BetaPro Crude Oil Inverse Leveraged Daily Bear ETF T.HOD

POSSIBLE REASON FOR THE RALLY IN CRUDE...

[tinyj]

I  got this from the Yahoo finance HOD chat room.  It was released Thursday, Jan 22.  Food for thoughts ideas?

 

By David Bird 
  Of DOW JONES NEWSWIRES 

  NEW YORK (Dow Jones)--Plans to fill the U.S. Strategic Petroleum 
Reserve to capacity by the end of January 2010, show 
peak flows of crude oil into the stockpile of near 230,000 barrels a 
day in March, the highest level since December 
1984. 
  The Energy Department on Thursday posted a tentative delivery 
schedule for movements of crude oil beginning this month 
 and ending in January 2010, when the reserve at capacity of 727 
million barrels. The highest volume shipped in any 
month will be 7.07 million barrels in March, or 228,065 barrels a day. 
The Energy Information Administration projects 
refiner demand for crude oil will be lower than usual in the first 
several months of 2009 due to seasonal maintenance 
programs. 
  The DOE said Friday it will spend $553 million to buy 10.683 million 
barrels of crude oil for shipment to the 
Strategic Petroleum Reserve from February to April of this year. 
  The purchases, made with funds raised in the sale of SPR crude after 
the 2005 Hurricane Katrina emergency, will be the 
 first direct buys of crude for the stockpile since 1994. 
  The direct purchases are part of a move to add 16.8 million barrels 
to the emergency reserve. 
  DOE said it also awarded contracts to transfer a further 6.157 
million barrels of oil to the SPR under the royalty in 
kind program, at a "modest" rate of 26,000 barrels a day from May 2009 
through January 2010. 
  Under the royalty-in-kind program, crude oil is shipped to reserve 
as payment for the rights to produce on oil federal 
 land, in lieu of cash payments. 
  The SPR, held in salt caverns along the Gulf Coast, has the capacity 
to hold 727 million barrels of oil and is 
currently 97% full at 702 million barrels. 
  DOE issued solicitations on Jan. 2 to buy up to 12 million barrels 
for the SPR after Congress last summer blocked any 
new acquisitions when prices were sharply higher. Crude prices rose to 
near $150 a barrel last summer, but were more 
recently near $36.50 a barrel, not far from five-year lows, and making 
acquisitions attractive. 
  Along with the plans detailed Friday, about 7.7 million barrels of 
crude is scheduled to be sent to the SPR between 
January and May 2009 through repayments of barrels loaned to refiners 
after Hurricanes Gustav and Ike hit last September 
 and the restarting of an earlier round of royalty oil shipments, 
which were deferred by Congress until this year. 
  Taken together, all of the moves would fill the SPR's current 
capacity by the end of January 2010. The Energy Policy 
Act of 2005 authorizes an increase in SPR capacity to 1 billion 
barrels.