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soonercruiser
6/24/2011, 07:37 PM
Of all the times that the country could have released some of the nation's strategic oil resereves, and didn't....WHY NOW??

Gas prices up the street have gone down over 40 cents in the last couple of weeks. This has happen even with the continued hostilities in Libya.
So, if the speculators thought that there was going to be a problem with the world-wide oil supply, wouldn't it make sense that they would be driving the prices up?

Although the release would be a record for the U.S., the total releases worldwide are only enough to account for 16 hours worth of the world daily supply.

The title of the Daily OKlahoma article was actually ....
RECORD OIL RESERVE RELEASE ANNOUNCED BY U.S., OTHERS



Oklahoma-based Domestic Energy Producers Alliance is critical of decision to open oil reserve
The head of the Domestic Energy Producers Alliance panned the Obama administration's plan to sell 30 million barrels of oil from the nation's emergency supply.

Darryl Smette, Devon Energy Corp.'s executive vice president of marketing and midstream, said he doesn't expect the move to affect prices, despite a slight dip Thursday.

“Considering worldwide oil demand is 88 million barrels per day, we do not believe 60 million barrels from the strategic reserve will make a material difference in the market,” Smette said. “The market reaction we saw today was driven by optics and emotion.
http://newsok.com/oklahoma-based-domestic-energy-producers-alliance-is-critical-of-decision-to-open-oil-reserve/article/3579849?custom_click=pod_headline_financial-news

pphilfran
6/24/2011, 07:56 PM
A political ploy...they are releasing a day and a half of yearly usage...

Less than one half of one percent of our annual oil consumption

CrimsonKel
6/24/2011, 08:03 PM
It seems pretty dumb.

soonercruiser
6/24/2011, 08:18 PM
A political ploy...they are releasing a day and a half of yearly usage...

Less than one half of one percent of our annual oil consumption

Article actually says that the total release is 60 million barrels; when the world output is 88 million barrels a day! (I have seen those numbers in print and on the web)
That was the 16 hours reference that I clipped in the article.

REDREX
6/24/2011, 08:22 PM
Sell it all----The Gov't would make about $60 per BBl

StoopTroup
6/24/2011, 08:22 PM
Isn't Devon building a huge building in OKC?

soonercruiser
6/24/2011, 08:29 PM
Wonder if they could just fill it with oil?
:rolleyes:

olevetonahill
6/24/2011, 08:54 PM
Article actually says that the total release is 60 million barrels; when the world output is 88 million barrels a day! (I have seen those numbers in print and on the web)
That was the 16 hours reference that I clipped in the article.

The US is only releasing 30 mil. the other 30 is from other country's.;)

pphilfran
6/24/2011, 08:56 PM
Article actually says that the total release is 60 million barrels; when the world output is 88 million barrels a day! (I have seen those numbers in print and on the web)
That was the 16 hours reference that I clipped in the article.

I am sorry...my number was US usage....not exactly a day and a half but close enough...

tcrb
6/24/2011, 08:57 PM
Campaign strategy.

pphilfran
6/24/2011, 08:57 PM
The US is only releasing 30 mil. the other 30 is from other country's.;)

That is correct...it was an international initiative...

pphilfran
6/24/2011, 09:00 PM
Article actually says that the total release is 60 million barrels; when the world output is 88 million barrels a day! (I have seen those numbers in print and on the web)
That was the 16 hours reference that I clipped in the article.

Another apology...I didn't read your posting...I had already seen it previously so I didn't read much more the the heading...

soonercruiser
6/24/2011, 10:06 PM
Another apology...I didn't read your posting...I had already seen it previously so I didn't read much more the the heading...

The anaylsis that I have read seem to think we are doing it for Europe!??
:O

GKeeper316
6/25/2011, 12:15 AM
cuz if they leave it in the fridge too long, it'll get all moldy and gross and then we'll just have to throw it away... and we all know how much we hate wasting energy.

Breadburner
6/25/2011, 07:44 AM
What ever you do...Dont drill for it here......

cccasooner2
6/25/2011, 09:36 AM
cuz if they leave it in the fridge too long, it'll get all moldy and gross and then we'll just have to throw it away... and we all know how much we hate wasting energy.

Not to mention that waste of energy opening and closing the door to make sure the light and on/off switch are working.

