Why isn't Obama doing anything about $100 oil?

[woolldog]

It's going to kill the recovery if oil prices stay at this level and we could slip into another recession. If that happens, it will end his chances for re-election.

Why isn't he taking this threat seriously?

[phleshdef]

1. Right, he hasn't been engaged in recent middle eastern issues at ALL, right?

[Pale Blue Dot]

2. It's currently at $102.

http://chart.finance.yahoo.com/t?s=CLJ11.NYM&lang=en-US®ion=US&width=300&height=180

[Freddie Stubbs]

3. What action should he take?

[Davis_X_Machina]

5. Invade Iraq.....

....they've got lots of oil.

Oh, wait a second....

[Kolesar]

11. The war will pay for itself! ... eom

[rpannier]

69. Invade Spain

No reason
Just applying dumbya logic

[slackmaster]

102. Invade Canada

It almost makes sense now.

[ChairmanAgnostic]

104. ALL WRONG. Belgium.

In honor of Sir Douglass Adams.

[GSLevel9]

4. What recovery?

It's a global commodity. It has value, supply and demand dictates this. A temporary break from state/fed fuel taxes would help

[SidDithers]

6. Specifically, what do you want him to do?...nt

Sid

[The Velveteen Ocelot]

7. What is he supposed to do?

[Warren Stupidity]

8. Why isn't Obama doing anything to cure cancer?

Enough is enough already. People are dying! Why doesn't he stop cancer RIGHT FREAKING NOW!

[liberal N proud]

9. Obama is not connected to the oil industry the same way the last schmuck was

[rpannier]

66. And we saw how well that worked (for DUMB-ya)

He just called up those oil sheiks and told them to turn on those spigots and out gushed 100 dollar bills

[AtomicKitten]

10. Haley Barbour, is that you?

http://www.metronews.ca/calgary/world/article/790030--republican-says-obama-cheers-for-higher-gas-prices

[woolldog]

14. Haley Barbour might be on to something.

I'd hate to believe that's true, but it makes sense.

[BklnDem75]

17. When you find yourself agreeing with an idiot...

it's time to take a step back.

[woolldog]

19. Even a broken watch is right twice a day..... nt

[BklnDem75]

29. Which is why I'd vote in a broken watch over him.

He's just never right.

[quakerboy]

63. Im not sure that I agree with you on this

But that is an awesome line.

[Ikonoklast]

98. Not if both hands fell off.

Barbour is that type of broken watch; useless in every way.

[Jennicut]

24. Oh please. Get a grip. Oil prices will not stay low forever.

Even Exxon says there is not huge oil finds to be made. We are dependent on foreign countries and we can't increase domestic production enough to cover our addiction.

[phleshdef]

48. That something likely being a helpless farm animal.

[rpannier]

67. Let's see...

Barbour is an idiot
On some levels Chu is correct.
Barbour is an idiot and a horse's ass (sorry horses no offense intended)
It would be nice if people got rid of less fuel efficient vehicles
Barbour is an idiot, a horse's ass and dimwit.

[woolldog]

12. What should he do?

Several ideas:

Gas tax holiday, release of oil for the strategic oil reserves, announce increases in domestic production and pressure the Saudis and OPEC to pump more. That said, the problem isn't supply. There's a ton of supply. It's fear and uncertainty. But these measure would flood the market with even more oil, which would make it even harder to justify current prices. Plus it would just help if he showed some serious engagement on this issue. He needs to show that he's on it and concerned about it.

If oil stays at these levels, we're going to slip back into recession. Can't understand why he's so nonchalant about it. He needs to be on this. This is a bigger threat to his re-election chances than any Republican.

[Jennicut]

23. Saudi Arabia might not have the ability to pump more.

They said they would but many believe it is a lie. http://www.businessinsider.com/oil-spare-capacity-2013-2011-2

Anyone who thinks we will have cheap oil forever is basically living a lie anyway.

