Reuters: SemGroup

Posted on July 24, 2008 @ 4:25 pm (Thursday) by WARREN MOSLER

Looks like it was a likely substantial contributor to the last run up and the subsequent quick sell off. ‘Demand destruction’ isn’t yet anywhere near enough to dislodge the Saudis from setting price as swing producer:

REFILE-SemGroup a small factor in oil price drop -experts

by Matthew Robinson and Robert Campbell

(Reuters) SemGroup’s collapse from the 12th biggest U.S. private firm into bankruptcy was only a small factor in the $23 per barrel drop from oil’s record high over the past two weeks, energy experts said on Thursday.

The Tulsa-based company declared bankruptcy this week after racking up $2.4 billion in losses shorting crude oil futures on the New York Mercantile Exchange, including a $290 million loss owed to SemGroup by a trading firm affiliated with former Chief Executive and co-founder Thomas Kivisto.

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Reuters: House rejects selling 10% of SPR

Posted on July 24, 2008 @ 3:39 pm (Thursday) by WARREN MOSLER

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Just saw that the house just rejected this.

Looks like it was one more reason for technical weakness in crude, along with the vote to limit speculation and the oil storage company’s futures and cash market issues and bankruptcy.

White House threatens veto on bill to sell govt oil

by Tabassum Zakaria

(Reuters) The White House on Thursday threatened to veto legislation that would require the government to sell 10 percent of the oil in the nation’s emergency petroleum stockpile.

The House of Representatives was expected to vote on the bill later on Thursday. Democrats hope the legislation will lower oil prices by putting on the market more of the Strategic Petroleum Reserve’s light, sweet crude that is sought by refiners.

“Drawing down our emergency oil reserve in the absence of a severe energy disruption is counter to the purpose of the SPR, and offers the nation a quick fix instead of much needed long-term, responsible energy solutions,” the White House said in a statement.

The bill would require the government to sell 10 percent of the emergency stockpile’s oil, or 70 million barrels, in the open market. About 40 percent of the stockpile’s oil is light sweet crude.

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