StoopTroup
6/25/2011, 09:57 AM
Want ever happens...i hope we get full release

pphilfran
6/25/2011, 10:59 AM
The anaylsis that I have read seem to think we are doing it for Europe!??
:O

After thinking about it everybody is going to benefit...

The market was already on a downward trend....lower worldwide consumption had caused the traders to change direction...we had another 25 to 50 cents of downward movement in gas prices built into the system so we were heading to 3.25 - 3.50...the more I think about it the worldwide crude release was well timed...politically and economically....

Emotion drives the market as much as actually production and demand....slap a little more crude into a system that is already thinking that prices are too high and you might get a bigger drop...a downward spike...that frees up a ton of money....right now, not six months to a year to work its way through the system....a good stimulus that won't cost too much...

And to have other countries participate in the release even magnifies the benefit...

Europe is in far worse shape than the US....Greece is an albatross around the EU's neck....they need the money savings...

Mid and long term it won't make much difference....short term it could actually be a smart move...did I really say that?

pphilfran
6/25/2011, 11:36 AM
I don't always agree with you, but you generally raise the level of discourse.

As it happens, I agree with you on this. It's similar to a big short on a downward trending market.

Half the time I find that I don't agree with myself...

tator
6/25/2011, 01:27 PM
This is a good thing, no reason to just blanket complain about everything that happens.

soonercruiser
6/25/2011, 02:01 PM
After thinking about it everybody is going to benefit...

The market was already on a downward trend....lower worldwide consumption had caused the traders to change direction...we had another 25 to 50 cents of downward movement in gas prices built into the system so we were heading to 3.25 - 3.50...the more I think about it the worldwide crude release was well timed...politically and economically....

Emotion drives the market as much as actually production and demand....slap a little more crude into a system that is already thinking that prices are too high and you might get a bigger drop...a downward spike...that frees up a ton of money....right now, not six months to a year to work its way through the system....a good stimulus that won't cost too much...

And to have other countries participate in the release even magnifies the benefit...

Europe is in far worse shape than the US....Greece is an albatross around the EU's neck....they need the money savings...

Mid and long term it won't make much difference....short term it could actually be a smart move...did I really say that?

Oh! And I thought that it was a "Strategic Oli Reserve". :rolleyes:
Obama's personal political strategy qualifies, I guess.

jkm, the stolen pifwafwi
6/25/2011, 04:56 PM
So what did we do with the 2.7 Billion dollars we made off the Sale?

pphilfran
6/25/2011, 05:14 PM
So what did we do with the 2.7 Billion dollars we made off the Sale?

Save it and use it to refill the reserve in the future...

pphilfran
6/25/2011, 05:17 PM
Oh! And I thought that it was a "Strategic Oli Reserve". :rolleyes:
Obama's personal political strategy qualifies, I guess.

Yes it is a strategic reserve...and with the economy teetering on a double dip it could be considered a strategic move to keep the economy from tanking...

The fed is out of bullets and this is about as good a silver bullet as they have left in any chamber...

If they had done this with prices going up it would have had little effect...this is the best shot they got...

TitoMorelli
6/25/2011, 06:11 PM
http://i965.photobucket.com/albums/ae140/sigcarlfred/oilreserves.jpg

pphilfran
6/25/2011, 06:34 PM
It damn near is an emergency...

The red ink in flowing...the economy seems to be stalling...all they have really been able to do is stop job loss...sputtering along at a pace that just keeps up with new entry level workers....

It isn't really going to cost anything...other than replacement crude...

Makes those future traders have to think twice about bidding up...add some mo to an already declining market...

I am sure I am in the minority in my thinking...and I have been wrong before...

I think it is a damn good move...low risk and cost...possible a very good payout...hit the pocketbook tomorrow...

Two thumbs up!

REDREX
6/25/2011, 06:44 PM
The funny thing is most traders I know were playing the market from the shortside----They were happy with the move

pphilfran
6/25/2011, 06:55 PM
The funny thing is most traders I know were playing the market from the shortside----They were happy with the move

I am sure they are....

Do I make any sense?

REDREX
6/25/2011, 07:22 PM
I am sure they are....

Do I make any sense?---If people think they "HURT" speculators with this move they are wrong----They play it from both sides of the market----As far as the price it may have helped it find a level a little quicker.----Think about it 30 Million BBls runs the country for 36 hours hardly a game changer

pphilfran
6/25/2011, 07:26 PM
---If people think they "HURT" speculators with this move they are wrong----They play it from both sides of the market----As far as the price it may have helped it find a level a little quicker.----Think about it 30M BBls runs the country for 36 hours hardly a game changer

I know it ain't much...a stretch for sure...but hell, it is basically free and could give a little extra punch...