[bigwillq]

42. I appreciate you coming up with a list

of potential solutions. :thumbsup:

I believe we need to stay on top of this oil issue. I also believe that it could make the economy slip into another recession. There aren't really any immediate fixes to the energy crisis. But something needs to be done soon. The price of oil is affecting everybody's lives on a daily basis...from the cost of heating oil, gasoline prices, to how much fruits and veggies are at the market.

[Fearless]

53. Gas tax holidays hurt your localities because there is less funding for roads.

The oil reserves do not contain enough oil to change the price. In fact, going to the extent to release much of it would scare the price even higher. I agree however that he needs to show initiative on the issue, but I don't see these as viable options.

[Uzybone]

55. I dont think the Strategic Reserves should be touched until there is a SHORTAGE

not just high prices.

If high prices force Americans to actually rally for cleaner renewable energy then I hope oil goes up to $500 a barrel.

[vaberella]

62. He can pressure the Saudis and OPEC?

No President has successfully done that.

[hatrack]

73. "Announce increases in domestic production"? Once "announced" it becomes true, by fiat?

US domestic production peaked in 1970, though a secondary, lower peak showed up in the late 1970s/early 1980s as the Prudhoe Bay complex came online.

The graph below shows total U.S. consumption of petroleum products (in red) and oil production from U.S. fields (in green). Consumption has been growing pretty steadily since 1981 while production has been declining. About 3-1/2 million barrels per day of the gap between these two lines is made up by refinery process gain, natural gas plant liquids, and other liquids. But most of the gap must be met by U.S. imports. Each year that our consumption grows and production declines, imports have to go up. Those rising U.S. oil imports could be the single most important factor determining the price of oil, global trade imbalances, and geopolitics today.


Consumption (in red) represents total U.S. product supplied for crude petroleum and petroleum products, annually, in million barrels per day, from EIA. Production (in green) represents U.S. field production of crude oil from EIA.
oil_prod_cons_apr_10.gif

The next graph shows that although total U.S. production has been falling, U.S. offshore field production (in blue) has been rising, so that offshore oil now represents a third of our total field production. Without offshore oil, the decline in U.S. production would have been even more dramatic. Production from the Gulf of Mexico represents about 3/4 of total U.S. offshore production.


U.S. production (in green) same as in previous graph. U.S. offshore production (in blue) calculated as sum of federal offshore Gulf of Mexico field production, federal offshore California field production, and state offshore field production, from EIA.

http://www.econbrowser.com/archives/2010/05/where_would_we.html

[The_Casual_Observer]

13. Have you noticed that it's out of fashion to be concerned about the

price of oil & how it affects the economy? Nevermind that the last oil spike precipitated the collapse of the housing bubble.
I maintain that expensive oil is the reason why we are now in an endless recession.

[Dawgs]

15. Recovery?

:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

[polichick]

16. Probably because it's due to speculation on Wall Street. nt

[woolldog]

18. sure is....

but that seems like more of a reason to do something about it, not less.

Why let oil traders kill what Obama has worked so hard for the past couple of years? We're just starting to recover.

[polichick]

20. His admin. is chock full of Wall Street insiders - there's a reason for that. nt

[woolldog]

21. I'm not following you

?

[polichick]

22. He's got no problem with Wall Street - they're his guys...

...huge campaign contributors.

[ClarkUSA]

25. Do you have proof of your claims, polichick? Because I have proof that Wall Street detests him.

Here's proof of my claim:

"Wall Street Trader: Pretty Much Everyone Hates Obama"
http://www.businessinsider.com/wall-street-trader-pretty-much-everyone-hates-obama-2010-1

"Obama HATES Wall Street"
http://www.streetinsider.com/Insiders+Blog/Obama+HATES+Wall+Street/4350436.html

Furthermore, Wall Street and the Chamber of Commerce spent billions trying to defeat President Obama's signature push to pass the Wall Street Reform Act, on which only pseudo-principled liberal Sen.Feingold voted nay on out of all the Democrats. They do, indeed, hate Obama. Just ask the Koch Brothers.

