Oil below $105 amid possible reserves release

[Julian Englis]

Source: Businessweek

Oil dipped below $105 a barrel Thursday in Europe on expectations that Western nations will release some crude reserves to push energy costs lower.

Benchmark oil for May delivery was down 63 cents to $104.78 by early afternoon European time in electronic trading on the New York Mercantile Exchange. The contract fell $1.92 to settle at $105.41 per barrel in New York on Wednesday. Brent crude for May delivery was steady down 21 cents at $123.95 per barrel in London.

France's prime minister said Thursday that he there was "a good chance" that the United States and Europe will agree to release oil reserves into the market to drive down crude prices.

U.S. officials denied a report several weeks ago that said the U.S. and Britain were planning a coordinated reserves release. France confirmed this week that the talks were ongoing and that it was part of them.

Read more: http://www.businessweek.com/ap/2012-03/D9TQ4V680.htm

[cstanleytech]

1. Obama needs to make a statement that he has no plans release any from the reserves imo

Than, when the price spikes high release the reserves and i mean a hell of alot of them not just a little but enough to make the speculators cry long and hard with thoughts of suicide.

[pnwmom]

2. Why? So he can be called a flip-flopper?

[cstanleytech]

3. That would be minor compared to what they have been calling him since he was sworn into office.

[chervilant]

5. Actually,

I suspect this will be one of Obama's "chess moves" when we're closer to the election: release enough reserves to drive the price of gas down. Voila! More votes!

[liberal N proud]

6. That makes no sense

But if he calls their bluff by preparing to release some reserves, the oil companies will back down on prices. The one thing they don't want is the system diluted with reserve oil.

[Snake Alchemist]

7. Or tell the he's going to release it and then don't, so the one's betting he would will be soaked.nt

[NickB79]

9. He could release ALL the US oil reserves and not break the cycle

The US holds enough oil in strategic reserve to supply the world with only 10 DAYS of oil. Releasing it all could indeed drive down the price of oil significantly, but it would rebound in 6 months or so as demand uses it up. In fact, it could actually make things worse, because everyone would know the US would then have to buy new oil to refill their reserves, supplying a known, future demand to bet upon.

Does anyone honestly think that one jolt to the system would forever eliminate speculators from the oil markets? Following the Great Recession a few years ago, oil dropped from $140/barrel to $40/barrel, and many speculators lost their shirts. Now, they're right back in it.

[msongs]

4. buy high, sell low. there's a great business plan lol nt

[Smilo]

8. It really doesn't matter......... ALEC and the Oil Companies

are determined to keep the price as high as possible, especially the closer we get to November.