Saturday, May 17, 2008

US will stop sending oil into strategic reserves


High gas prices posted at a Shell gas station in
Redwood City, Calif., Wednesday,May 14, 2008, as
a Toyota Prius hybrid drives by. Gas prices roared
above $3.75 a gallon Wednesday, while oil prices
fell as an Energy Department report gave a mixed
picture of the nation's petroleum reserves. At the
pump, the average national price of a gallon of
regular gas rose 2.6 cents overnight to a record
$3.758 a gallon, according to AAA and the Oil Price
Information Service. Gas prices are 67 cents higher
than a year ago, and are expected to continue rising
at least until the Memorial Day weekend.
(AP Photo/Paul Sakuma)

File this under: When news sources try to create catastrophes which aren't.
The Energy Department says it has canceled oil shipments into the Strategic Petroleum Reserve beginning in July when the current purchase contract expires.

The move came days after Congress passed legislation requiring the president to suspend the shipment into the reserve in hopes of lowering gasoline prices.

...

The reserve is 97 percent full, holding 701 million barrels of crude.

I'm sorry, but 97 fucking percent seems pretty fine at present.

I do think, from a layman's point of view, the measly oil reserve shipments will affect the price of oil as much as SPIIDERWEB™ affects foreign policy. Its all politics, folks, and don't ya forget it.

BTW, I predicted $5 oil (can't find the fucking link). I may have shot too low.

Note: Headline links to source.

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