[polichick]

27. See INSIDE JOB if you dare...

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=n00009638

http://articles.latimes.com/2008/mar/21/nation/na-wallstdems21

http://www.huffingtonpost.com/joshua-kors/oscar-nominee-charles-fer_b_828735.html

[ClarkUSA]

28. I've seen it before. That's hardly "huge" given the U. of CA beat any Wall Street firm's donation.

Furthermore, a large majority of Obama 2008's campaign contributions came from small donations of < $200, not corporations.

Also, you claimed that "He's got no problem with Wall Street - they're his guys..." which is laughably untrue, given my proof and the Koch Brothers' public attacks on the Obama administration.

His nomination of Elizabeth Warren to the Treasury Department alone is enough to make a mockery of your rhetoric, unless you think she has no problem with Wall Street, too?

:sarcasm:

[polichick]

31. Right, so he packed the admin. with Wall Street for nothing...

Like I said, see INSIDE JOB - and read the interview (third link).

[ClarkUSA]

32. Right, so he appointed Elizabeth Warren to the Treasury Department for nothing...

:sarcasm:

Your conspiracy theory is not only baseless, but it's laughable, given Team Obama saved the auto industry, turned TARP profitable to taxpayers, and saved this country from a prolonged second Great Depression.

[polichick]

33. He didn't appoint Warren until there was a grassroots groundswell of support...

...and then had her answer to both him and Geithner.

[ClarkUSA]

34. Were you privy to Oval Office deliberations? She was likely in the pipeline long before.

Don't forget, she and President Obama are friends from wa-a-ay back:
http://www.csmonitor.com/From-the-news-wires/2010/0916/Elizabeth-Warren-Wall-Street-critic-to-head-new-consumer-protection-bureau

Of course she's going to answer to Geithner and the POTUS. What'd you think? But she insisted on having large latitude in the way she wanted to set up her new bureau and she's not complained at all.

I suppose the Wall Street reform that only Sen. Feingold voted against out of all the Democrats isn't one of President Obama's signature legislative acts that Wall Street and the Chamber of Commerce absolutely did everything in their power to defeat?

Give it up. Anyone who's been keeping up with what's been happening in Washington for the past two years knows that Wall Street is not happy with President Obama.

[phleshdef]

50. Obama and Warren have been friends before the grassroots knew either of them even existed.

They worked together at Harvard. They've known each other for ages.

[Mimosa]

108. Polichick, the facts don't lie.

Thanks for the links. It's all about the money.

[ClarkUSA]

26. Um, he called for other OPEC nations to increase output to cover Libya's loss and they did.

Google it for yourself. Specifically, Saudi Arabia boosted output to cover Libya's contribution.

The rest is up to the futures market, which President Obama doesn't control unilaterally. Contrary to popular expectation, he doesn't not possess a magic wand. :sarcasm:

The Haley Barbour blame game is a bit out-of-place at DU. Are you sure you're at the right forum?

And you have yet to answer the question, "Just what do you want him to do about it?"

[bigwillq]

43. See post #12 (nt)

[woolldog]

30. Oh no,

it's at 102 now. We're screwed. You can kiss the economic recovery goodbye. Get ready for another round of increases in unemployment and shrinking GDP. The Republicans in control of the house and forcing spending cuts will only make things worse.

[BklnDem75]

57. ...

[MiniMe]

35. I think they should revisit the SS COLA because of this

[BlueIris]

36. He's checked out.

I doubt the president is doing much at all these days except keeping up appearances.

[Pirate Smile]

39. So ridiculous.

Freeperish.

[SidDithers]

41. ...

Sid

[SkyDaddy7]

37. Wave Your Magic Wand Obama!! nt.

[Fearless]

38. Because he doesn't control the price of oil?

He could chastise them but it's not like they will listen.

