The world is run by idiots.
The administration brain-trust didn't let the price get high enough for this move to work. As Central banks know, you must time your interventions for maximum impact. Catch an inflection point and you can get market forces (read: margin clerks) to do the work for you. The buyers have more greenbacks than the government has oil (thanks Ben, Mario), so you have to catch them in an overextended position before you cut 'em off at the knees.
WTI futures down a buck at $104.43.
Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks, two British sources said, in an effort to prevent high fuel prices derailing economic growth in an election year.
A formal request from the United States to the UK to join forces in a release of oil from government-controlled reserves is expected "shortly" following a meeting on Wednesday in Washington between President Barack Obama and Prime Minister David Cameron, who discussed the issue, one source said.
Britain would respond positively, the two sources said.
"We regularly consult with the British on energy issues and any discussion that we had was in that context. We will continue to monitor the situation and consult with them and others," an Obama administration official said.
Rising world oil prices, up to $125 a barrel for Brent crude, have pushed gasoline prices up sharply this year and threaten to choke economic recovery ahead of Obama's bid for re-election in November....MORE