When the Obama regime and the IEA announced two weeks ago that 60 million barrels of the strategic petroleum reserve would be released and prices dropped, everyone thought that it was the wrong timing because prices were falling anyway. Today prices leaped to almost $97 and there is a feeling that the economy is really rebounding as is the demand for fuel. Those two sentiments intersected today in the markets and even the strengthening dollar could not bring the price of crude down.
The bidding for the SPR barrels to be released has been brisk but there are fears that outside of the U.S. these barrels may not enter the market and thus cause genuine shortages for the very areas of the world that need the SPR release most. There also seem to be big problems with the Exxon Mobil handling of the leak into the Yellowstone River. Industry officials believe that the anti-oil bias of the Obama regime may be given even freer rein to tighten production and supply in the U.S.
Today, WTI+$1.94, $96.98; Brent+$2.25,$113.64; RBOB+0.48¢,$2.9774; HO+3.21¢,$2.9566.
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