[woolldog]

40. see my post #12 nt

[ClarkUSA]

45. Do you have proof that anything you said will lead to a meaningful drop in prices?

<< Gas tax holiday, release of oil for the strategic oil reserves, announce increases in domestic production >>

A gas tax holiday, as suggested by McCain and Hillary in 2008, was debunked as largely a PR gimmick by the Obama campaign and credible economists. It flopped due to a chorus of media derision. Republicans love the idea, though.

Increases in domestic production would take how long? how much an increase offset Libyan losses? Show proof of your claims. Dick Cheney, Haley Barbour and Sarah Palin would love your idea, though.

Release of strategic oil reserves? Oil prices which has remained relatively stable since the Libyan crisis began, so why would President Obama do that?

[southernyankeebelle]

44. What do you want him to do?

[ClarkUSA]

46. He'll tell you to see Reply #12 without giving any proof that any of his "advice" would work.

Increase in domestic oil production would sure please Haley Barbour and Sarah ""Drill, Baby, Drill!" Palin , though. And McCain would love the gas tax holiday idea, since he and Hillary offered it as a PR gimmick in 2008 which Candidate Obama soon debunked.

[bigwillq]

47. Can you please share your suggestions?

I am open to any and all solutions that can bring relief.

[ClarkUSA]

49. I'm not the one complaining. Also, see Reply #26 (link provided ->)

Link: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=433&topic_id=621128&mesg_id=621168

[JuniperLea]

51. You want him to jawbone the Saudis?

I see you've consulted a psychic recently! You seem to know exactly what Obama does and does not take seriously!

"Good morning! I say what a joy it is to look ahead and show you the signs of your future. So much happiness is in store for you the most brilliantly lighted stars are put to shame by the brightness of your light! Oh, happiness what an illusive thing you are, but thank GOD you were born beneath this star!

Drop another coin in the slot and I will tell you more!"

[Rebubula]

52. $100 Oil???

What about the skyrocketing cost of pot and hookers?

Why do people still die of cancer and AIDS?

How can Obama sleep at night KNOWING that people are sad?




He is not God (not that there is one, but you get my point).

[boppers]

60. Can we release our strategic pot reserves?

Maybe subsidize the market?

[Shiver]

68. You win the thread.

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

[Ikonoklast]

100. Hell with that, I want a goverment subsidized hooker!

Wait a minute, I just thought of something, they might send me John Boehner.


Eeewwwwwwww.

[vaberella]

54. Can you tell me what you think he can do, that he hasn't done?!

Then maybe I can respond better.

[rpannier]

70. Invade Libya

Be like Caeser
Invade the country
Kill almost everyone there and come back and subdue the Senate using the force of a grateful public and the backing of the military

No wait!

I'm sorry. That was what some crackpot at the Wall Street Journal wanted Bush to do in Iraq

Never mind

[bhikkhu]

56. I like Spain's approach:

lower the speed limit and subsidize alternatives like rail. I'd probably suggest raising the gas tax too - all of which are oriented to reducing consumption and dependence, the only real approach to the problem. That would help, but of course it would go over like a lead balloon.

Things like gas tax holidays and releasing oil from the strategic reserve are just expensive gimmicks that get people to keep using too much of a fuel they really can't afford.
If the government bought everyone a tank of gas that would have about the same effect - we could feel good and pretend everything is fine for a little while longer. In my own household we cut down to one car and I do most of my commuting and errands by bicycle for three years now, since the last "oil shock". Its amazing how well you can live and how good it can feel when you don't have all those vehicle expenses to pay, and get a little exercise every day.

[butterfly77]

58. What do you want....

another invasion or invasions,what are your suggestions to stop it,we don't know what is going on in the background..

[erodriguez]

59. There is nothing he can do here. Speculators smell a profit.

[quakerboy]

64. so there is nothing that could be done

to prevent or limit speculation?

[erodriguez]

72. Well I don't think there are many legal means for him to prevent speculation

Even if he were able to change the laws in the US, Oil is a global market. I think the only thing he could do is say something to the fact that speculation is a factor in rising oil prices.

