Bidders For 30 Million Barrels Of Strategic Petroleum Reserve Disclosed; JP Morgan Requests $158 Mil

[ChromeFoundry]

Source: Zero Hedge

As was previously disclosed, as part of the SPR's auctioning off of 30 million barrels of light sweet crude, bids for a total of 30.64 million barrels of oil at an average bid of $107.20/barrell were submitted by various parties. The only thing unknown was the identity of the parties, which however has now been all cleared up following the release of the complete bid list from the DOE. Probably the most notable (if not completely expected) discovery is that JPM, that FDIC-insured depositor bank, has requested 1.5 million barrels at a price of $105.33 for a total of $158 million. We wonder just what JPM plans on doing with this crude, http://www.zerohedge.com/article/iea-replaces-one-crude-supply-limiting-cartel-opec-another-tbtf-banks">which as predicted, will be transported by vessel, and offloaded at such time as JPM sees fit, probably well after the product is trading at a substantial premium to the purchase price. Other potential buyers include Valero, Vitol, Shell, Conoco, Plains and various other E&P companies. Ironically, JPM wants more crude than Sunoco and Tesoro: so next time one tries to gas up their car, we suggest looking for the JP Morgan gas station. But by far the most important news is that 80% of the bid are based on a vessel-based distribution, meaning it will be weeks if not months before the SPR disposed crude finally makes it into circulation, if at all, and has an actual supply-side benefit. Complete bid list is attached.

SPR Bidders

Read more: http://www.zerohedge.com/article/bidders-30-million-barrels-strategic-petroleum-reserve-disclosed-jp-morgan-requests-158-mill

---

Sounds a little hinkey.
William M. Daley, current White House Chief of Staff to President Barack Obama. He served as U.S. Secretary of Commerce from 1997 to 2000 under President Bill Clinton, and most recently served on the Executive Committee of JPMorgan Chase & Co.

Kleptocracy - alive and well under this administration.

[Hugin]

1. No wonder the price of crude is back up.

Along with gasoline... Up $0.10 in four days.

The speculators are back at the table with their dice in hand.

[madrchsod]

2. i wonder if obama will say anything about this.......

boy did we get taken for a ride...

[banned from Kos]

3. How is that? Morgan paid $9 a barrel more than yesterday's spot price

they overpaid by about $15 million (relative to the market).

[ChromeFoundry]

5. Your Fortune Cookie: "Better fill up your tank today" n/t

[banned from Kos]

6. Dodd-Frank gives the CFTC authority to set position limits and higher margin

requirements which is being put into motion now.

This will cost the speculators much much more when implemented. I say anything that costs Morgan more is a good thing.

[Po_d Mainiac]

7. Different grade of crude.

Not all oil comes out of the ground at the same specs. The grade being released from the SPR is the real sweet stuff.

[banned from Kos]

10. WTI (the sweet stuff) closed at $96 yesterday - enjoy a small victory vs Morgan

please?

Is it that difficult?

And crude is likely going down - it peaks in May/June most years.

[ChromeFoundry]

16. Are you actually saying that you think JP Morgan will lose

money on this deal???? (thanks for the good belly-laugh, in advance)

...and the Obama's investment portfolio will certainly not be losing value any time soon.
http://www.wealthinformatics.com/2011/06/06/president-obamas-income-savings-investments/


The one hand that washes the other, also gets cleaned.

[dixiegrrrrl]

8. and when the price of oil goes up again in the future, they will sell it at a higher price.

THAT is the issue.

[BeFree]

11. And if they are smart

They will probably get us to keep storing it until they can make a profit.

They don't call it 'Black Gold' fer nutting'.

[Roland99]

12. Oil 98.67 +2.04 +2.11%

[bahrbearian]

15. All depends on the Quality of the oil.

[DocMac]

4. Those dice only produce 7's and 11's

[ixion]

9. JPM, Chase, Citibank: In these criminal organizations, you see the seeds of our downfall,

and worse, with the unconditional blessings of the people we elected to reign them in.

[SpiralHawk]

13. "Smirk." - RepubliCorp, Inc. (R)

[OhioChick]

14. True n/t