"The International Energy Agency (IEA) announced 60 million barrels of oil will be made available to the worldwide oil market via releases from "strategic" stockpiles. The U.S. government will do the heavy lifting by releasing 30 million barrels (one half the total) from the U.S. strategic petroleum reserve (SPR). The SPR is currently near full capacity at 726.5 million barrels.
It is no coincidence this announcement comes as QE2 winds down, and after Ben Bernanke's speech Wednesday. Last November I wrote an article explaining why QE2 would not work. Why it would lead to a lower U.S. dollar and higher oil prices. We now know, without a doubt, that QE2 did not work. We have a lower dollar, higher oil prices, interest rates at 0%, a moribund housing market, and high unemployment. Surprise surprise. As I have stated many times:
We cannot solve a commodity problem (oil) with monetary and fiscal policy!..."
at http://seekingalpha.com/article/276551-60-million-barrels-of-strategic-reserve-oil-won-t-solve-the-problem?source=feed
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