[Arkana]

61. What do you want him to do? Put King Abdullah in a headlock?

[Travelman]

79. Noogies. Lots of noogies.

And maybe a wet willie.

[golfguru]

65. He should raise it to $200 oil by stopping

all drilling in the Gulf & Alaska. A European style gasoline price
of $9 per gallon will go a long way towards slowing global warming.

[jzodda]

78. What a terrible idea

The economy is bad enough-

Gas that high would go a long way towards pushing us into the next great depression.

It would also spell the end of his presidency and insure Repubs control of all branches of gov after 2012

[golfguru]

84. But we will have cleaner air to breathe

Health is more important than wealth.
$9-10 per gallon will force many of us to ride bi-cycles and further
improve our heart-lungs and physical conditioning.

[opihimoimoi]

71. Don't Blame him,,,, BLAME THE GOPers, its their shit that is on the table

Their stewardship at the National HELM has been FUBAR

Their ineptness is astounding

[woolldog]

74. OK

So all of you are ok with a small group of oil traders killing the economic recovery and the Republicans taking the Presidency as a result?

Because that's what will happen if oil doesn't get back under control.

[louslobbs]

85. So if oil doesn't get back under control

All of the voters, like the people in Wisconsin, who know that the Corporate bought Republicons and their ilk are trying to kill unions and are finally waking up to what the RepubliCons, Kochs and others are doing to this country, will vote in a Republicon President if oil doesn't get back in control? They are all going to put the nail in their own coffins and vote in some lunatic who will assure them that Union busting, vote rigging, tax cuts for the rich, potential war with Iran, deregulating god knows what else, and putting in place other job killing policies are guaranteed? Hmmmm, maybe your right, after all, the recent election showed us that people will vote against their own interests by electing absolute Sociopaths and Psychotics to positions of power even though they cheat, lie, steal and promote hate. You just might have a point. Hopefully, you are wrong and the rude awakening in Wisconsin will be a turning point. However, a President is not a panacea for all that is going wrong or happening here at home or globally. A President does have the bully pulpit, and can address an issue at any time, with the needed press coverage (such as it is) to send a message to We The People and the Republicons. It's his choice.
Lou

[WI_DEM]

75. So what should he do about it?

[dionysus]

76. he's responsible for the cost of a barrel of oil now? jebus h christ

:rofl:

[jzodda]

77. What can he do?

I would say do away with gax taxes and/or even impose price controls

but....he would never be able to get something like that through Congress.

[ClarkUSA]

80. His magic wand got lost at the dry cleaners.

Total bummer for those who expect to him to hurriedly fix all the ills of the world, eh?

:sarcasm:

[Zoeisright]

81. What exactly is he supposed to do about it?

You're being unreasonable.

[zalinda]

82. What a question

I can't stand Obama, and even I know he can't do anything about the price of oil. Do you honestly think that this red herring is going to bring out the 'Obama haters' to agree with you?

Until oil is taken out of the speculation market, there is absolutely nothing the public or any politician can do about it. Now cutting the subsidies for public transportation, that politicians COULD do something about, but there is no backbone for it, it's not that glamorous.

zalinda

[WolfoftheWild]

83. why don't I take this OP seriously? I wonder.

Obama's going to be re-elected despite your naysaying.

[Butch350]

86. Obama ain't got a damn thing to do with it - and he shouldn't..

it would be more effective if YOU did something about it and park that gas guzzler of yous!

[opihimoimoi]

87. LOL......

[DuaneBidoux]

88. The only thing he really can effectively do is long term...but he hasn't really tried that.

He has had some random initiatives for renewable energy as a path to energy independence but they have been a fraction of the strategic efforts the country needs.

He could have pushed much harder to take our dependence off of oil (and it doesn't matter if it is "domestic" or "international" since oil is a fungible market).

He had a chance to set a real policy goal of windturbines and solar and biofuels etc., set a timetable and get the funding and the politics of it were perfect in 08. But he didn't do it.

