U.S., allies to release 60M barrels from oil reserves over the next 30 days

[NNN0LHI]

http://www.washingtonpost.com/business/economy/us-allies-to-release-60m-barrels-from-oil-reserves/2011/06/23/AGhcVKhH_story.html

By Steven Mufson and Zachary A. Goldfarb, Updated: Thursday, June 23, 8:54 AM

The United States and its industrial allies in the International Energy Agency announced Wednesday that they would release 60 million barrels of crude oil from reserves over the next 30 days. The news immediately sent oil prices down about five percent.

The release would be the biggest ever coordinated from strategic reserves, and over the next month it would exceed the amount of oil lost on world markets since the fighting in Libya. Half of the release would come from U.S. reserves.

[unionworks]

1. Then Why

...Aren't gasoline prices dropping like a rock?

[sinkingfeeling]

2. Crude is down $5.00 a barrel since this was announced.

[Schema Thing]

3. are you into maths at all?

[unionworks]

5. Sorry but...

I am in Erie Pa. (apologies for bringing you Tom Ridge and sick Rantorum) and we are paying 3.60. Maybe I'm old fashioned but i don't consider that cheap, especially being unemployed after the manufacturing economy was wiped out here. I drive what I can afford, which certainly isn't a Chevy
Volt or Hybrid, I drive a Crown Vic with a V-8 that will be literally an antique next year. Then why did I buy such a dinosaur, you ask? Durability for the little money I had to spend.

[happyslug]

8. Not Math understanding how the Market works

As a general rule, a price increase at the well-head take takes four weeks to get from the well head to the local gas station, but any DECREASE in price at the well head (Which in effect this will be) takes eight weeks to get to the local station.

This is a concept of "price Stickiness" it is a well know phenomenal in economics. It relates to the issue that no one wants to take a loss, thus when costs are increasing, people rise their price in anticipation of the price increase, but when it comes to decreases in cost, people want to sell what they have in inventory at they purchased the items at, not a the new lower price.

Thus this will affect the price of Gasoline come September, just in time for the fall home heating season (Most people buy Home Heating Oil in the Fall for winter).

[unionworks]

10. Thanks Happyslug!

That does make it easier to understand.

[safeinOhio]

4. Paid $3.33/gallon in Toledo yesterday.

Price was 20 cents/gallon more just across the Michigan boarder. $3.33 is about 85 cents cheaper than 3 months ago.


I'm just hoping that the oil bubble burst and catches big bucks hedge funds and too big to fail banks holding lots of futures.

I just got 42.2 miles per gallon on a 500 miles drive in my new 2012 Focus by driving 63 mph. We can all help by trying best we can to use less, drive less and go slower. I do get flipped off for going slow, but at my age, who cares?

[unionworks]

6. Great...

...mileage for you!!!:applause:

[MadHound]

7. Which means that in three, six or twelve months, the price of gas will go back up

As we refill the SPR.

Great, just great.

[Viking12]

9. In other words, 18 hours worth of the world's oil consumption

yawn.

[moondust]

11. Can't the Republicans stop this?

You know, take some hostages or whisper the "filibuster" word?

Think of the poor speculators and oil companies (likely Republican backers)!

OMG, this might help the middle class and the economy! Help!!!!

:sarcasm: