Everything Obama does is political, Why release Oil reserves now?

[The Rabbi]

It reduces the emergency supply the US has.

...To levels equivalent to 2006. And it's about 5% of reserves. Oh, and it's not guaranteed immediate delivery

We have refineries here in the US. We do not have large supplies of crude in the US.

our refineries are near capacity, which explains why so much of our crude is refined outside the US.

You're flagging here.

...more keyboard kommando!

OK so you agree we have less oil in the reserve, and the reserve is meant for our security. Thus we have less security.
You seem to be agreeing with me with every post. I wonder what you're arguing about?

 

[The Rabbi]

It's coming down because the reserves are being sold. That will happen any time a large amount of a commodity is sold.



So in your opinion the government shouldn't use the strategic reserve to moderate speculation, protect the economy and draw a profit? Oh wait, Obama did it...nevermind.

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Well, I appreciate you admitting that it was a tiny portion of the reserves - which we can now replace at a lower price.

Assuming that buying, transporting, and storing the oil are free.

Yet another fail. You seem on a role here.

 

[thereisnospoon]

It's coming down because the reserves are being sold. That will happen any time a large amount of a commodity is sold.



So in your opinion the government shouldn't use the strategic reserve to moderate speculation, protect the economy and draw a profit? Oh wait, Obama did it...nevermind.

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Well, I appreciate you admitting that it was a tiny portion of the reserves - which we can now replace at a lower price.

You're evading the issue which is Obama used the SPR for political purposes.
The release caused a temporary drop in oil prices caused by ........speculators....Hmm, I thought those bastards want prices to rise!!!! Now it's ok for those formerly evil speculators to do their thing as long as it's YOUR thing.
BTW genius, that price dip of about 6% lasted less than 24 hours. The NYMEX price for West Texas Light Sweet Crude was back to pre release levels by 10am the next morning.

 

[The Rabbi]

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Well, I appreciate you admitting that it was a tiny portion of the reserves - which we can now replace at a lower price.

You're evading the issue which is Obama used the SPR for political purposes.
The release caused a temporary drop in oil prices caused by ........speculators....Hmm, I thought those bastards want prices to rise!!!! Now it's ok for those formerly evil speculators to do their thing as long as it's YOUR thing.
BTW genius, that price dip of about 6% lasted less than 24 hours. The NYMEX price for West Texas Light Sweet Crude was back to pre release levels by 10am the next morning.

8537 might be the dumbest poster who can string a sentence together. Every assertion is wrong on facts or wrong on logic.
Yes, he is avoiding the main issue: why would Obama release reserves when there was no, zero, reason to do so? The answer must be political. But even then he's a loser, as the fall in price wasn't that much.
Obama is the worst president in history. And that includes Warren Harding, another president who got into trouble with oil reserves (see, Teapot Dome).

 

[8537]

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Well, I appreciate you admitting that it was a tiny portion of the reserves - which we can now replace at a lower price.

Assuming that buying, transporting, and storing the oil are free.

Yet another fail. You seem on a role here.

What are you talking about? The oil gets transported all over the world. Transporting it from Mexico to California is no greater expense that transporting it from NOLA to the Northeast.

 

[8537]

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Well, I appreciate you admitting that it was a tiny portion of the reserves - which we can now replace at a lower price.

You're evading the issue which is Obama used the SPR for political purposes.
The release caused a temporary drop in oil prices caused by ........speculators....Hmm, I thought those bastards want prices to rise!!!!

Either you don't understand the role of speculation in the market or you're just avoiding the facts. Increasing the supply of oil to the market decreases the value of futures contracts, which in turn reduces the value in a long speculators portfolio.

But hey, you stay classy!

 

[The Rabbi]

Well, I appreciate you admitting that it was a tiny portion of the reserves - which we can now replace at a lower price.

Assuming that buying, transporting, and storing the oil are free.

Yet another fail. You seem on a role here.

What are you talking about? The oil gets transported all over the world. Transporting it from Mexico to California is no greater expense that transporting it from NOLA to the Northeast.

Genius. It costs money to transport and handle the oil. So refilling the reserve could cost more than the oil sold brought, because there are transaction costs on both ends.

You really aren't very bright, are you?

 

[8537]

Assuming that buying, transporting, and storing the oil are free.

Yet another fail. You seem on a role here.

What are you talking about? The oil gets transported all over the world. Transporting it from Mexico to California is no greater expense that transporting it from NOLA to the Northeast.

Genius. It costs money to transport and handle the oil. So refilling the reserve could cost more than the oil sold brought, because there are transaction costs on both ends.

Holy shit! You're kidding, right? Oh wait, you're serious? Really?

Hint: The price of transportation is built into the price of the oil. And those aren't transaction costs. Have you ever noticed that the price of oil is not proportional to the distance the oil traveled to reach the pump?

 

[The Rabbi]

What are you talking about? The oil gets transported all over the world. Transporting it from Mexico to California is no greater expense that transporting it from NOLA to the Northeast.

Genius. It costs money to transport and handle the oil. So refilling the reserve could cost more than the oil sold brought, because there are transaction costs on both ends.

Holy shit! You're kidding, right? Oh wait, you're serious? Really?

Hint: The price of transportation is built into the price of the oil. And those aren't transaction costs. Have you ever noticed that the price of oil is not proportional to the distance the oil traveled to reach the pump?

Really? If I buy oil in NY and want it refined in New Orleans it costs nothing to get it there? I guess pipeline companies, shipping outfits, and truckers work for free. As do the people who staff the Strategic facility.
You are truly dense.