He has another opportunity now to use this crisis in Libya and the uncomfortable and obvious fact that we are hostagest to push an initiative. Anybody wanna' bet if anything will happen?

[woolldog]

89. Postscript

White House Considers Tapping Oil Reserves
March 6, 2011

WASHINGTON (Reuters) – White House Chief of Staff William Daley said on Sunday the Obama administration was considering tapping into the U.S. strategic oil reserve as a way to help ease soaring oil prices.

Speaking on NBC television's "Meet the Press," Daley said: "We are looking at the options. The issue of the reserves is one we are considering. It is something that only is done -- and has been done -- in very rare occasions. There's a bunch of factors that have to be looked at. And it is just not the price."

"All matters have to be on the table when you see the difficulty coming out of this economic crisis we're in and the fragility," Daley added.

Congress has pressured the Obama administration to look to the emergency oil supply to ease consumers' fears over rising gasoline prices, which are threatening again to top $4 per gallon at U.S. gas stations.

Higher oil prices could undermine the fragile U.S. economic recovery and politically damage President Barack Obama as he moves toward his 2012 re-election bid. <...>

http://news.yahoo.com/s/nm/20110306/pl_nm/us_usa_energy_reserves

DEMOCRATS BACK DRAWDOWN

There has been support among Senate Democrats for tapping America's emergency oil supply to cool gasoline prices.

Senator Jay Rockefeller urged Obama on Thursday to allow a "limited draw-down" from the oil reserves, to "protect our national security by preventing or reducing the adverse impact of an oil shortage.

But Republican Senator Lamar Alexander, speaking on CNN's "State of the Union" on Sunday, said he would not support the oil reserve drawdown. <...>

It was last done in 2005 following Hurricane Katrina, helping to drive oil prices down by about 9 percent.

British finance minister George Osborne on Friday signaled he would cut the country's fuel tax to counter soaring oil prices. A one penny-per-liter rise in the fuel duty planned by the previous Labour government was due to take effect in April.

http://news.yahoo.com/s/nm/20110306/pl_nm/us_usa_energy_reserves

http://www.reuters.com/article/2011/03/03/us-usa-oil-rockefeller-idUSTRE7227OU20110303

[mkultra]

101. yup, unneccesary outrage

[harun]

90. QE is what caused it. As American dollars go down in value, oil costs more.

Pretty simple.

[Spider Jerusalem]

91. Short answer: because he can't do anything about it.

The US can't do anything about it. Oil is a commodity traded on a global market. The US imports 11 million barrels a day, over half of US consumption. And there is market competition from developed-world economies like the EU and Japan for the oil that's imported, to say nothing of developing countries like China and India.

Also, the oil price you should be looking at is Brent crude oil (Friday close: US$115.97/bbl). West Texas Intermediate is not a global benchmark; Brent is. Brent is a better barometer for what's going on in the global oil futures market.

[woolldog]

92. wrong

see post #89

As for the difference between Brent and nymex and wti, the media usually cites nymex or wti as the price of oil.

Light sweet crude oil or WTI is what we use in the US for gasoline, so the price of wti and nymex (which basically tracks WTI) is more relevant for us in the US than Brent. While Brent is more relevant for Europeans. That's my dim understanding of the matter.

[Spider Jerusalem]

93. WTI isn't the only light, sweet crude

Brent is also a light, sweet crude oil. So is Libyan crude. Light means "having an API specific gravity of 28-42". "sweet" means "0.5% or less sulfur"...and when the US sources over 50% of its demand from imports then sorry, global pricing matters.

[woolldog]

94. The standard in the financial press

Is to use the nymex contract, not Brent, as the benchmark for the price of oil. I assume they do that because that price is the one most relevat to us. If that bothers you, take it up with the wall st journal and cnbc.

In any case the administration is considering tapping into our reserves, to lower the price, which is all I really care about. Good day to you sir.

