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Surprise oil release targets speculators


Casino67

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business-going_green
MSNBC.com:

Thursday’s surprise release of 60 million barrels of crude reserves is not about keeping oil consumers well supplied. It’s about chasing oil speculators out of the market.

And it seems to be working.

“This is the straw that breaks the camel’s back — this is the tipping point,” said Fadel Gheit, oil analyst for Oppenheimer, a leading investment bank. “The speculators will have to change their positions. Instead of betting on higher prices they have to bet on lower prices."

In a coordinated move, U.S. and European energy officials announced they would release 60 million barrels of oil from strategic stockpiles over the next month after OPEC failed this month to agree on an increase in production. Those extra OPEC barrels were supposed to replace crude output lost when civil war in Libya shut down production.

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From CNN market report:


Commodities
Oil $92.22 +1.20 +1.32%

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We haven't seen $92 a bbl for awhile, but it closed lower yesterday, before the announcement. Reason I never played commodities.
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CNBC described this as a 'genius move by Obama'. Haha, you KNOW they aren't biased, must be true.

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Casino67!

 

CNBC?

 

The stenographers? They have their noses so far up *(&*^ that I am surprised see daylight let alone the truth.

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Casino67!

 

CNBC?

 

The stenographers? They have their noses so far up *(&*^ that I am surprised see daylight let alone the truth.

 

Exactly.

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Was surfing around the tv tubes this AM and heard on FBN that the Saudi's aren't happy about the SPR move. They, and other experts, expect retaliation by OPEC by reducing their oil production. Naturally forcing prices up in the near future. It could turn out to be a long, cold winter.

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