So how’s that SPR oil release working out for you?

29Jun/114

So how’s that SPR oil release working out for you?

Remember just a short week ago when Mr. Obama announced with the utmost aplomb the release of Oil from the Strategic Petroleum Reserve? Recall how all of his allies in the MBM hailed it as a masterful SUPER-JEEENYUS! move that would help the economy out, at least in the short term, by removing the extra demands on ordinary folks' budgets that higher gas prices imposed, remove the energy component from the inflation pressure producers were feeling, and, surely only be coincidence possibly reverse the downward trend of his poll rating? Good times, my friends, good times...

At that time, regardless how reckless and cavalier you may have thought the President's policy decision, releasing oil from essentially a rainy-day fund when the sun was shining-so to speak, did you find yourself wondering just how long those short term effects would last? I know I did. And so did some of the professional economists and Wall street types. Depending on your outlook, and whether you counted yourself among Obama's allies, the estimates ranged from weeks to a GAME CHANGER!11!1! that would have an lingering effect through at least the first of the year.

Well if you were a gambler, I hope you took the under; at least based on a check of the commodities markets:

WTL crude oil

Check out the price of West Texas Light Crude(symbol CLQ11), keeping in mind the release announcement bythe IEA was on June 23rd, and Obama's on June 24th.

Unleaded Gas

Now Look at a similar chart for refined Unleaded Gasoline(symbol RBN11), keeping in mind the same release dates.

As you can see, in both cases today's price is higher than at the time of the release announcement. So since the President is into trusting his "gut instincts" these days, I guess we can pin that one squarely on his vaunted BRILLIANCE!, JUDGEMENT!, SOLOMON-LIKE WISDOM, AND NEAR-CLAIRVOYANT-NAY PRESCIENT-INTUITION!

But really, like everything else, this has been just another bad decision, to implement a desperate central command-and-control-economy maneuver, as part of the President's failed economic policy.

Me? In 2012 I'm looking for real change...

What do you think kind reader?

[Cross posted at the Conservative Commune]

Rocketman

Tagged as: fail, Failed economic policies, Obama, Socialism, SPR release Leave a comment

Comments (4) Trackbacks (1) ( subscribe to comments on this post )

Danger
June 29th, 2011 - 15:01

Yeah,

I knew he’d release it, I just thought that he’d wait until any price drop benefit would occcur when the campaign starts to heat up.

Either his ego couldn’t stand his current poll number slide or he’s even dumber than I thought and he believed that the oil price drop would be continuous.

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- Bob Reed
  June 29th, 2011 - 15:43
  
  I’ve heard several commentators contend that this is just a work-up for the campaign season, when he’ll release more as needed to keep the gas prices under control.
  
  Or so he thinks, because this is going to ultimately do the same thing every time. It’ll shake up the price equilibrium for a few days, and then float back towards a more natural price point. The market recognizes a short-term attempt at “gaming” the system.
  
  Now, it would be different if new wells were being tapped to ultimately bring more supply on line. Thta would have more of a lasting effect. Drill baby drill isn’t some empty slogan like “Yes We Can!” :)
  
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jefferson101
June 29th, 2011 - 19:21

Some people just aren’t happy with anything.

When they announced the release from the SPR, gas hereabouts was going for $3.48, give or take a couple of cents. Today, it’s down to $3.42. A six cent per gallon drop is almost 2%.

That’s going to leave me with an extra 40 cents or so a week for the next couple of weeks. Wow. I can feel the economy growing already! My “Consumer Confidence Levels” are surging.

I can afford a small package of chewing gum now that I couldn’t afford before. “Green Shoots abound”, and Lassez les Bon Temps Rouler!”

/sarcasm.

(Yeah, most of you figured that out already, but I’m tired of being abused for being an Obama Supporter when I get snarky. And it do happen regularly enough that I will leave a note for the terminally serious among us.)

;-)

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- Bob Reed
  June 29th, 2011 - 22:51
  
  Dude! 6 whole cents a gallon. Don’t spend it all in one place ;)
  
  Seriously though, that’s not a bad price. Here adjacent to NYC, it was over $4/gallon until this week, when it dropped into the $3.90s.
  
  Over the weekend I’ll be heading to visit my elderly parents in Ocean City, Maryland. In Jersey and Delaware it should be closer to what you’re paying.
  
  I’ll try not to spend it all at the arcade :)
  
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