They tapped the SPR!!

Lets see if it works today...

 

thanks for the heads up ...

just reading the news now on the wires ...

- Bodman, speaking on CNBC, said the decision to release reserves was made late Tuesday. -

-"In a word. It is going to be done," Bodman said. "Last evening it was approved and I think you'll be seeing an announcement about it later in the day. So we are doing everything we can to be responsive."-

-He said the reserve was contained in five sites, four of which are operative. The site in New Orleans is not.-

-Bodman said it was too early to say how much oil would be released.-

 

Great, I am sure it will have no effect on gas prices in the US for weeks, but its great for the futures.

Hope things improve for those affected by Katrina.

 

np. it remains to be seen whether this will have a lasting impact...imo if oil doesnt go lower today it is going a lot higher, a lot.

 

A totally and completely meaningless gesture at this point in time.

 

Could someone explain the reasoning behind broken refinery and high oil price?

I agree broken refinery = high price for gasoline. But it would seem to mean that there would be spare crude oil to be sold elsewhere...? and therefore bring the price down?

 

I'm not trying to explain why and how the futures pit sets a price, but Katrina has shut down about 1 million bbls/day of Gulf oil production. At this point there may be damage to the oil production infrastructure that if extensive will curtail future production. Finally, hurricane season has a couple of months to go.

DS

 

Thanks Doug

 

Well, saw a comment on the news last night as to the management of this regarding the refineries (exxon etc) , the insurance companies (who actually rule the planet ) and retailers and ordinary food/basics etc.

To summarise, simply.
"This is too big to expect companies, or the government to have much effect on, the costs WILL be passed on to consumers."
My emphasis, but you get the picture.
If its correct that the louisiana port system supplies even a fraction of the goods distrobution network in the states, well...thats not good . It will take a month or 2, even with military assistance to clean up this mess.

 

what about all the excess profits the arabs are making on their scarcer oil? aren't they going to invest it in an economy big enough to take billions, ie US?