister  "Those excess reserves will never make it to Main Street..."


That amount is so small no one would notice so it is irrelivant.

Wed, 03/12/2014 - 10:34 | 4538531 Devotional
Devotional's picture

So, have they been hoarding oil? Are you telling me that government has been keeping oil thus manipulating the fucking price higher? Bloody ASSHOLES!!!

Wed, 03/12/2014 - 10:35 | 4538537 spanish inquisition
spanish inquisition's picture

"In other news China just bought 5M barrels of oil."

Wed, 03/12/2014 - 10:36 | 4538545 Spungo
Spungo's picture

If Putin really wanted to fuck up the US economy, he would have his people spread trillions of fake, high quality US dollars. We did that to Iraq in the past.

Wed, 03/12/2014 - 13:16 | 4539378 zuuma
zuuma's picture

I'll volunteer to receive the first couple pallets of


Worst case scenario: I can heat the house by putting 'em in the wood stove.

Wed, 03/12/2014 - 10:37 | 4538551 LoneStarHog
LoneStarHog's picture

Most of the oil in the SPR is not sweet crude, but sour crude.  Many refineries can't process sour crude due to the sulfur content, which is more costly to refine, also.

Five million barrels is like Ms. Obozo dropping five pounds off that fat ass of hers.

Wed, 03/12/2014 - 10:51 | 4538674 Flakmeister
Flakmeister's picture

Simply wrong on so many fronts with just enough facts to make it seem plausible...

Wed, 03/12/2014 - 10:55 | 4538704 Spastica Rex
Spastica Rex's picture

Since that's a government website, everything you claim about "global climate change" and "peak oil" is just NSA and Jewish propaganda.

How'd I do?

Seems like a slow day; just trying to lend a hand.

Wed, 03/12/2014 - 11:15 | 4538842 Flakmeister
Flakmeister's picture

Anyone in particular that you are trying to channel?

Sounds like you're bored silly...

The SPR currently represents about ~ 280 days of US oil imports from the Persian Gulf (2.3 mmbpd) + Russia (250 mbpd....)

Wed, 03/12/2014 - 11:39 | 4538976 Spastica Rex
Spastica Rex's picture

Bored? Oh, yes: I'm painting doors today. I'm waiting until it's warmer outside, 'cuz I'm doing it in the garage.

I wasn't channelling anyone in particular. Many replies on ZH sound like they were generated by a computer. I was just trying to fail the Turing test.

Wed, 03/12/2014 - 11:53 | 4539059 superflex
superflex's picture

How his assertion that there's more sour than sweet wrong.  According to your link there's 343 MM barrels of sour and 261 MM barrels of sweet in SPR storage.

It does cost more to refine sour than sweet due to the hydrotreaters.  Again, he was correct.  Not all refinaries can process sour crudes.  Marathon's Catlettsburg refinery in KY is a prime example.

Did you wake up on the wrong side of cave this morning?

Wed, 03/12/2014 - 10:37 | 4538552 bhakta
bhakta's picture

Obama's stupidity never ceases to increase it seems? 5 million barrels  is suppsoed to rock the markets when the USA consumes I guess 80++ million barrels every single day? Why does Obama talk about democracy, and then do just the opposite. It seems the people in Crimea are making their own choices, what is it to Obama?


Wed, 03/12/2014 - 10:46 | 4538626 astoriajoe
astoriajoe's picture

 80 million b/d is closer to global consumption, not USA.

Wed, 03/12/2014 - 11:20 | 4538869 bhakta
bhakta's picture


According to the US Dept of Energy, the USa uses something over 18 Million barrels per day, not 80 Million. My apologies for an inaccurate number abvoe.

Wed, 03/12/2014 - 10:37 | 4538556 Cornholiovanderbilt
Cornholiovanderbilt's picture

Sounds like Reid pelosi and the gang were short crude oil futures yesterday.  Dam it feels good to be a gangsta!

Wed, 03/12/2014 - 10:39 | 4538569 SpanishGoop
SpanishGoop's picture

Good strategy, sell your reserve now.

I think i will sell my gold which i was holding for worser times, to.


Wed, 03/12/2014 - 10:39 | 4538574 jtlien
jtlien's picture

They would do this for the blessed people of Ukraine.

Were were they this winter when most rural people in the USA were shivering with NO propane?

How about a strategis propane reserve?


Wed, 03/12/2014 - 10:40 | 4538583 Spastica Rex
Spastica Rex's picture

I'm going to fill up my 1 ton and then drive to the mall.

JCPenny, here I come!

Wed, 03/12/2014 - 10:42 | 4538598 wmbz
wmbz's picture

 The Obozo  playing checkers.

