Tuesday, June 28, 2011
In an unprecedented move, the IEA announced on June 23 the release of 60 millions barrels of petroleum products including 30 million barrels of crude oil from the US Strategic Petroleum Reserve (SPR) supposedly to compensate for the loss of the Libyan production. The basic idea is to "shock" the oil market and further lower prices by adding 2 million barrels per day over a period of 30 days. The last time such action was taken was after hurricane Katrina in 2005 and during the first Iraq conflict in 1990-91. Already, prices have dropped by about $3 since June 22, more below the fold.