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| Emergency oil reserves released for refiners |
| 2004-09-24 |
| In addition to the EOR issue, what happens if the Gulf of Mexico is hit by additional hurricanes effecting oil's flow prior to the high driving volume Thanksgiving holiday, plus the other economic real unknowns such as potential energy market jolts for a colder than average, high usage 'heating oil-natural gas winter of 2004-5 season, and or, if the death driven jihad boys breach our beefed up national counter-terrorist measures and some how stage another major attack on U.S. soil, all components for much higher price spikes for the entire energy complex could prove a rough ride over the next 6 months. Is $55 to $60 a barrel oil a realistic temporary target price during the dead of a frigid winter? With crude prices currently heading toward $50 , again, what's another panic driven $5 to $10, with a typical trending reversal of the same amount or more? What goes up should (it used to be will) come down. The bottom line is with supplies of global energy under the gun from various unstable sources, there are very few bears in this bullish energy market these days. The White House on Thursday agreed to tap an emergency oil reserve to help refiners that have suffered supply disruptions from hurricanes that recently pounded the Gulf Coast. Spencer Abraham, energy secretary, said his department had entered into negotiations with several oil companies to provide short-term loans until supply conditions improved. |
| Posted by:Mark Espinola |