The traders will make money, half of em...and Uncle Sam will get his cut in taxes...


What the hell, empty the thing and we could drive prices so far down we could bk the evil oil companies...:pop:

REDREX
6/25/2011, 07:28 PM
I know it ain't much...a stretch for sure...but hell, it is basically free and could give a little extra punch...

The traders will make money, half of em...and Uncle Sam will get his cut in taxes...


What the hell, empty the thing and we could drive prices so far down we could bk the evil oil companies...:pop:---"EVIL OIL COMPANIES" ?---You sound like Profit or God help us---Gaffer

pphilfran
6/25/2011, 07:43 PM
---"EVIL OIL COMPANIES" ?---You sound like Profit or God help us---Gaffer

Remember Syb?

He was posting on another board a month or two ago...he had already left the place and I didn't get a chance to give him some hell......

See...it is a win/win/win/win/win...empty the sum beech...the speculators will get rich...fuel prices will drop like a rock...we can refill it at rock bottom prices...the evil oil companies get killed and lose money while the left cheers wildly....

It is brilliant I tell ya....BRILLIANT!

REDREX
6/25/2011, 08:01 PM
Remember Syb?

He was posting on another board a month or two ago...he had already left the place and I didn't get a chance to give him some hell......

See...it is a win/win/win/win/win...empty the sum beech...the speculators will get rich...fuel prices will drop like a rock...we can refill it at rock bottom prices...the evil oil companies get killed and lose money while the left cheers wildly....

It is brilliant I tell ya....BRILLIANT!---Custer also had a plan

soonercruiser
6/25/2011, 09:12 PM
---If people think they "HURT" speculators with this move they are wrong----They play it from both sides of the market----As far as the price it may have helped it find a level a little quicker.----Think about it 30 Million BBls runs the country for 36 hours hardly a game changer

Rex,
You pretty much sum up what I think. No "game changer".
:O

soonercruiser
6/25/2011, 09:14 PM
---Custer also had a plan

And, ended up in an Arrow shirt!
:D

soonercruiser
6/26/2011, 02:34 PM
From Sunday's Daily Okahoman.

http://members.cox.net/franklipsinic/Obama/obama%20polls.jpg

TitoMorelli
6/26/2011, 09:00 PM
I am sure they are....

Do I make any sense?

You make plenty of sense. I just liked the cartoon, that's all.


Got me some J & C's smoked sausage in the fridge. And a tee shirt from there - smells like hickory smoke.

REDREX
6/26/2011, 09:32 PM
I had dinner with a Gulf Coast refiner tonight---They said the Gov't is trying to sell the SPR crude at $3 per bbl over the market----What a joke

CrimsonCream
6/27/2011, 02:34 PM
Of all the times that the country could have released some of the nation's strategic oil resereves, and didn't....WHY NOW??

Pandering for votes again. Just a scumbag.

Why not a national energy policy? Resume Gulf drilling to where it was? Open up the Alaskan oilfields? Etc.

Dan Thompson
6/27/2011, 07:47 PM
I was thinking, What the H*** is that supose to do?

Also, none of it is coming from the reserves near Taft/Bakersfield Calif.

REDREX
6/29/2011, 10:35 AM
Crude moving back up where it was before the SPR release---

pphilfran
6/29/2011, 10:38 AM
What the hell....there goes my theory....

Bourbon St Sooner
6/29/2011, 10:45 AM
What the hell....there goes my theory....

I think the move of the price of oil had more to do with the dollar strengthening last week and maybe some overreaction to the SPR release. The dollar has weakened the past couple of days and oil is back up.

The SPR should only be released if refineries are short of feedstock because of a supply disruption. That's the only time it makes sense to release those reserves. To me, releasing those reserves when such a situation doesn't exists decreases your stockpiles to respond to a true supply shock and should be a more bullish indicator for oil prices.

pphilfran
6/29/2011, 10:48 AM
I think the move of the price of oil had more to do with the dollar strengthening last week and maybe some overreaction to the SPR release. The dollar has weakened the past couple of days and oil is back up.

