What Is Really Behind Tapping The Strategic Petroleum Reserve

Here on navigatethezoo.com , I have written several articles pertaining to the US government’s artificial manipulation of the precious metals markets. Now it appears they are trying to manipulate the oil market.

About 5 weeks ago, silver was nearing an all time high and this was threatening the value of “Bernanke’s printing press dollar.” Bernanke, working with the CME, raised the margin requirements needed to buy silver futures contracts an unprecedented 5 times in two weeks. There are several articles on navigatethezoo.com that go into further detail on this market manipulation technique. This week, the head of the largest bond fund managing firm in the world (PIMCO), confirmed that this government manipulation was behind silvers decline.

This morning, the markets were jolted by an announcement by the International Energy Agency (IEA) that 60 million barrels of oil from worldwide strategic petroleum reserves would be released into the global markets. The United States stupidly agreed to contribute half of this amount, or 30 million barrels of oil from the US strategic petroleum reserve. To put this in perspective, this is equal to the amount of oil that the US uses in about two days or the global markets use in twelve hours.

My opinion on the matter is that this is once again the administration trying to manipulate global markets because it can’t accept the truth of the markets. When silver and gold approached all time highs, the arrogant administration blamed it on speculators, instead of the fact that they were printing tons of money. As oil has climbed, they are once again trying to attack futures traders by blaming the rise on speculation and not market forces.

From The Zoo Keeper To Obama and Bernanke: Oil is going up because China is using more and more oil each day and now uses more energy than we do in the United States. Oil is a finite resource and when more people are chasing a finite and diminishing resource, the price is guaranteed to go up. Your little market manipulation move will only cause oil to make a very large move upwards down the road.