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France, the U.K. and the U.S. are in talks about a possible release of strategic oil reserves...

France, the U.K. and the U.S. are in talks about a possible release of strategic oil reserves "in a matter of weeks" in order to push fuel prices down, Le Monde reports. The speculation comes as Iran says that talks with World Powers about its nuclear program will take place on April 13.
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Comments (10)
  • bbro
    , contributor
    Comments (9851) | Send Message
     
    But the GOP wants a recession this year....
    28 Mar 2012, 06:12 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    A release will affect prices for a week until speculation drives them up again. Thanks to Bernanke, asset bubbles are here to stay.
    28 Mar 2012, 06:16 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2043) | Send Message
     
    You get two points for adding in speculators and Bernake to villainize but you missed the perfect score for leaving out Obama.
    28 Mar 2012, 07:22 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    I'm politically neutral, but share Austrian economics theory, so see excessive QE and ZIRP as a folly. No, I'm not villainizing anybody. I'm saying it in a matter-of-fact way that there are asset bubbles and try to trade accordingly. Do you trust current stock exchange prices? Do you think the US, Euro and China fundamentals are good? VIX six months futures are very expensive, that tells me others don't trust this bull either. I'm being careful, securing against currency depreciation with a large currency basket, securing against further QE with Gold long positions and shorting the market on a day to day basis wherever I see a chance.

     

    I really do not have a political agenda, other than Wall Street being shark infested waters and current financial market deregulation doing more harm than good.
    28 Mar 2012, 07:41 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2043) | Send Message
     
    I think the US and Europe are in terrible shape. But when I think that and talk about that I talk about that.
    If you were matter-of-factly saying there are asset bubbles and try to trade accordingly you would have said "there are asset bubbles and try to trade accordingly". You mention nothing of trading of any sort in your first comment.

     

    I'm not saying you cannot blame and bring up Bernake or speculators for whatever you want. But don't be surprised at the response you get if you do.
    28 Mar 2012, 10:48 AM Reply Like
  • bbro
    , contributor
    Comments (9851) | Send Message
     
    S&P 500 trading at 1.34 times sales is hardly a bubble....now back in 2000 when it was trading 2 times sales...that's a bubble....
    28 Mar 2012, 06:22 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    Back then you had an economy to speak of. This bull is built on sand, err... I meant built on paper. But what do I know, I'm just a little muppet.
    28 Mar 2012, 06:57 AM Reply Like
  • kmi
    , contributor
    Comments (4041) | Send Message
     
    Saudis have so much crude supply they got nowhere to send it. There is no supply crunch in crude, although data seems to suggest there isn't enough refining capacity, and that crude prices are actually reflecting demand for the refined products.

     

    This whole thing bodes of 'talking down' the price, and I expect it will be ineffective since it doesn't address the issue: no one really needs crude.

     

    Right now it seems everyone but the oil producers are posting trade deficits because of energy, i.e. spending more on the energy feeding the economy than they are making on the goods they are exporting/selling/cons... So energy is clearly an issue for pretty much everyone.

     

    And for want of 'real' measures or 'real' solutions, they are trying to talk prices down. I'll be REALLY surprised if a release of any strategic reserves actually occurs, since it will be completely ineffective.
    28 Mar 2012, 11:26 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    Some economies are net exporters without oil. Germany is a massive net exporter, yet a 100% importer of oil with close to 0% domestic oil production.
    28 Mar 2012, 12:27 PM Reply Like
  • kmi
    , contributor
    Comments (4041) | Send Message
     
    Germans have embarked on an expensive but clearly profitable effort to diversify away from fossils:

     

    "The share of electricity produced from renewable energy in Germany has increased from 6.3 percent of the national total in 2000 to over 20 percent in the first half of 2011.[13] Renewable energy share of gross electricity consumption rose from 10 % in 2005 to 20 % in 2011."

     

    The payoff is not exporting capital on energy consumption, i.e. keeping it in the domestic economy, a worthwhile goal I believe for any economy.

     

    The kicker is that their energy consumption is decreasing as well - down almost 5% 2010-2011 while GDP grew.
    28 Mar 2012, 01:52 PM Reply Like
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