In a move which has everyone from oil analysts to traders to petroleum producers scratching their heads, the Obama Administration announced on Thursday morning that the US along with over two dozen other nations will release 60 million barrels of oil from emergency oil stock piles. Half of the total release, or 30 million barrels, will come from the US Strategic Petroleum Reserve.
News of the release, which will be 2 million barrels per day for 30 days beginning about a week from now, hit oil prices in futures trading. West Texas Intermediate crude oil trading in the US, which was already down about $1 on the day, fell more than $3 further to about $91 per barrel. Brent crude, which trades in London, fell almost $7 per barrel
The excuse being used by the Obama Administration and the International Energy Agency for the oil release is that reduced oil exports from Libya are raising energy prices and thus hurting world economies.
Please read the entirety of my article for the American Spectator here:
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