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| U.S. Still Filling Emergency Oil Reserve | ||||
| 2004-05-17 | ||||
With crude oil trading above $41 a barrel and terrorism fears helping to inflate the price, the U.S. has quietly continued to fill its emergency reserves to the highest level ever -- an amount experts say could be used to bring prices down, Monday's Wall Street Journal reported.
To guard against shortages, the U.S. and other nations have a combined 1.4 billion barrels of oil stored away, as governments have been steadily adding to their stocks since the shock of Sept. 11, 2001.
Experts say oil markets have ignored that supply amid fears terrorist activity could reduce Middle East oil exports. The market's apparent disregard for that safety net has some analysts questioning whether the U.S. should use the reserves -- or even just threaten to use them -- to help calm the market and signal to the Organization of Petroleum Exporting Countries that the U.S. won't tolerate actions to maintain high prices.
Terrorism fears have resulted in a so-called terrorism premium that has pushed up crude prices as much as $5 to $10 a barrel over what supply and demand would suggest, some experts say. The rise of crude-oil prices will be the focus of attention this week when the world's oil producers and consumers gather in Amsterdam for the International Energy Forum, a summit to discuss the market and how to better manage energy supply and demand. Among other things, OPEC and the International Energy Agency will be grappling with why prices have soared, even though supplies seem adequate.
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| Posted by:Steve |
| #5 If it got right down to it how much oil does the USA have? Off the coast of California I understand there are large pools. Gulf of Mexico I hear is also a huge oil surplus. Can anyone answer the question of how many years the USA could be on her own without importing another drop if we were to go after all of the pools of oil within the USA? |
| Posted by: Long Hair Republican 2004-05-17 11:13:34 PM |
| #4 I'm hoping they are setting up a bull trap. |
| Posted by: Shipman 2004-05-17 12:20:01 PM |
| #3 The White House knows there a very strong possibility of disruptions of crude oil from the Persian Gulf, Nigeria, Indonesia, Venezuela and other locations around the globe, and therefore must build stock of crude just in case. With each terrorist attack fear continues to mount in the energy trading pits. We can not rule out $4.00 a gallon gasoline over the summer contingent on developments effecting petroleum price treading. The leadership of al-Qa'ida and OPEC member Iran is also aware that over the short term jacking up the price of crude earns them huge profits to engaged in broad-based on slots against the West. The breaking news of the failed terrorist usage of sarin nerve gas is also ruffling global financial markets. It's difficult to plan for the long term corporate bottom line when energy costs keep rising to record breaking levels with no real end in sight. The rolling wave of petrol fuelled inflation is also a major concern on Wall Street, as it should have been months ago. Issuing realistic prognostications relating to the oil/inflation ratio does not make for bullish stock investors. Because of the tension effecting energy outlooks, we could expect a summer with rolling brownouts in some urban areas and the situation will be made worse the coming summer's temps are scorching hot and supplies of energy are 'reported' to be in running low. Obviously if restrictive EPA regulations allowed for exploration and drilling within the United States we would not be in this mess. It a sad state of affairs when an energy nation such as America needs to import one drop of oil. |
| Posted by: Mark Espinola 2004-05-17 12:07:25 PM |
| #2 Gee... I wonder why we're topping off the petroleum reserves? Is something up, I wonder? Are we thinking the Saudi oil ticks will be getting upset with us someday soon? If so, why? Keep pumping. |
| Posted by: Dave D. 2004-05-17 12:05:45 PM |
| #1 Bwahaahaha |
| Posted by: Frank G 2004-05-17 11:43:53 AM |