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Today's coordinated move by IEA looks as if its a politically and ill timed move.
Oil is tumbling after Federal Reserve Chairman Ben Bernanke warned that the U.S. economy is weaker than previously thought and the International Energy Agency said it was releasing 60 million barrels of oil to make up for a loss of Libyan exports.
The IEA announcement further evidence that the rebellion in the oil-rich country has tightened global supplies.
Itz suggested several days ago too take a half-position on the Proshares Ultra Crude Oil ETF (UCO) @ $42.50. Also stating to watch for a test of the lower end of the channel ($90). For now lets give this a few days to see how it plays out before adding to position, consensus is calling for oil to head to $85, possibly. UCO currently trading at $38.92.
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Is the SPR oil release a dangerous game? A look at what's behind today's drop in oil and its impact on the market, with the Mark Fisher, MBF Clearing Corp. founder/CEO.