USA Attacks OPEC

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The US to sell all 30M bbls of the "Emergency" Crude Oil

The US government is expected to have no problems finding buyers for all 30M bbls of Crude Oil it will auctioned as part of a Global effort to address high oil prices, an Obama administration official said Thursday.

Crude Oil buyers have expressed Strong interest in the Crude Oil that the United States is selling from its emergency reserves, the US Energy Department said, calling the sale "substantially oversubscribed."

The sale represents half of the 60M bbls that industrialized nations are releasing jointly to fill a gap in supply caused by political strife in Libya.

Analysts say that the Global release is disorganized and has the potential to backfire.

The Obama administration was severely criticized for its decision last week to tap the Strategic Petroleum Reserve ( SPR ) by the Oil industry lobby, and other critics, who said there was already plenty of Crude Oil supplies in the United States and described the move as a political tactic.

"The over subscription of the (US) SPR auction indicates both that supply disruption is a factor and that we will be able to place all 30M bbls into the market," an administration official said.

Almost a dozen Oil companies and trading firms sought more information about the opportunity on a conference call earlier this week, and the Energy Department said it received more than 90 offers for its 30.2M bbls of SPR Crude Oil.

The administration said that also expects help from Saudi Arabia, the World's largest Crude Oil producer, which has committed to produce more Crude Oil to address the supply shortage, the official said.

Paul A. Ebeling, Jnr

 

 

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

www.livetradingnews.com

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

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