The SPR should only be released if refineries are short of feedstock because of a supply disruption. That's the only time it makes sense to release those reserves. To me, releasing those reserves when such a situation doesn't exists decreases your stockpiles to respond to a true supply shock and should be a more bullish indicator for oil prices.

I agree with ya...earlier I was just thinking out of the box and got a little irrational in my exuberance....

okie52
6/29/2011, 10:51 AM
Crude moving back up where it was before the SPR release---

Yeah, but Obama taught them a lesson.

The Profit
6/29/2011, 10:52 AM
I have no problem with SPR being released to control the speculators. Personally, I believe they should be rounded up and shot. At the very least, there should be laws written to control them. They are a scourge to society, and deserve to rot in hell.

REDREX
6/29/2011, 10:55 AM
I have no problem with SPR being released to control the speculators. Personally, I believe they should be rounded up and shot. At the very least, there should be laws written to control them. They are a scourge to society, and deserve to rot in hell.---Most of the speculators were playing it short--Lowering the price---You want to shoot them too?

okie52
6/29/2011, 10:56 AM
I have no problem with SPR being released to control the speculators. Personally, I believe they should be rounded up and shot. At the very least, there should be laws written to control them. They are a scourge to society, and deserve to rot in hell.

But it didn't control them, did it? Or, at the very least, it didn't have the desired effect of reducing crude prices.

Obama originally said this was to offset the Libyan drop in oil production. The irony was that there wouldn't be any drop in Libyan oil production if Obama had kept our azz out of Libya.

Bourbon St Sooner
6/29/2011, 10:59 AM
I have no problem with SPR being released to control the speculators. Personally, I believe they should be rounded up and shot. At the very least, there should be laws written to control them. They are a scourge to society, and deserve to rot in hell.

Speculation works both ways. Who do you think caused that 5% drop last week?

SPR should only be used to deal with true short term supply shocks. Doing anything else sets you up for real shortages and is long term bullish for oil prices.

The Profit
6/29/2011, 11:01 AM
But it didn't control them, did it? Or, at the very least, it didn't have the desired effect of reducing crude prices.

Obama originally said this was to offset the Libyan drop in oil production. The irony was that there wouldn't be any drop in Libyan oil production if Obama had kept our azz out of Libya.



We are not in Libya. The move to oust Qaddafi was correct. Both Russia and China have joined us now in calling for his removal, which means that all 3 nations thought he was going to be ousted anyway, and wanted to be on the side of the opposition. Qaddafi will soon be gone without a single American losing his/her life, and the world will be a better place.

This, of course, doesn't take care of the problem with speculators. They will just find another reason to artificially inflate the price of oil. Again, they should be imprisoned or shot. I really have no preference.

okie52
6/29/2011, 11:04 AM
We are not in Libya. The move to oust Qaddafi was correct. Both Russia and China have joined us now in calling for his removal, which means that all 3 nations thought he was going to be ousted anyway, and wanted to be on the side of the opposition. Qaddafi will soon be gone without a single American losing his/her life, and the world will be a better place.

This, of course, doesn't take care of the problem with speculators. They will just find another reason to artificially inflate the price of oil. Again, they should be imprisoned or shot. I really have no preference.

We sure are killing a lof of Libyans for not being "there". Again, we're not there and Libyan oil production would be virtually unchanged.

Like Red said, there are a lot of investors that are going short on oil...you only going to shoot the ones going long?

REDREX
6/29/2011, 11:05 AM
We are not in Libya. The move to oust Qaddafi was correct. Both Russia and China have joined us now in calling for his removal, which means that all 3 nations thought he was going to be ousted anyway, and wanted to be on the side of the opposition. Qaddafi will soon be gone without a single American losing his/her life, and the world will be a better place.

This, of course, doesn't take care of the problem with speculators. They will just find another reason to artificially inflate the price of oil. Again, they should be imprisoned or shot. I really have no preference.---You also have no real clue how a market works

The Profit
6/29/2011, 11:08 AM
---You also have no real clue how a market works



I'm guessing that I am more heavily invested in the market than you are. You assertion would be incorrect. When speculators are compensated by the oil industry that is producing the product upon which they are speculating, there is a real problem. Someone should be going to prison.

pphilfran
6/29/2011, 11:12 AM
I'm guessing that I am more heavily invested in the market than you are. You assertion would be incorrect. When speculators are compensated by the oil industry that is producing the product upon which they are speculating, there is a real problem. Someone should be going to prison.

