Wednesday, September 03, 2008

How the US Gov. made 20 millions today from Hugo's Citgo

Hugo's Citgo needs to thanks the W' US Gov. for their generosity so they could continue to do business as usual in despite of Gustav.

The US Govt. just released 250,000 barrels of crude from the Strategic Petro Reserve to Citgo / Venezuela. The avg. price per barrel in the SPR is 28 and change. The current price of crude is 110. About 80/barrel profit x 250K = 20 million bucks.

DOE grants Citgo 250,000 barrels of oil from SPR

NEW YORK -- (AP) Citgo will be allowed to pull 250,000 barrels of oil from the Strategic Petroleum Reserve because of its inability to secure crude in the aftermath of Hurricane Gustav.

Venezuela's government-controlled Citgo Petroleum Corporation said Tuesday that supplies to its refinery in Lake Charles were cut off when the Calcasieu Ship Channel closed.

The U.S. Energy Department granted the request late Tuesday, so far the only request for fuel from the Strategic Petroleum Reserve.

The reserve is an emergency depot maintained by the Energy Department and can hold as much as 727 million barrels of oil in salt caverns along the Coast of Mexico.


For some quick facts about the SPR (strategic petroleum reserve), click here.

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