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
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 (
) 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
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.