A couple of months ago I outlined a controversial thesis that suggested the US Government had sought to coordinate an assault on high oil prices, which fundamentally threatened its economic recovery. Today we learn that the US Government has got even more explicit: coordinating a release of oil from its strategic reserves with other sovereign states in order to place further downward pressure on oil prices:
"Oil prices dropped sharply Thursday on news that the United States and Europe will sell 60 million barrels of oil from their strategic reserves over the next 30 days, a move experts called an important policy shift that should help restrain volatile energy prices.
Oil prices for month-ahead delivery fell by $4.39 a barrel, or almost 5 percent, to settle at $91.02 on the New York Mercantile Exchange. Oil prices rose by more than 20 percent earlier this year but closed Thursday near where they started the year. Gasoline prices nationally averaged $3.61 for a gallon of regular unleaded, down from $3.82 a month ago, but up sharply from $2.74 a year ago.
In simultaneous news briefings, the White House and the Paris-based International Energy Agency said that they'd release oil from emergency reserves, ostensibly to ensure adequate supply to refiners during the peak summer driving season."
