Thursday, June 23, 2011

Cash for clunkers- the petroleum version

So, the IEA is going to let 60 million barrels of oil go from their(our) emergency reserves.
This in spite of Saudi making plans to pump more of their oil to make up the shortfall of expected use.

So what were doing is dumping a crapload a bunch of oil into the market to lower the cost right before November. I didn't think 60 million barrels would have that much affect on the markets because that's probably not even a days worth of oil consumption in Europe. I'm sure we use about that much here.

So, back to the title.
Urkel decided to boost the sales of GovtMotors by handing out cash when someone traded in their old car for one of his. They then destroyed the cars.

Now there are less used cars on the road, we're never going to get the Gov out of GM- and used cars are almost as expensive as new ones- I know because Thing-1 needed another vehicle.

Now the IEA is dumping oil and leaning on people to drop their oil futures prices.
oil will be less expensive for a while, then the IEA is going to start buying oil again to make up for the dump.

What do you think will happen with oil prices then?

.....With a new Republican Congress and maybe president, too.


  1. I giggled at the skizzy price action today. The Obama Oil Bonus represents a little over three days U.S. oil consumption.

  2. Yeh, I didn't think it was a really big contribution. But it still seams to be blown waaaay out of proportion to what it is.