Skip to comments.Strategic Petroleum Reserve WILL be tapped next week
Posted on 04/13/2012 5:02:20 AM PDT by WellyP
Stratigic Petroleum Reserve WILL be tapped next week!
Well, the is a *CHANCE* he could not loot Ft Knox... if, and I repeat “IF!”, there is any Gold currently in Ft. Knox. But clearly, if there is, he has or will loot what’s left.
My presumption is that in any foreign entanglements or agreements (ie, with NK, Iran, Russia, China) that prior presidents have dealt with, it’s so VERY luring, rather than withstand public outcry of raising debt/taxes to cover the issue, to just ship over some chunks of OUR hard-earned gold, with no accountability whatsoever (presuming the next Ft. Knox accounting is not on that particular president’s watch).
Having suffered through a 20 minute idiotic answer from Biden, on the radio with Hewitt (and analyzed by Mark Steyn in derisive laughter), the “tapping” of the strategic reserve will do
NOTHING to oil/gas prices. We are awash in crude. The problem is the dollarization of gasoline. And Obama is directly responsible for that, along with his pals in the Federal Reserve.
We are EXPORTING gasoline. Are Freepers aware of this? The market reduction in domestic gasoline demand should have reduced the price/gal a long time ago. And you may recall GWBush saying we have no new refineries— which is true. Only it hasn’t because the excess capacity is being exported, and the price rise and high plateau maintained. We’ve already reached the tipping point price. People out of work cannot drive to look for new work— at certain economic levels.
But, for the stupid people, obama will “release” the extra oil for a poll bump. And it will not work, one or two cents for a week and a half.
Better to ask obama’s industrial pals who are ALL in China, and the new poorly paid coolie labor is buying their first car— a GM car no doubt. That is the root of the “demand” and we here at home are propping it up.
Having worked there for over 9 years...you are correct...it will be a blip on the radar. You could flush the whole SPR system,flood the refineries and Obammy will export most of it and it will be over in 28 days with NO reserves.
Seems to me that oil prices are based on futures. As long as Obama is President the future is bleak and the price will remain high...regardless of supply! If it looks like Obama is losing the prices will drop like a stone...and then level because biz and demand will pick up if it looks like he is losing! Right now oil speculators are betting he will win!
>Seems to me that oil prices are based on futures.
I slightly disagree. Oil prices are based on a three sided model. The base of the triangle is the supply allotment. This OPEC determined amount is the largest factor. OPEC limits supply to maximize price.
Second, the price is determined by demand. If OPEC misreads the demand by too much then the price goes up, too little then the price goes down.
Third, the price is determined by the value of the dollar. We are in a currency world war, each side is devaluing their currency to re-float their banks debt. Banks are stuck holding assets that are worth far less than book value. A steady rate of inflation will eventually put them back in the black,
Futures come into play as compensatory bets on these three variables.
Did your source ever give you a reason his/her information was wrong?
Another new thread started on a simlar claim:
After years of expansions and upgrades of our existing refineries, plus a decline in our overall demand, we now refine more that the US uses and export the surplus.
then simply making more petroleum available from strategic reserves to refineries won't have an effect on gas prices unless the government sells the petroleum to some oil company at below-market prices
Putting a surplus of oil on the market will lower market prices unless OPEC makes a similar sized cut in production. I am not in any way suggesting that it would be a good idea. The Strategic Supply exists for Strategic reasons and following the outflow, it would need to be refilled reversing any benefit.
It is the same mentality of dropping your insurance to help pay your medical costs.