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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (115957)	12/30/2008 3:35:08 AM
From: 8bits	13 Recommendations Read Replies (1) \| Respond to of 206089

Just lucky, or cause and effect? It was also the month that the Iranians released a substantial amount of oil on the market also the Saudi's had a marked increase in production the month before (with some lag time before it hit markets..) Considering how small the additions to the SPR were versus total global consumption I would say it had negligible effect. I tend to think the Chinese stockpiling for the summer Olympics had some impact on the run up as well as speculation hedge and pension funds. As you have noted on other threads many commodities, the grains, metals, etc. had huge run ups, most of them topped this summer and all have had capricious drops since. That in my opinion would be a more important pattern to observe than marginal additions to the SPR. If you want to say you didn't like GWB as a President, fine, I also have found him quite flawed, but I think pinning the oil run up on marginal additions to the SPR is not the answer. I wonder how far you could quickly run up oil prices with a double theater war combined with filling the SPR. Well we are still at war in two theaters and the price of oil has dropped by more than 75% in the last 6 months.