A single day.
A new find? A long term commitment from OPEC to increase production? An announcement from Venezuela that it would end its gasoline subsidies in that country to ease demand and therefore apply downward pressure on prices?
None of that. In fact, it was a simple single one day event.
(Reuters) – Oil tumbled 6 percent on Thursday to a four-month low after the world’s top consumers released emergency oil reserves for the third time ever, a surprise intervention to aid the struggling global economy.
No new find? No political condition that would signal a long term impact to the market? Nothing?
The release includes 30 million barrels of light, sweet crude from the U.S. Strategic Petroleum Reserve — the same quality that markets have lost due to the Libya disruption.
I still don’t understand.
The relatively small amount of oil we are losing due to the conflict in Libya caused the price to rise? And then, when we make up that loss, the prices go down?
But we’re told that no amount of US oil production could have an impact. And yet, when an amount of oil much MUCH smaller than increased US production calls for, prices react.
Strange thing that market. Strange indeed.