Roulston Energy Partner on Release of Strategic Energy Reserve

September 6, 2012

Central planning is about the control of nature. Dams and levees on the Mississippi aimed at keeping a river that has swung for thousands of years fixed within its 1950 boundaries.

It’s also about the control of man and interactions with counterparties by distorting and confounding market signals.

We have an election coming up with gasoline prices at their highest (ever).  There is also the potential for war with Iran.  What better time than to jawbone a release of crude from the Strategic Petroleum Reserve to momentarily get you through the crisis (or the potential war).

Last week’s $2+ plunge in the front month WTI says it all. As quoted in the WSJ,:

“There are more rumors about an SPR release,” said Peter Donovan, vice president and broker at Vantage Trading, based on the Nymex floor. “Traders feel, with this storm moving into the Gulf, that it gives another reason for it.”

We’re still long crude. To read the whole article please visit


Stephen Maloney is a partner at Azuolas Risk Advisors with over 30 years experience in the US and EU modeling risk and valuation in energy, FX, and other commodities. Stephen has led energy M&A teams for Fortune 100 firms over 15 years. He also routinely advises executive and credit committees concerning high risk ventures and capital investments. His clients include companies, hedge funds, and financial institutions actively marketing or trading physical and financial commodities and derivatives.

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