Oil War, Gold Down, Silver Down Even More

Some stuff I'm reading today.

U.S. Returns Fire in Saudi Arabia's Oil War
The U.S. may buy crude (for the Strategic Petroleum Reserve) to offset a price collapse caused by Saudi dumping and support U.S. shale producers. It could also go further, tacking on a tax on Saudi oil, an issue that would at some point go before the world trade council.

BHP Signs Deal to Sell $50 Million of Lightly Processed Crude Without Official Permit.
A major energy company will soon sell U.S. oil abroad without explicit permission from the government, another sign that the decades-old federal ban on crude exports is crumbling.

BHP Billiton’s deal to sell about $50 million of ultralight oil from Texas to foreign buyers without formal government approval is likely to be only the first of many such moves as energy companies seek new markets and higher prices for the surge of crude now pumped in the U.S.

People in the industry said the U.S. Commerce Department, which oversees oil exports, has been encouraging companies to pursue independent exports without having to issue new rulings permitting it, a process being called “self-classification.”

The department didn’t respond to requests for comment. Department officials have maintained that there has been no change to U.S. oil-export policies.

Refiners and other buyers of light oil across Asia are interested in American condensate so they can diversify their supply from the Mideast.

Silver Falls 5% to a New 4.5-Year Low. Gold Breaks Support

Gold sunk below $1,150 per ounce on Wednesday to its lowest since mid-2010, opening the way for a fall to $1,000 as a surging dollar and stronger share prices weaken the investment case for non-yielding bullion.

Silver fell even harder to hit its cheapest since February 2010 at just above $15 an ounce.

No. 1 gold ETF sees biggest monthly outflow this year in October
The world's largest gold-backed exchange-traded fund, New York's SPDR Gold Shares, saw an outflow of over $1 billion of metal last month as investors lightened holdings in anticipation of a further price drop from current four-year lows.