Obama's Oily Desperation

[Geee]

American Spectator:

In a move that has everyone from oil analysts to traders to petroleum producers scratching their heads, the Obama Administration announced on Thursday morning that the U.S. 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 U.S. 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 U.S., 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.

However, the Saudis have already said they would increase production to offset losses from Libya -- and they have done so. More importantly, and partly in reaction to the Saudi move, oil prices had fallen almost 20% in about six weeks since peaking near $115 in early May over fear about Libyan and Middle Eastern unrest.

The idea that the federal government needed to knock oil prices down further or faster for economic purposes while oil was already in what would be considered a dramatic sell-off is simply not credible.

[righteousmomma]

Its nice when the article makes a reply for our opinions as in:

 

This will be President Obama's first line of rhetorical defense for his premature exudation: "See, I lowered your gas prices." Unfortunately, he may well get away with that among some sections of the population, especially with those who incorrectly give the president credit for the 40-cent drop in gasoline since early May. In that sense, perhaps the timing of Obama's move is clever in a most cynical way -- the only way in which this Administration is ever clever: cause a small drop in gas prices but take credit for a big drop.

 

 

 

Of all the misguided policies implemented during the Obama Administration, this release of oil from our Strategic Petroleum Reserves is the most puzzling and the most representative of its utter cluelessness about markets, business, and economics. It sends multiple wrong messages. The little that it might accomplish will be temporary. And the longer-term response by markets and businessmen will be more than an equal and opposite reaction.

[Jill]

Stupid-O is just doing this out of desparation, too bad it can't be stopped. The Strategic Petroleum Reserves is supposed to be for THIS country in a time of war or other crisis, not for the entire world or to try to lower gas prices to re-elect some asshat.

[Pepper]

Stupid-O is just doing this out of desparation, too bad it can't be stopped. The Strategic Petroleum Reserves is supposed to be for THIS country in a time of war or other crisis, not for the entire world or to try to lower gas prices to re-elect some asshat.

Jill

 

Doncha know, this is a crisis. The ManChild is in deep doo doo. He needs a boost for 2012.

 

If we were to burn all of the releases, we would go through it in 2 days. Whew, that will make a big difference.