Wed, 03/12/2014 - 10:56 | 4538706 1stepcloser
1stepcloser's picture

More like Hungy Hungry hippo

Wed, 03/12/2014 - 13:15 | 4539374 ThisIsBob
ThisIsBob's picture

He used to play marbles but he lost them all.

Wed, 03/12/2014 - 10:43 | 4538607 Seize Mars
Seize Mars's picture

Headline: "Spoiled Child Spends his Savings to Trump his Rival"

Wed, 03/12/2014 - 10:48 | 4538651 Mine Is Bigger
Mine Is Bigger's picture

Is this a Ukarine's gold for U.S. oil scheme?

Wed, 03/12/2014 - 10:51 | 4538673 Sufiy
Sufiy's picture

Grand Scale Financial War is ongoin now.

Oil and Copper are the weapons against Russia and China, Gold is the weapon of Choice By China and Russia. China seems to be win - win so far: lower OIl and Copper prices and higher Gold!

Gold Breaks $1,360 As US Dollar Slides Further Dow

Gold breaks $1,360 today with US Dollar sliding down to 79.63. China's worries and Ukraine situation are putting futures under pressure. Could it be that the Copper slump is the counter strike at Chinese shadow financial system in the ongoing Financial War? We will never get the clear answers here, but US Dollar is sliding further today and Copper at this levels can not indicate the healthy growing economy.    Gold is climbing the "Wall Of Worry" in its new Bull market and we have a lot of calls that this rally will be short lived. Shorts will be surprise and will have to cover again providing more fuel to this move.

Wed, 03/12/2014 - 10:51 | 4538679 slightlyskeptical
slightlyskeptical's picture

This actually forebodes a supply interuption down the line. $6-8/ gallon gas is not out of the question later in the year.

Wed, 03/12/2014 - 10:53 | 4538680 Yen Cross
Yen Cross's picture

  Look at the volume in the DOW. What a fucking joke these markets are! Just few TBTF and HFT assholes playing toss the potato every fucking day.

Wed, 03/12/2014 - 10:52 | 4538685 FieldingMellish
FieldingMellish's picture

Saudi's won't be happy about this. Then again, pissing off a few Arabs has never had any consequences... right?

Wed, 03/12/2014 - 10:54 | 4538699 1stepcloser
1stepcloser's picture

Let me guess they released it into the Gulf..

Wed, 03/12/2014 - 12:28 | 4538700 Rising Sun
Rising Sun's picture

yep - WW3 will be done with drones and banks


too much work to repair mass destruction like that lost generation that flattened Europe not once, but twice in 30 years


I mean really, how fucked was that???

Wed, 03/12/2014 - 10:56 | 4538708 ejmoosa
ejmoosa's picture

There's no reason to be selling oil from our strategic reserves----unless you either need the cash or you want to weaken the US when it's really needed.


I'll go with the latter reason.

Wed, 03/12/2014 - 10:56 | 4538709 yogibear
yogibear's picture

Russia and China along with other countries need to dump the petro dollar and US treasuries now. Do it big! Announce your no longer accepting a currency backed by nothing but war mongers.

Wed, 03/12/2014 - 10:59 | 4538731 John McCloy
John McCloy's picture

   How many are in the Med Sea yesterday after the sinking of Morning Glory by Libya? 

   Does anyone even believe these guys when they say they are releasing reserves? They have likely just been lying about it for headlines for years like they lie about everything else released by .gov. We are at the lying phase now..the fudging stage was the first 4 years post collapse.

Wed, 03/12/2014 - 11:08 | 4538796 Cacete de Ouro
Cacete de Ouro's picture

"I've been talking to Vicente Fox, the new president of Mexico .. to have gas and oil sent to U.S. .. so we'll not depend on foreign oil." George Dubya, Presidential debate, Oct. 3, 2000

Wed, 03/12/2014 - 12:07 | 4539117 Billy Sol Estes
Billy Sol Estes's picture

What he meant was to denationalize their reserves from PEMEX so XOM and RDS can get a piece as well.

Wed, 03/12/2014 - 11:10 | 4538809 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

This has nothing to do with the Russians has to do with the Sauds and Qatar over the Muslim Brotherhood.

Wed, 03/12/2014 - 11:12 | 4538818 atsoft888
atsoft888's picture

Such war will destabilize Saudis, Nigeria far more then Russia. I think it is not on US cards...

Wed, 03/12/2014 - 11:50 | 4539039 sessinpo
sessinpo's picture

atsoft888      "Such war will destabilize Saudis, Nigeria far more then Russia. I think it is not on US cards..."

