While Wall Street hates lower oil since it signals growth slowdown, recent action in oil continues to become a net positive for American consumers. (as does the bounce in the dollar) Today we have oil down below $90 for the first time since mid February, as the International Energy Agency announced the release of 60M barrels of oil from strategic reserves. 30M of this comes from the U.S. - the first such release since 2008.
- “Today, for the third time in the history of the International Energy Agency, our member countries have decided to release stocks.” IEA Executive Director Nobuo Tanaka said. “I expect this action will contribute to well-supplied markets and to ensuring a soft landing for the world economy.”
- The IEA said it would release 2 million barrels per day (bpd) over 30 days onto the world market to fill the gap in supplies left by the disruption to Libya's output. Libya was exporting about 1.2 million bpd.
- The Energy Department said Thursday it will release 30 million barrels of oil from its 727 million barrel reserve, about half of the 60 million barrels to be released globally. The U.S. release would be equivalent to about a day and a half of total U.S. oil consumption.