Mar. 17 at 4:13 PM
$SPY $CL_F $XLE $USO $CVE @SilbergleitJr and I have a feeling that we will see a sharp spike in the crude oil price as soon as the bids for the US DoE RFP on 86m barrels to be released from the US SPR due tomorrow are cleared.
Why?
These barrels will be bought at
$93 and then sold immediately at the real world price of
$150 while repurchased (because SPR are barrels “on loan”) using long dated oil futures currently trading at a asinine cheap
$70.
Yes, oil traders will be making a
$6 B risk-free profit at the expenses of US taxpayers that not only will see virtually no sustained price reduction benefit, but will also be exposed to higher risk of shortages due to depletion on SPR while the biggest oil supply disruption in history worsens every day with no end in sight.