[Spider Jerusalem]

95. Except it won't do it, not by much and not for long

also:

West Texas Intermediate oil grade 'broken benchmark,' Credit Suisse says

Bloomberg News · Friday, Feb. 18, 2011

West Texas Intermediate oil, the grade traded on the New York Mercantile Exchange, is a "broken benchmark," as pipeline bottlenecks make it unrepresentative of global prices, according to Credit Suisse AG. Increasing Canadian and U.S. production has swollen stockpiles at Cushing, Okla., the delivery point for New York futures, and depressed prices in relation to Brent oil on London's ICE Futures Europe exchange, analysts Edward Morse and Joachim Azria said on Thursday in a report. The long-term solution of building pipelines from Canada's oil fields to the Pacific coast, reversing the direction of other links or building a line to the Gulf of Mexico don't "seem feasible in the near term," the analysts said. Because of the glut in the midcontinent, the differential between WTI and Brent, or similar crude grades on the U.S. Gulf Coast, such as Louisiana Light Sweet, should stabilize at $7 a barrel, the analysts said.
Source

Is West Texas Intermediate Still the Global Benchmark for Oil Prices?

By Jeff Rubin

02/02/2011

Just which price is the world benchmark for oil these days?

If you ask the folks over at the New York Mercantile Exchange (NYMEX), the answer is West Texas Intermediate (WTI), which is priced at the storage tanks in Cushing Oklahoma, where all expiring NYMEX oil contracts must be settled either through the purchase or sale of physical crude.

But West Texas Intermediate is trading at an all-time discount to other grades of oil. Last week, it was trading at a record $12 per barrel discount to competing European Brent Crude. Until the Egyptian uprising captured the market’s attention, the two prices were actually heading in opposite directions with WTI sinking to a two-month low of $85 per barrel, while Brent was within a dollar of triple digits.

The divergence is no mystery. Unlike Brent crude from the North Sea, which can be shipped to refineries pretty much anywhere in the world, oil in storage at Cushing can only be absorbed by refineries in the U.S. Midwest. With nowhere else to go, WTI is not even an accurate barometer for oil prices in the U.S. market, let alone the global market. For example, the price spread between it and Light Louisiana Sweet on the Gulf coast is as big as its spread with Brent. And by all accounts, the spread between WTI and Brent is going to become even bigger, rendering the former increasingly irrelevant as a global pricing benchmark.
More...

[woolldog]

96. Thank you for those articles.

I will read them.

Many on the democratic side of the aisle, including those with a lot of experience in finance like Daley and Rockafeller seem to think it'll make a difference. Per the article in post #89 in this thread, the last time we tapped the reserves it dropped the price of oil 9%.

[woolldog]

97. Also

I don't mean to seem petty, but those articles do affirm that WTI is the current benchmark for the price of oil.

[Spider Jerusalem]

99. Well no, actually, they don't?

They affirm that it's quoted in the US as a benchmark but also say it's not actually a benchmark for prices on international markets or even in the US (see: spread between WTI and Louisiana crude oil).

[woolldog]

103. The title of your second article is:

"Is WTI still the global benchmark for oil prices"

and then argues why it shouldn't be. That suggests to me that it is.

In any case can we agree that Obama needs to stop talking and start doing something?

[Ameriva]

105. WHERE IS OBAMA ON NATURAL GAS

we all cook with it
it is clean enough for kitchen it is clean enough for exhaust
it is like $1/ a gallon
it is domestic so no more propping up dictors and no more blood for oil

why not use usa natural gas??

why do we have to have $50,000 electric cars that only hollywood elite liberals can own?

why can't we have a natural gas car like argentina and brazil that costs $10,000 - you can fill up for $10 - and is 100% GREEN??????

[Liberal_Stalwart71]

106. In your infinite wisdom, how do you *know* that he's not doing anything?

Did he tell you in his sleep?

[Thrill]

107. The same as when Bush was President

The President really can't do much. Except tap the reserves. The country is owned by Oil.