Uh oh...Profit is All In...

REDREX
6/29/2011, 11:14 AM
I'm guessing that I am more heavily invested in the market than you are. You assertion would be incorrect. When speculators are compensated by the oil industry that is producing the product upon which they are speculating, there is a real problem. Someone should be going to prison.
---I really doubt that you are----But it you are heavily invested that makes you a "Seculator" and you should be shot-----And please show me were speculators are compensated by oil companies---that is a new one

okie52
6/29/2011, 11:26 AM
---I really doubt that you are----But it you are heavily invested that makes you a "Seculator" and you should be shot-----And please show me were speculators are compensated by oil companies---that is a new one

It's those thievin oil speculators that are the problem.

sappstuf
6/29/2011, 11:31 AM
I'm down in Gulf Shores AL for vacation... Nice to see those offshore oil wells.... Wish I could see about twice as many.

okie52
6/29/2011, 11:37 AM
I'm down in Gulf Shores AL for vacation... Nice to see those offshore oil wells.... Wish I could see about twice as many.

A thing of beauty.

Mississippi Sooner
6/29/2011, 11:39 AM
I'm down in Gulf Shores AL for vacation... Nice to see those offshore oil wells.... Wish I could see about twice as many.

Fun fact: Gulf Shores is the home of the world's tiniest Hooters.

pphilfran
6/29/2011, 11:47 AM
Fun fact: Gulf Shores is the home of the world's tiniest Hooters.

Smallest hooters? Or the business itself?

Mississippi Sooner
6/29/2011, 11:48 AM
Smallest hooters? Or the business itself?

They used to sell t-shirts at that Hooters that said that. It was a really tiny place. Sadly, I haven't been there since they rebuilt after Hurricane Ivan, so I don't know if it's still the smallest.

Bourbon St Sooner
6/29/2011, 11:50 AM
I'm down in Gulf Shores AL for vacation... Nice to see those offshore oil wells.... Wish I could see about twice as many.

You have to go to the bay side to see oil platforms from Gulf Shores. Now Grand Isle, that's a view.

REDREX
7/5/2011, 08:57 AM
Crude is back above the price before the SPR release----Wonder what Barack will do now?

XingTheRubicon
7/5/2011, 09:04 AM
Crude is back above the price before the SPR release----Wonder what Barack will do now?




Quoted by: the complete and utter moron, profit
obama should just start shooting the speculators
.

sappstuf
7/5/2011, 09:25 AM
Crude is back above the price before the SPR release----Wonder what Barack will do now?

Blame corporate jet owners for flying around the country burning up fuel??

sappstuf
7/5/2011, 09:29 AM
You have to go to the bay side to see oil platforms from Gulf Shores. Now Grand Isle, that's a view.

From Fort Morgan we could see a lot more. Like I originally said, wish I could have seen about twice as many.

We did find some old oil clumped up and washed on shore. I don't know if it was still from the leak or just the natural leakage that comes from the Gulf. Either way, it made us limit our time in the ocean to 6-8 hours a day.... ;)

sappstuf
7/6/2011, 10:15 AM
It damn near is an emergency...

The red ink in flowing...the economy seems to be stalling...all they have really been able to do is stop job loss...sputtering along at a pace that just keeps up with new entry level workers....

It isn't really going to cost anything...other than replacement crude...

Makes those future traders have to think twice about bidding up...add some mo to an already declining market...
I am sure I am in the minority in my thinking...and I have been wrong before...

I think it is a damn good move...low risk and cost...possible a very good payout...hit the pocketbook tomorrow...

Two thumbs up!

Phil from what I am reading, Obama sold the oil at $10 below market price. Obama just subsidized the speculators at a cost of $300 million to the American public.

Something tells me you won't see that in a campaign ad next year. At least not from Obama....

pphilfran
7/6/2011, 10:24 AM
Phil from what I am reading, Obama sold the oil at $10 below market price. Obama just subsidized the speculators at a cost of $300 million to the American public.

Something tells me you won't see that in a campaign ad next year. At least not from Obama....

I haven't seen that...why would they drop the price?

sappstuf
7/6/2011, 10:34 AM
I haven't seen that...why would they drop the price?

I found something that says $5 a barrel, but it is complicated.. I think we need an expert to weigh in .


