US to request that UK release emergency oil reserves

Blue Peter · Post by **Blue Peter** » 15 Mar 2012, 16:03

This just tweeted by Linda Yueh of Bloomberg:

Linda Yueh ‏ @lindayueh
RT @pdacosta: Britain expects formal request shortly from United States to release emergency oil reserves -- UK sources

I wonder why that would be,

Peter.

emordnilap · Post by **emordnilap** » 15 Mar 2012, 16:18

Surely that should be 'strategic', not 'emergency'?

Maybe they've (USA/Israel) decided to nuke Iran.

Blue Peter · Post by **Blue Peter** » 15 Mar 2012, 16:24

Now she tweets:

Linda Yueh ‏ @lindayueh
Details Report of agreement on oil release inaccurate, Obama aide says

What does that mean? It hasn't been decided yet? Was never even discussed?

Peter.

Tarrel · Post by **Tarrel** » 15 Mar 2012, 16:36

http://www.bbc.co.uk/news/uk-politics-17377386

David Cameron and Barack Obama discussed the possibility of releasing emergency oil reserves during talks in Washington, the BBC has learned.

No final decision was taken, but BBC political editor Nick Robinson said it was a sign of the president's concern at the high level of US fuel prices.

The UK has previously released oil from its reserves as part of co-ordinated efforts to dampen soaring prices.

Surely this wouldn't work. It would just be a further acknowledgment that we are at the limits of supply, thus pushing prices higher. Or am I wrong?

PS_RalphW · Post by **PS_RalphW** » 15 Mar 2012, 16:44

They (us and the US) released 60M barrels last year, at about this time, on the excuse of the Libyan uprising, but in reality the initial price spike to $127 had already passed, and price was about $120.

I fully expect another release in the next couple of months, regardless of Iran. It is acknowledgement of global peak oil supply by limited release from reserves at the peak summer demand season, an attempt to avoid a 2008 scale price spike triggering another oil shock.

I just hope we don't attack Iran just to provide a cover story for this year's SPR release. We are unlikely to get another Libya on cue - Syria is too big a nut, and too small an exporter.

[edit]

Brent dropped $1.50 on the news, so the markets take it seriously.

Post by **clv101** » 15 Mar 2012, 16:49

FT's headline is:
Oil prices fall on talk of reserves releases: US and UK reportedly set to announce bilateral move

extractorfan · Post by **extractorfan** » 15 Mar 2012, 16:51

Blue Peter wrote:Now she tweets:

Linda Yueh ‏ @lindayueh
Details Report of agreement on oil release inaccurate, Obama aide says

What does that mean? It hasn't been decided yet? Was never even discussed?

Peter.

Perhaps they were talking about soil reserves? tin foil reserves?

pesky inaccuracies.

Aurora · Post by **Aurora** » 15 Mar 2012, 19:19

The Guardian - 15/03/12

Britain and the US have been in talks about a joint release of national oil reserves in a desperate bid to subdue soaring crude and petrol prices.

UK officials confirmed that David Cameron and Barack Obama had discussed a presidential oil stock plan, at an Oval Office meeting on Wednesday.

Speculation that two oil users and producers were preparing to co-operate in this way sent the price of Brent crude spinning down by $3 a barrel.

The price later crept back $2 to sit at $124, still a very high price by historic standards though short of the record $148 hit in mid-2008.

Both Cameron and Obama are under similar political pressure from motorists and consumers in their own countries from soaring fuel costs.

Article continues ...

Eternal Sunshine · Post by **Eternal Sunshine** » 15 Mar 2012, 21:49

That's a great long term strategy. Well done boys.

RenewableCandy · Post by **RenewableCandy** » 15 Mar 2012, 22:23

"They do say" that a large part of the summer is known, in the USA, as "the Driving Season". I wonder why people drive more in the summer? Do they work more days? Do they have to drive more? If they didn't, wouldn't that solve the problem without having to raid the emergency stash?

woodburner · Post by **woodburner** » 15 Mar 2012, 22:32

They probably have so much snow in the winter, people don't drive much. Spring comes and they have to load their guns into the pickup and head off to shoot the available wildlife.

bigjim · Post by **bigjim** » 16 Mar 2012, 00:17

RenewableCandy wrote:"They do say" that a large part of the summer is known, in the USA, as "the Driving Season". I wonder why people drive more in the summer? Do they work more days? Do they have to drive more? If they didn't, wouldn't that solve the problem without having to raid the emergency stash?

I think that a lot of them take to the highways and interstates come their summer hols.

madibe · Post by **madibe** » 16 Mar 2012, 00:48

I think that a lot of them take to the highways and interstates come their summer hols.

Saves on a flight to the Canaries or Majorca tho luv

Post by **kenneal - lagger** » 16 Mar 2012, 03:48

Lower fuel prices the summer before an election would do Dave's friend Barack's chances no harm at all. This is politics after all.

Cynic? 'course I am!

woodburner · Post by **woodburner** » 16 Mar 2012, 06:25

This topic shows what a crap benefit twitter is. A few words and you can totally mislead the world, and affect oil prices to the extent of $3 a barrel.