Hmm..it appears that my memory may be slightly off-target. What appears to have happened is that the Senate approved a sale in March 2004 and this led to the price falling, but the government basically didn't in the end and so the price went back up.
Taken from the CRS Report given to Congress found here:
http://www.fas.org/sgp/crs/RL32358.pdf
Quote:
On March 11, 2004, during debate on the FY2005 budget resolution, the Senate
called for a suspension of deliveries and a sale, instead, of 53 million barrels of RIK
oil.
Proceeds (estimated at $1.7 billion) would be used for deficit reduction and
increased homeland security funding for states.
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and apparently it was passed:
Quote:
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Expectations and psychological factors also play a role in price formation. When the Senate passed a bipartisan sense-of-the-Senate resolution (sponsored by Senators Levin and Collins) to the 2005 budget resolution that would direct the government to cancel delivery of RIK oil and divert 53 million barrels to the market, the price of crude oil futures fell $0.59/barrel.
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I'll try and find a more succint source, because that one is a bit of a mission to wade through.
[ 11-02-2004, 12:45 PM: Message edited by: shamrock_uk ]