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Ash4781

Petrol Price War After Oil Stockpile Released

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http://news.sky.com/skynews/Home/Business/Supermarkets-Drop-Petrol-Prices-Oil-Stockpile-Tapping-By-IEA-Sees-Brend-Crude-Cost-Fall/Article/201106416018181?lpos=Business_Second_Home_Page_Article_Teaser_Region_0&lid=ARTICLE_16018181_Supermarkets_Drop_Petrol_Prices%3A_Oil_Stockpile_Tapping_By_IEA_Sees_Brend_Crude_Cost_Fall

Supermarkets are slashing petrol and diesel prices by three pence per litre as world oil costs tumble.

......

Brent crude fell by $8 a barrel on Thursday after the International Energy Agency (IEA) decided to release a stockpile of 60 million barrels over the next 30 days to make up for production shortfalls in Libya.

Fox Business presenter Lauren Simonetti said the rare move was both surprising and controversial.

"Half of those stocks will come from the US - the Strategic Petroleum Reserve here - and that has only been tapped three times in history," she told Sky News.

"This tapping will be the biggest ever."

The extra oil, only the third emergency release in the IEA's 37-year history, will increase global supply by around 2.5% for the next month.

Does this act in a similar way to QE?

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Unlike QE, once it's used up you can't just print more.

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Unlike QE, once it's used up you can't just print more.

Presumably at some point they'll be massive restocking. MErv will say it's temporary.

Edited by Ash4781

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I've been wondering how the hell this works. Who releases the oil and sells it to whom? When, where and at what price?

60 million barrels is less than one day's global consumption. Can that really have such an effect on supply and demand in the oil market?

Lot of smoke and mirrors here I feel.

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"The extra oil, only the third emergency release in the IEA's 37-year history"

is this the start of something?...........what do they know that we don't?.....

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Oil prices tend to move with events rather than simple supply and demand factors. They went up with Libya and would have stayed at that price until another event came along. Unusually in recent years, the next event represented a shift down in prices. This might last well past the extra supplies are used, it might not. All depends on what the next event is. Very sentiment driven market IMO.

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Bernanke can't have inflation running rife when he wants to action qe3. He needs deflation so he can fight it. I see engineered deflation everywhere and this is a deflation move. Watch for qe3 under a new name in a month or so.

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They're so the good guys always acting on behalf of the average folk to keep their living costs down.

It sounds like petrol consumption is going down so nothing like an increase in supply to help to drop prices a bit and get them hooked again. Seeing as it's partly coming from store maybe they need some more revenue seeing as prices are high. Who knows.

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It sounds like petrol consumption is going down so nothing like an increase in supply to help to drop prices a bit and get them hooked again. Seeing as it's partly coming from store maybe they need some more revenue seeing as prices are high. Who knows.

US leads the way - decline in stocks exceeded by decline in consumption:

http://maxedoutmama.blogspot.com/2011/06/oh-thursday.html

Headed for $60? When it gets there or thereabouts I'll be filling up ... with energy shares.

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Bernanke can't have inflation running rife when he wants to action qe3. He needs deflation so he can fight it. I see engineered deflation everywhere and this is a deflation move. Watch for qe3 under a new name in a month or so.

Indeed. This release of oil is complete horse shit and the shortfalls in Libya line is lame at best.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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