However, deciphering the SPR purchase price is like playing the ‘Price is Right’ for oil nerds. The SPR report lists prices paid, but they are not quite accurate and must be masterfully rearranged. The deal was that oil was to be sold on a differential basis to a Light Louisiana Sweet (LLS) price, and that price was to be established during a five-day window around the time of delivery. The reason the price of SPR oil is based on LLS and not West Texas Intermediate (WTI) is two-fold. Most of the country’s refining is located in PADD III (Gulf Coast). Refiners work with the LLS price and this price ultimately determines product prices and crack spreads. Secondly, it would have been the LLS-Brent spread that determined the demand from bidders at the sale.

The weighted average price reported by the SPR office was $107.20/bbl, about $1.30/bbl less the closing price of LLS on June 30th. The five-day average price between June 15th and June 21st (weekends excluded) was $112.78/bbl. The price in the “Apparently Successful Offers Report” is the successful differential, applied to this base price of $112.78/bbl. The weighted average differential versus LLS to be paid for SPR crude is thus $107.20 – $112.78/bbl or -$5.58/bbl. This means the lowest winning bid was $7.80/bbl under LLS, and the highest bid was $3.02/bbl under LLS. To put it simply, if all the oil moved versus the June 30th LLS price of $108.50/bbl, the weighted average purchase price across all barrels sold would be $102.92/bbl, not the inflated DOE price of $107.20/bbl. By now it should be clear that neither can the IEA or the DOE do math but that they sold 30 million barrels of emergency crude at an average discount of $US5.58/bbl.

soonercruiser
7/6/2011, 10:36 AM
Phil from what I am reading, Obama sold the oil at $10 below market price. Obama just subsidized the speculators at a cost of $300 million to the American public.

Something tells me you won't see that in a campaign ad next year. At least not from Obama....

Link to story about underselling the strategic reserve...?

pphilfran
7/6/2011, 10:44 AM
I found something that says $5 a barrel, but it is complicated.. I think we need an expert to weigh in .

That makes sense...

EnragedOUfan
7/6/2011, 10:54 AM
A very questionable move by the POTUS, but I'm still unsure on how it is the Presiden't responsibility to control gas prices or even if the President has the power to "control/regulate" gas prices. I realize he can tap the reserves, but other than that, what can he possibly do to control prices?

I think we must prepare for this to be the norm, we have the most supply and demand in the world and we're a gas guzzling nation. Take Oklahoma for example. If I need to walk down the street to the grocery store, I'll have to walk through peoples yards and grass because sidewalks are almost nonexistant where I live. Cars are the American way, Oklahoma is not pedestrian friendly, and our cities are built too spread out to even consider walking sometimes.....

sappstuf
7/6/2011, 12:55 PM
A very questionable move by the POTUS, but I'm still unsure on how it is the Presiden't responsibility to control gas prices or even if the President has the power to "control/regulate" gas prices. I realize he can tap the reserves, but other than that, what can he possibly do to control prices?

I think we must prepare for this to be the norm, we have the most supply and demand in the world and we're a gas guzzling nation. Take Oklahoma for example. If I need to walk down the street to the grocery store, I'll have to walk through peoples yards and grass because sidewalks are almost nonexistant where I live. Cars are the American way, Oklahoma is not pedestrian friendly, and our cities are built too spread out to even consider walking sometimes.....

How about opening the Gulf back up to oil production? We are losing supply from the Gulf with no end in sight.

By releasing oil he is admitting that we have a supply problem. Why not try to ease the long term problem by opening up areas to new oil exploration?

sappstuf
7/6/2011, 12:55 PM
That makes sense...

Good.. Can you explain it to me?? ;)

pphilfran
7/6/2011, 01:01 PM
This link will give you the various PADD's and their location...

http://www.eia.gov/oog/info/twip/padddef.html

Since most refineries are located in PADD 3 (Gulf Coast) they used the average price of LLS crude (crude from the PADD 3 region) instead of West Texas crude or Brent...

I think.... ;)

Bourbon St Sooner
7/6/2011, 01:16 PM
I found something that says $5 a barrel, but it is complicated.. I think we need an expert to weigh in .

LLS is the benchmark crude and has a certain quality (gravity and sulfur content) attached to it. The price offered will be adjusted based on the quality of the crude being sold compared to the quality of the benchmark. So, if the SPR crude is of lesser quality than the LLS benchmark, then the price may be LLS less $2 or $3.