 

[8537]

Really? If I buy oil in NY and want it refined in New Orleans it costs nothing to get it there? I guess pipeline companies, shipping outfits, and truckers work for free. As do the people who staff the Strategic facility.
You are truly dense.

If you buy oil in NY, it won't be put in a truck in Albany and shipped to NOLA for delivery back to you. It's a bit too fungible for your little scenario.

Why aren't gas prices directly correlated with distance from refineries? Why isn't the price of of Coca Cola correlated to distance from production? How can it be that paper produced in Oregon costs the same in California, Texas and Vermont?

 

[The Rabbi]

Really? If I buy oil in NY and want it refined in New Orleans it costs nothing to get it there? I guess pipeline companies, shipping outfits, and truckers work for free. As do the people who staff the Strategic facility.
You are truly dense.

If you buy oil in NY, it won't be put in a truck in Albany and shipped to NOLA for delivery back to you. It's a bit too fungible for your little scenario.

Why aren't gas prices directly correlated with distance from refineries? Why isn't the price of of Coca Cola correlated to distance from production? How can it be that paper produced in Oregon costs the same in California, Texas and Vermont?

Does paper produced in Oregon cost the same in Maine? I don't know.
But again you are blowing smoke out your ass with no proof and a bunch of opinions unbuttressed by any fact.
I think I am done with you for today. Come back tomorrow. Maybe you'll be smarter then.

 

[8537]

Really? If I buy oil in NY and want it refined in New Orleans it costs nothing to get it there? I guess pipeline companies, shipping outfits, and truckers work for free. As do the people who staff the Strategic facility.
You are truly dense.

If you buy oil in NY, it won't be put in a truck in Albany and shipped to NOLA for delivery back to you. It's a bit too fungible for your little scenario.

Why aren't gas prices directly correlated with distance from refineries? Why isn't the price of of Coca Cola correlated to distance from production? How can it be that paper produced in Oregon costs the same in California, Texas and Vermont?

Does paper produced in Oregon cost the same in Maine? I don't know.

Then let me help you out: The answer is yes.

 

[The Rabbi]

If you buy oil in NY, it won't be put in a truck in Albany and shipped to NOLA for delivery back to you. It's a bit too fungible for your little scenario.

Why aren't gas prices directly correlated with distance from refineries? Why isn't the price of of Coca Cola correlated to distance from production? How can it be that paper produced in Oregon costs the same in California, Texas and Vermont?

Does paper produced in Oregon cost the same in Maine? I don't know.

Then let me help you out: The answer is yes.

Proof?
Nah. You don't need any. Because you KNOW it's true. Right?
In fact gasoline costs different amounts in different states. So does every other commodity. And in Hawaii the most because of....transportation costs.
Thanks for playing.

 

[uscitizen]

We can start with, we didn't. Oil has already come down.

It's coming down because the reserves are being sold. That will happen any time a large amount of a commodity is sold.

As noted here many times.
Second, the strategic petroleum reserve is not a commodity speculation fund for the government. It is there for a very specific purpose. And shoring up presidential ratings isn't it.

So in your opinion the government shouldn't use the strategic reserve to moderate speculation, protect the economy and draw a profit? Oh wait, Obama did it...nevermind.

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Umm the rivers were flooded disrupting crude delilveries to refineries and the flood also such down refineries.
So how did releasing more oil that could not get to the refineries which were shut down help anything at all after Katrina?
Bush's release was symbolic and political as well.

 

[The Rabbi]

It's coming down because the reserves are being sold. That will happen any time a large amount of a commodity is sold.



So in your opinion the government shouldn't use the strategic reserve to moderate speculation, protect the economy and draw a profit? Oh wait, Obama did it...nevermind.

Answers to your question.....No and No..
The SPR exists for national emergencies such as major supply interruptions due to natural disasters such as Katrina. Or in case of war or insurgency.
The Reserve is not a political tool for the chief executive.
The size of the SPR release by Obama last week was just two days worth of US Consumption but it will take 3 weeks to replace it. By law that oil MUST be replaced.
Obama was simply trying to shore up his political base.
It didn't work.

Umm the rivers were flooded disrupting crude delilveries to refineries and the flood also such down refineries.
So how did releasing more oil that could not get to the refineries which were shut down help anything at all after Katrina?
Bush's release was symbolic and political as well.

It stabilized the price of oil.

 

[uscitizen]

Yeah it sure did

I remember how the gas prices were. And I personally do not care about the oil prices I just buy gas.
The gas prices rose becuase the refineries were shud down becuase of the storm and flooding.
Releasing more oil did not help the gas prices.

It was political, Bush was trying to regain ground after the heck of a job Brownie did.

 

[The Rabbi]

Yeah it sure did

I remember how the gas prices were. And I personally do not care about the oil prices I just buy gas.
The gas prices rose becuase the refineries were shud down becuase of the storm and flooding.
Releasing more oil did not help the gas prices.

It was political, Bush was trying to regain ground after the heck of a job Brownie did.

So how much bounce did he get out of releasing the oil?
Oh, none you say.
I guess that wasn't the reason. But thanks for playing.

 

[8537]

Does paper produced in Oregon cost the same in Maine? I don't know.

Then let me help you out: The answer is yes.

Proof?

I knew you were a complete joke, but this is new territory even for you.

 

[The Rabbi]

Then let me help you out: The answer is yes.

Proof?

I knew you were a complete joke, but this is new territory even for you.

 

[Harry Dresden]

I hope somebody driving a tractor trailer runs over that stupid motorcycle.

you have to actually ride it for that to happen.....i doubt its even his Bike....