A rebound in oil and gasoline demand was not enough to overcome Greek worries. Not only did the Energy Information agency report that US oil use was at a 5-month high Gas demand also hit the highest level since last October. Still with supply art a record high in Cushing Oklahoma and a 1990 high over all the weight of the global economic fears continue to way. Economic data in the US was generally positive. Globally the oil market is over supplied which makes you wonder why the White house is pushing the g-8 for a strategic oil reserve release. It would seem that all that would accomplish is to irritate OPEC and other countries that have taken steps replace Iranian oil. Oh sure Iran is still taking tough even going as far overnight as vowing overnight to never give up their nuclear rights yet the market has already gone a long way to prepare for a cut off of Iranian supply.

Even India that had misgivings about losing Iranian oil has turned to Iraq as an alternative. Dow Jones reported that replaced Iran as India's second-largest crude-oil supplier in the recently ended financial year, preliminary government data showed Wednesday, as New Delhi cut shipments from Tehran ahead of impending sanctions from the U.S. and the European Union while Iran slipped to the fourth spot. Obviously a release from the strategic reserves at this time would be unwise and counterproductive. That may be why the White House is downplaying the report.

Speaking of unwise and counterproductive
Still the Fed minutes seemed to suggest that another round of QE if the economy takes a turn for the worse. Gold seems to be betting on that as it seems that after free falling it is showing strong signs of a bottom.

API President and CEO Jack Gerard said the administration's report on idle oil and natural gas leases is a political ploy designed to distract American voters from the administration's failed energy policy. Once again, the administration is trotting out claims about idle leases to divert attention from the fact it has been restricting oil and natural gas development, leasing less often, shortening lease terms, and going slow on permit approvals-actions which have undermined public support for the administration on energy. It is also increasing or threatening to increase industry's development costs through higher taxes, higher royalty rates, and higher minimum lease bids. It's absurd to contend the industry pays the government billions of dollars every year in bonus bids and rents to leave land idle. It develops leases as expeditiously as it can - often in the face of inordinate delays the administration's own policies create. The administration is being willfully misleading when it identifies leases as idle when companies are seeking approvals of plans or permits or fighting lawsuits. Just last week, the administration finally approved drilling on leases out in Utah after a four year permitting delay. From 2009 through 2011, the industry spent $600 billion to explore and drill for oil and natural gas in the United States, activity which accounted for three percent of all jobs created during that period. The oil and natural gas industry explores its leases as quickly as possible, paying rent and other fees as it does so, and returns tracts to the government that do not contain economically recoverable amounts of oil and natural gas. API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capitalprojects to advance all forms of energy, including alternatives.

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