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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buzzsaw99's picture

5M barrels, what a joke.

BaBaBouy's picture


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

pods's picture

In other news, man fails to piss out brushfire.


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.

Pladizow's picture

Putin should test release some treasuries?

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.

Never One Roach's picture

'Released' right into GS containers.

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!

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...

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?

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?

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.

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.

emersonreturn's picture

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

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.


Flakmeister's picture

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

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....

Herd Redirection Committee's picture

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

Troll Magnet's picture

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

Flakmeister's picture

Taken to trolling during the day have we?

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?


walküre's picture

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

corporatewhore's picture

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

Cygnus Nigri's picture

Yeah but O's a wookie wrestler!

Billy Sol Estes's picture

Ever seen the ( V ) on a wookie?


Herd Redirection Committee's picture

You mean the (______/\______) surely.

ParkAveFlasher's picture

Her labes must hang down like oak moss.

Herd Redirection Committee's picture

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

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...


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!

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.

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.

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.

beachdude's picture

Right. Look at UCO to play this.

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.

rotagen's picture

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

fightthepower's picture

That should help in a war...

Thorny Xi's picture

take that, Bakken

_ConanTheLibertarian_'s picture

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

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.

pods's picture

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


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.

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.


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.