No place to put all the oil in N. America

Quote from silk:

May 31 (Bloomberg) -- Royal Dutch Shell Plc, Europe's largest oil company, and Vitol Group, a Rotterdam-based trader, are among companies to hire supertankers to store up to 20 million barrels crude in the Gulf of Mexico because onshore storage is nearly full.

Shell hired the Atlantic Prosperity and the Front Scilla for up to 60 days' storage, while Vitol hired the carriers Irene SL and Patris for 45 to 60 days, according to Oslo-based PF Bassoe A/S and other brokers. Oil companies may have hired at least ten tankers for storage, Nikos Varvaropoulos of Optima Shipbrokers in Athens said in an e-mailed note.

``There's no point in trying to deliver crude now given the current level of stocks in the main refining centers of the Gulf Coast and mid-continent,'' Harry Tchilinguirian, an analyst at BNP Paribas SA, said in an e-mailed note today.



http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aumdpqVm01ts
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And yet the price of gasoline keeps on moving sky high.

Oh wait, the gasoline market is the only market that is decoupled from reality of a normal market.

In other markets, supply increases to meet demand.

In the gasoline market, there's always a "kidnapping in Nigeria" that precedes a further rise in prices.
 
Quote from arealpissedgoy:

And yet the price of gasoline keeps on moving sky high.

Oh wait, the gasoline market is the only market that is decoupled from reality of a normal market.

In other markets, supply increases to meet demand.

In the gasoline market, there's always a "kidnapping in Nigeria" that precedes a further rise in prices.
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The post you responded to was about oil. Your post is about gasoline....two distinct markets. Gasoline is not "decoupled from reality of a normal market". Supply cannot expand if the refining capacity is not there. Meanwhile, there is ample supply of oil, which again, does gasoline supply no good if you can't refine it.

Try reading your economic text again.

OldTrader
 
Big oil and big refiners are sensitizing American Consumers to higher prices.

Prices have little to do with supply & demand.

They know the U.S. government won't do anything about manipulation of prices.


It's like putting a turkey into a pot of water, and then turning the stove on. The turkey won't feel like it is too hot at any point. It's a slow ratchet.
 
Quote from ByLoSellHi:

Big oil and big refiners are sensitizing American Consumers to higher prices.

Prices have little to do with supply & demand.

They know the U.S. government won't do anything about manipulation of prices.


It's like putting a turkey into a pot of water, and then turning the stove on. The turkey won't feel like it is too hot at any point. It's a slow ratchet.
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Prices have little to do with supply and demand? LOL! So the fact that gasoline stocks are nearly 6% UNDER last years levels means nothing eh? Simple manipulation?

You got any evidence of "manipulation"? Or would a reduced supply indicate a higher price? LOL. Have you ever read any economics?

OldTrader
 
Quote from silk:

There are plenty of refineries
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Most of which are old, worn out and are not operational. Some of them cannot even be operated even if they were brand new because of their location and regulation change.

You sound like you are short oil and are in pain, because you refuse to look at the whole picture.

Price manipulation or not, as long as the people are buying, why should the price go down?
 
Quote from jaburns82:

Where do you get your Energy info from? I'm primarily a technical trader, but would like some fundamental filters. It would appear you're in the know. Thanks in advance for the response... and sorry if this is thread jacking.:)
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My fundamental "event" info comes from friends that trade at other companies and reporters that call to see if I have heard anything about such and such. More times than not I have not heard it yet, but they give me a clue that a story is gonna hit the wires. 95% of it is natural gas related though. The crude reporters don't call me, I don't trade it professionally.
 
Quote from OldTrader:



I think there are much bigger factors at play, like weather patterns, overall economic patterns, supply and demand statistics, possible geopolical concerns, inflation expectations, etc etc. Refinery actions are way down the list.

OldTrader
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I agree, there are a multitude of factors and they are all built into the market. No single one thing is the cause.
 
I don't understand how traders can put rbob and cl into a separate category than equities when it comes to price action. The excuse that there's never been a shortage of gas at your local gas station is funny; there's never been a shortage of goog at my broker either, yet those evil manipulators keep pushing the price higher, from $100 to $500...those bastards, there was never any shortage, wtf?

It's called trading people, I understand John Q. Public not understanding this, but people that trade should know better.
 
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