The US and UK are already looting Saudi gold held in London.


Wed, 03/12/2014 - 11:13 | 4538824 DutchMadness
DutchMadness's picture

Well, they say it is against Putin, but in fact they mean Venezuela...

Wed, 03/12/2014 - 11:15 | 4538838 The Pop In
The Pop In's picture

"Negotiating with Obama is like playing chess with a pigeon. The pigeon knocks over all the pieces, shits on the board and then struts around like it won the game." - Vladimir Putin -- Accurately descriptive, but cannot be attributed to Putin.

Wed, 03/12/2014 - 11:16 | 4538844 beavertails
beavertails's picture

OPEC will be mobilizing AL Qaeda in the USSA.  Watch for Shiek visits to the WHite House and pictures of a bowing Obama.

How's that for a BOOMERANG potus?

By the way, can't wait for Congressional Debate and Approval for War (ahhhhh, I mean military action) as the US population is way against any intervention. 

Wed, 03/12/2014 - 11:20 | 4538867 The worst trader
The worst trader's picture

Just to piss Putin off I guess. Hurt him in the pockets is the sneaky way.

Wed, 03/12/2014 - 13:04 | 4539339 Clycntct
Clycntct's picture

It's all fun till someone gets their Tresureye poked out.

Wed, 03/12/2014 - 11:24 | 4538892 the grateful un...
the grateful unemployed's picture

you can gain leverage with even 5 million bbls. first step loan the oil to private enterprise, that oil goes into their storage tanks (like reserve money goes into the vault of large banks from the fed) the new owner counts that as their inventory. when the tanker from SA arrives, do you need any oil, you say no thanks i am full. the price of oil drops. this is why oil traders don't care about inventory. additionally the usg is primarily interested in keeping oil prices where they are, because asset values move as a class, and if one should fail (even gold) it could drag everything, including housing and the feds balance sheet, down with it. and since hedge funds are holding oil they have similar interests, buy the oil and hold it as collateral which can be leveraged even further (and considered the feds inflationary policy, that works in the long term) when the real users build storage on borrowed oil and have no need to buy more, more oil goes into hedgefund or longterm storage which is what the SPR is all about, remember. so we move oil from one long term storage to another, and use that movement to control the price of oil, both short term and long term.

Wed, 03/12/2014 - 12:59 | 4539314 CrashisOptimistic
CrashisOptimistic's picture

Dood, the strategic petroleum reserve IS a storage tank.

Wed, 03/12/2014 - 14:25 | 4539635 NoDecaf
NoDecaf's picture



"like reserve money goes into the vault of large banks from the fed"..... LOL

Wed, 03/12/2014 - 11:37 | 4538958 cristo
cristo's picture

isn't the STRATEGIC PETROLEUM RESERVE of the USA set aside in case of a disaster or WAR .

I guess the USA has no intention to go to war over this . Very bad chess move from Obozzo .

Wed, 03/12/2014 - 11:44 | 4539008 Zwelgje
Zwelgje's picture

Doesn't the world use 85 million+ barrels per day?

Wed, 03/12/2014 - 11:53 | 4539062 d_taco
d_taco's picture

 Remarkable Gartner jus came up with this idea this morning on RT.  It seems the US is desperate.

Anyway it will blow away US tight oil industry.


Wed, 03/12/2014 - 13:00 | 4539320 Clycntct
Clycntct's picture

Woo Ho Cheap gas! Moar Woar.

Now I can fill up my pickup and drive around with gleeful abandon.

Woar is good.

Wed, 03/12/2014 - 13:02 | 4539323 ThisIsBob
ThisIsBob's picture

Which frees up 5 million barrels for BP to "process" and export.

Wed, 03/12/2014 - 13:48 | 4539488 SmittyinLA
SmittyinLA's picture

With an enemy alien President, reducing leverage over Russia is always policy, and make no mistake reducing the current stock of the stretegic petroleum reserve is REDUCING OUR LEVERAGE OVER RUSSIA. 

If we really wanted to piss off Russia we could deport 30 million illegal aliens and reduce US oil consumption by 10%. 

But that would piss of the looter EU bankers more

Wed, 03/12/2014 - 14:00 | 4539546 SmittyinLA
SmittyinLA's picture

Gee a surprise release from the SPR would effect the oil futures market, I wonder who had a windfall?

Wed, 03/12/2014 - 14:40 | 4539713 monad
monad's picture

I hope the boomerang takes out the perps.

Wed, 03/12/2014 - 14:50 | 4539776 TDoS
TDoS's picture

5 million barrels, or less than one third of US domestic daily demand. 

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