Too Little, Too Late & Too DesperateAll in all, this oil intervention of the Obama Administration came too little, too late. To put it in perspective, the IEA estimate global oil demand for 2011 is 89.3 million b/d, so the 60 million is not significant enough to sway the oil market supply and demand equation.Furthermore, due to the poor timing, the damage to the global economy has already done impacting consumer and corporation spending pattern, whereas the cost inflation has already built into the goods and services supply chain, and manifesting in the latest U.S. consumer inflation numbers.And frankly, if the U.S. and other IEA member countries have to resort to SPR as an economic stimulus, it is just a testament to the colossal failure of (1) global monetary and fiscal policies, (2) the global synchronized quantitative easing, and the dire desperation of politicians for re-election.U.S. Fed Chairman Ben Bernanke has basically admitted the failure of QE2 to revive the economy. This SPR release acting as QE 2.5 is another waste of resource adding to theunmitigated disaster of the U.S. quantitative easing programs
Monday, June 27, 2011
from Quantitative Easing to Quantitative Greasing : SPR Oil Release Could Cost U.S. Taxpayers $1.5 Billion
More on the Oil situation — from Quantitative Easing to
Greasing, anything goes in the quest to get some traction from the economy...
Poorly-Timed SPR Oil Release Could Cost U.S. Taxpayers $1.5 Billion