>http://www.ft.com/cms/s/0/dbf5f648-9d9c-11e0-9a70-00144feabdc0.html#axzz1QBwVse86
>
>Snippet:
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>This is only the third time in the history of the IEA – set up in 1974 as a counterbalance to Opec after the Arab oil crisis – that there has been a release. The move has been triggered by western concerns about the impact of high crude prices on the economic recovery.


I don't understand this move & I'm not buying what the punditry has been saying.

- Politically it doesn't make sense because it's way too far out from the election to gain any benefit.
- Breaking speculators? It could be an attempt to send a message but what exactly? That the US will manipulate the market so you don't? Technical speculators will adjust their uncertainty variables. Transportation speculators will buy higher and pass the costs.
- Balancing Libya's lost output? Maybe, but since I don't understand why the US, France, etc are there in the first place I don't see the benefit. Libya provides oil to France. Why is France attacking? Are we just supporting an ally? I'm still scratching my head over that.
- Offset inflation? Reported inflation numbers exclude energy, however, since energy is used in everything else...again short term gain, why now and not later?
- Could this be an early signal for what will happen again nearer the election if oil prices rise? Perhaps, but events like this cause uncertainty. Uncertainty raises costs.

Of course, just because I don't understand it doesn't mean I didn't re-examing all major oil integrateds looking for a buy. ;)