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Betapeg (< 20)

Obama Socks Oil Speculators

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June 23, 2011 – Comments (3) | RELATED TICKERS: USO , SZO , OIL

Right in the mouth with this one. Glad I'm short on oil. 

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Oil Traders: Tapping Reserve Was 'Genius' Move by Obama

With US crude prices already down 16 percent from their April high, pundits and politicians everywhere were asking Thursday: "Why would President Obama tap the Strategic Petroleum Reserve when oil prices were already falling?”

 

The answer is simple: Obama knew this would have the maximum impact, hitting speculators on the chin, according to traders.

 

“Arguably the timing of the release is genius,” said Stephen Weiss of Short Hills Capital. “If the SPR had been released as crude worked higher, the effect would have been relatively momentary, but releasing it now, with the momentum on crude prices turning down, will add to the price decline as speculators hit their stops and margin limits more quickly forcing them to sell.”

 

 

http://www.cnbc.com/id/43514254 

 

 

3 Comments – Post Your Own

#1) On June 23, 2011 at 9:38 PM, ChrisGraley (28.53) wrote:

Brilliant!

If I'm OPEC, I'm certainly not thinking about a 90 million barrel reduction in supply.

Don't mess with community activists that get handed Nobel peace prizes before they ever do anything. 

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#2) On June 24, 2011 at 1:11 AM, Betapeg (< 20) wrote:

Wow, you really hate Obama. 

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#3) On June 24, 2011 at 12:45 PM, ChrisGraley (28.53) wrote:

Not really, just his boneheaded ideas.

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