Crude Oil Plunges On U.S. Strategic Petroleum Reserve Release

The U.S. Department of Energy (DOE) will release 30 million barrels of Crude Oil, over the next 30 days. Currently, the world produces just over 87 million barrels a day (MBD) , with the U.S making up just under 10 MBD of that total. With the U.S. consuming 19 MBD, it imports about one-half of daily requirements.

The U.S. Strategic Petroleum Reserve (SPR) is at a historically high level at 787 million barrel or approximately a 39.8 day supply (787 – 30 = 757/19 = 39.8) should events shut down all imports. Crude Oil prices were already sliding, based upon forecast weakness in the U.S. economy. With supplies increasing and demand dropping, oil prices faced a double whammy and were below $90/bl at one point today.

Meanwhile, Gold is holding its own as investors seek a “safe haven” based on increasing inflation. Traditionally, the dollar, U.S. Treasury Debt Securities and Gold have been the big three safe havens.
The Master of Disaster

About wfoster2011

Disaster researcher and current financial and economic news and events: Accidents, economics, financial, news, nature, volcanoes, floods, earthquakes, fires; airplane, ship & train wrecks; tornadoes, mine cave-ins, hurricanes, pestilence, blizzards, storms, tzuami's, explosions, pollution, famine; heat & cold waves; nuclear accidents, drought, stampedes and general. Futures trader using high volume and open interest futures markets. Also, a financial, weather and mundane astrologer with over 30 years of experience. Three University degrees from California State University Northridge: BS - Accounting MS - Busines Administration BA - Psychology Served in the U. S. Army as an Armored Platoon Leader in the 5th Battalion, 68th Armored Regiment, 8th Infantry Division (Retired). Have published three books and 36 articles available for sale through my blog: Commodology - Secret of Soyobeans (Financial Astrology) Timing is the Key (Financial Astrology) Scum City, a fiction novel (no longer available, under contract to major publisher) Currently resident of Las Vegas, NV, USA
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