56 Days to Empty?
The Bush administration's decision to add more oil to the Strategic Petroleum Reserve has added as much as 10 percent to the price of crude, an oil consultant told a Senate panel Tuesday.
The Bush administration has been adding 50,000 barrels a day to the emergency oil stockpile since August, with plans to kick up the pace to 70,000 barrels a day by the end of January.
The Strategic Petroleum Reserve now contains 695 million barrels of oil — enough to keep the U.S. economy running for 56 days if imports were cut off suddenly.
The federal government has been soaking up as much as 0.3 percent of the world's supply of light sweet crude at a time when crude is over $90 per barrel.
My question -- what does the Bush administration know that would make them so eager to add to the Strategic Petroleum Reserve when prices are so high? Is bombing Iran still on the table?
The Bush administration has been adding 50,000 barrels a day to the emergency oil stockpile since August, with plans to kick up the pace to 70,000 barrels a day by the end of January.
The Strategic Petroleum Reserve now contains 695 million barrels of oil — enough to keep the U.S. economy running for 56 days if imports were cut off suddenly.
The federal government has been soaking up as much as 0.3 percent of the world's supply of light sweet crude at a time when crude is over $90 per barrel.
My question -- what does the Bush administration know that would make them so eager to add to the Strategic Petroleum Reserve when prices are so high? Is bombing Iran still on the table?
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 10:03 AM
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