Posted: Fri Nov 02, 2007 10:56 am Post subject: Re: France Releases 285,000 Tons Crude From Strategic Stocks
The significance of this is not the amount of oil released, but the fact that any oil was released from a strategic reserve without any obvious need, i.e some natural disaster. Did a hurricane hit France? No. This evidence of growing oil scarcity flies directly in the face of optimistic, and now apparently b.s. statements from Opec and others (Lynch) that there is plenty of oil, the problem is just political (ME) or hedge funds etc. So, the average dumb ass may believe that crap, but those who are PO aware realize this represents the first sign of a true oil scarcity problem surfacing in a major western market.
Joined: Oct 23, 2004 Posts: 5882 Location: New Jersey
Posted: Fri Nov 02, 2007 10:33 pm Post subject: Re: France Releases 285,000 Tons Crude From Strategic Stocks
Yergin says oil market needs slap in the face in the form of SPR releases.
Frankly, I think it may be Yergin that needs the slap in the face. Keep in mind that he participated in the "oil shockwave" simulation yesterday with Washington insiders. His comments are so wrong lately that I'm starting to think he is some type of disinformation expert in regards to trying to debunk PO.
Quote:
France releases oil from its reserves
Posted by Ed Crooks on November 2, 2007 in Europe , Oil
There was a flurry of excitement in the oil market this afternoon when it appeared that France had decided to release oil from its strategic reserve. The truth was less dramatic: the government was actually releasing 285,000 tonnes - about 2m barrels - of diesel and heating oil to offset problems at two refineries, and the oil was not coming from its strategic petroleum reserve.
All the same, the story raised the question of whether, given all the talk about whether today's oil price is a speculative bubble, US and other governments should release enough oil from their reserves to give the speculators a bloody nose. If they succeed, they can replenish their stockpiles at much lower prices.
The history of currency interventions suggests they are most successful when markets have got far out of line with fundamentals, and intervention acts as a slap in the face to bring the market back to reality. Daniel Yergin of Cambridge Energy Research Associates argues that oil prices are becoming "decoupled from the fundamentals of supply and demand." If he is right, then an intervention in the oil market just might work.
It would, admittedly, be a gamble. When all the commercial players seem to want to be long of oil, it would be a brave energy minister who decided to go short. Much better to get Opec to do the job for them.
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Posted: Thu Nov 29, 2007 8:55 am Post subject: Re: France Releases 285,000 Tons Crude From Strategic Stocks
DantesPeak wrote:
Frankly, I think it may be Yergin that needs the slap in the face. Keep in mind that he participated in the "oil shockwave" simulation yesterday with Washington insiders. His comments are so wrong lately that I'm starting to think he is some type of disinformation expert in regards to trying to debunk PO.
Well, I always suspected Mike Lynch is a disinformation agent. I mean, if you have followed his statements in the last five years, you couldn't possibly honestly believe all that he's said without being schizophrenic or going through some serious self-doubt. If there is one out there, why not two? _________________ What are you doing about peak oil?
I am doing this
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Joined: Oct 15, 2004 Posts: 2185 Location: Arkansas
Posted: Thu Nov 29, 2007 9:46 am Post subject: Re: France Releases 285,000 Tons Crude From Strategic Stocks
As for Lynch being a disinformation mole? At one time, in 2004, the Wall Street Journal reported he worked as a consultant for Saudi Aramco. I can't find the article, bc I don't have a subscription to search their 2004 articles. When I asked him about this relationship on the thread for him on this board, he wouldn't address it. So, I believe he's a paid mouthpiece for the Saudis.
If you pull up Lynch's website, he does admit advising Opec Secretary General on long term oil forecasts.
Quote:
Advised the Secretary-General of OPEC on long-term oil prices
Joined: Apr 09, 2007 Posts: 5848 Location: Alaska (its much bigger than Texas).
Posted: Thu Nov 29, 2007 11:06 am Post subject: Re: France Releases 285,000 Tons Crude From Strategic Stocks
The release of oil from national strategic reserves is being done mainly for domestic political reasons. The French government can now say it is "doing something" about the high oil prices.
The democrats in the US have been calling for releases from the US strategic petroleum reserve for the same basic reason.....its pure politics. _________________ "People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf." -- George Orwell
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