[prajeshbhat]

The news that is making rounds these days is that IEA has released 60 million barrels of crude from the global SPR. 2 million barrels will be released daily for a month. It has lowered the oil prices for now. I have some questions.
What will happen to oil prices in August when 2 million barrels are taken off the oil markets overnight? Does IEA plan to refill the SPR? How does this effect the OPEC nations? Will they retaliate(by not increasing production)? Why provoke them anyway? They are probably the largest factor that is keeping the dollar in circulation.
Also, is bringing the oil prices down from $100 to $94 really a big relief? Was it worth it?

[prajeshbhat]

Now people are saying that traders will just buy this oil cheap and sell it back to USA next month or so when prices are high.