ISSUES....
Inside, confidential, off the record

 

To top or not to top ?

 

According to data released by the DOE, its buying will reach its height in May when it will buy 4.0 million barrels of crude. If it follows through on its promises, that will make May's inflows in the SPR the most in any one month period since March of '05. President Bush has said previously that it is his intention to top off the SPR at 727 million barrels. Presently it has approximately 699 million in storage, so it needs another 28 million barrels. Last week, Sen. Dorgan and Sen. Bingaman (D-N. Mexico) promised legislation (not yet put upon the Senate floor, so the legislation is only being threatened) that would force the Department of Energy to deal with the SPR "in a more sophisticated manner." As we understand it that would mean halting purchases for the SPR at current prices. The Sec'y of Energy openly opposes the legislation in question, saying that additions to the SPR and the bull market in crude oil may be coextensive but the former has not caused the latter. For the moment, we find ourselves agreeing with Bingaman and Dorgan.

-Dennis Garthman/The Gartman Letter/ 02 26 08

- For more on interesting comments, you can subscribe to The Gartman Letter by contacting Dennis Garthman: Phone 757 238 9346, Fax 757 238 9346 or dennis@thegartmanletter.com

Petroleumworld News 02/27/08

ISSUES.... Is an independent journalist effort from Petroleumworld, on Inside, Confidential
and Off The Record Information, its views are not necessarily those of Petroleumworld

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