Crude is at 106.. wow This is starting to look serious with crude. It looks like the Fed has lost control of the situation. If I were the President, I would announce a HUGE reserve opening. I mean 3x as much as anyone would expect. This would serve to stop the rise momentarily. Without that, the crude speculators will not be stopped. * Thanks. I added more context.
Ummmmmm are we supposed to make posts of quotes of commodities which anyone can view by going to quote.com? Just checking
Momentarily is the key word, as in for about three nanoseconds. If he really wants to stop the rise, he should take Palin's advice, "drill, baby, drill". Open ANWR, opening drilling off the California coast, open drilling in the gulf, and lift restrictions on converting shale to oil.
Dont worry about prices, within the next week or so they will announce they are tapping the reserves and prices will drop at least 10% when that news is announced. There is no way this economy can handle higher prices, eventually oil will collapse, this time though its not going to be at $150, its going to be a bit lower than that.
The Fed has nothing to do with what's occurring in the Middle East almost since the fall of 2010 of which is directly related to rising Oil prices nor any other period. Also, even if the reserves were open...it will only "slow down" (not stop) rising prices in comparison to the spikes as long as the Middle East crisis continues, rising food prices et cetera. Another major problem, civil wars and so on...$150 is a possibility. In my opinion, I would leave high prices as they are (don't open the reserves) as another notice to reduce dependency upon oil via using alternatives (e.g. car pool instead of driving alone, walk/bike to the store instead of driving and many hundreds of common sense solutions to help reduce dependency). My point, it's going to take a an involvement of every one (including you and I) to slow down, stabilize or drop Oil prices. It's no longer a one man show or blame that one person. Mark
Also the Fed has nothing to do with every other commodity which started soaring exactly since the Fed started monetizing debt with this Fed we won't be able to afford even a bike within a year
Like I said, it's no longer a one man show...we are all at fault for rising Oil prices. Yeah, some more that others (e.g. Middle East crisis) but we all are holding hands on this. Try to do your part at home, I'll do the same and hopefully every one else will do their part in a concert togetherness...what are the odds of that happening. By the way, hopefully the U.S. doesn't send troops into those countries...if that happens...we'll see $150 regardless if reserves are open or not. Mark
Until the very next day when Iran or Venezuela announces they'll be producing less. It's not an issue of supply. The world is awash in oil. Releasing oil would do nothing.