Why release Strategic Petroleum Reserves now?
Why is Obama administration making a decision to release Strategic Petroleum Reserves now? Do they forsee oil prices going up further thus a need to pre-empt it?
By lowering oil price, Obama may be trying to delay a recession from harming his chances of re-election. With Bernanke still undecided about whether FED should launch QE3, a lowering of headline CPI may make his job easier w/o increasing inflation further even with QE3 launched.
Are these calculations right? What if Israel decides to attack Iran and price of oil shoots up, will there be enough reserves to calm the market?
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