Comments for Gasoline Futures Tumble as Stockpiles Increase, Demand Slides »
Posted By STONERS 6 months, 1 week ago in Business & FinanceGasoline futures tumbled after the U.S. government reported that stockpiles rose a third week as refiners kept rates at a six-month high and demand fell to the lowest in four weeks.
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STONERS6 months, 1 week ago
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"Gasoline inventories increased 2.33 million barrels, or 1.1 percent, during the week ended June 26, the Energy Department reported today, more than the 2 million gain projected in a survey by Bloomberg News. Demand dropped a second consecutive week to the lowest since May 29."
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“This is indicative of higher crude runs and lower demand, and is going to put pressure on refining margins.” -
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flyonthewallzz6 months, 1 week ago
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http://www.reuters.com/article/companyNews/idUKTRE...
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"Asked how much oil was floating on the seas, Frontline's acting chief executive Jens Martin Jensen told Reuters: "It's probably close to 100 million barrels... I'm talking about only crude.""
FTA
"Tsakos Energy Navigation Ltd. Chief Executive Officer Nikolas Tsakos today said 60 million barrels of refined oil products are being stored on ships at sea."
So it seems we have 160 million barrels of oil floating around out there.
From the bit that I have read it is a lot harder to clean up refined product, and a spill is much more destructive.
This makes me worry about the "Oil Spill Liability Trust Fund" (OSLTF). The deal was that industry paid a nickle per barrel until the fund hit the target amount and then no longer had to pay. They are able to self insure themselves up to the limit of their liability, and the trust fund would be used to clean up the rest.
They have been paying into it lately.
According to Treasuries monthly report we have collected $20 million for the fund so far this fiscal year (3/4), and and collected $-7 million for a comparable period last fiscal year.-
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flyonthewallzz6 months, 1 week ago
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http://tonto.eia.doe.gov/dnav/pet/hist/wttstus1w.h...
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The link I posted in the above comment states:
"Weak demand has led to rising crude oil inventories in the United States, which last week reached a near 19-year high."
The data provided by EIA goes back a little more than 19 years, and the numbers they provide show that inventories have never been as high. significantly! I get a 128 million barrel variance. I think private tank farms have a capacity of about 375 million barrels and they are full. The SPR has a capacity of 727 million barrels and it is full.
I do not think the EIA includes oil inventory that is floating around in ships offshore.
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flyonthewallzz6 months, 1 week ago
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http://tonto.eia.doe.gov/dnav/pet/hist/wcsstus1w.h...
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There is now 722.7 million barrels of oil in the SPR.
The stated capacity is 727 million barrels.
It is 99.42% full.
On Jan 16th DOE signed a contract to buy 10 million barrels.
The contract was awarded to a disreputable company (Vitol).
Between Aug. 8, 2008 and Jan. 2nd: 5.4 million barrels where released from the SPR.
Price at the pump went from $3.81 to $1.61, and hit $2.22 on election day
Between Sept. 2, 2005 and Nov 4 (election day): 16 million barrels wher released from the SPR and gas went from $3.07 to $2.37
When the price of a barrel hit $100.00 we continued to fill the SPR at a average rate of 386,000 barrels per week. And gas went from $3.26 to a high of $4.11.
From Nov. 7, 2008 till Jan. 2, 2009 an average of 1000 barrels per week was released, and gas went from $2.22 to $1.61.
Since Obama has taken office the SPR has been filled at an average rate of 943,000 barrels per week, and gas has gone from $1.84 to $2.70.
During that time there was some reduction in the amount stored in industry tank farms, but now they are holding a greater capacity than ever before. -
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flyonthewallzz6 months, 1 week ago
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http://www.sqwalk.com/blog2009/001609.html
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"The $100 per barrel drop in crude oil prices since July, to around $50, has pushed the market into an unusually sharp contango -- a scenario where the cost of oil today is much lower than the price of oil in the future.
Meanwhile, the global economic crisis has led to a more than halving in the cost of chartering oil tankers since last year.
This combination has created an opportunity to buy oil, simultaneously sell it for future delivery to lock in a profit, while storing the oil at sea until the delivery date.
In total, close to 100 million barrels of crude are being stored offshore, compared to none a year ago, Jens Martin Jensen, acting chief executive of Frontline, one of the world's biggest independent oil tanker owners, said last week."
This article is worth reading.-
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beavith16 months, 1 week ago
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it is a good article... props.
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...This combination has created an opportunity to buy oil, simultaneously sell it for future delivery to lock in a profit, while storing the oil at sea until the delivery date...
FWIW, the price isn't really locked. another sharp drop in prices, like we had through the fall of 08, and the guy that holds that future is left holding the bag and garnering a loss.
this whole current price of oil is where institutions are stashing cash, counting on getting into oil before the big recovery., where each buyer is bidding the price up in a ratchet style.
thing is, i don't get where anyone should be optimstiic for any recovery. the pundits talk about a strong recovery or a weak economy. i have no idea where they get that from. the banks that are holding trillions of CDO and CDS $ are STILL broke. liquidity is only good as long as the Gov't and europeans are pumping cash into the world economy.
what would it take to kick us over another cliff? i don't think it'd take much.-
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flyonthewallzz6 months, 1 week ago
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I really do not understand the futures market thing as well as I should.
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But as I understand it...at some point the holder has to take physical delivery.
I may have it wrong ...but I was under the impression that traders have to unload what they have to someone capable of taking delivery before the deadline hits.
The more I look at differant industries, it seems that the companies are owned by the same list of major holders. I have to wonder what these bankers know about the buisnesses they own.
I can see why they would have such false optimism. They are the ones that have benifited the most from the increase in government spending. Most of the money AIG got went directly to that same list of holders.
According to the monthy treasury report Obama has spent $371 Blllion more than Bush did in the comparable period. (fiscal year began Oct. 1 so that represents 3/4).
$135 billon of that spending was the TARP.
I think only a very few individuals benifit from the radical fluctuations.
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BB646 months, 1 week ago
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Don't look to any great savings here. Two major reasons. First our currency is falling in value. We continue to print money without really having the backing. Secondly, there will be shortages. With the new cap & trade tax policies being rammed through, at least 2 full refineries will be closed. We will have to buy our gasoline from overseas. So instead of expanding our fuel production and improving our future, our president and his congress are restricting free trade hurting the America consumers and workers. Some hope and change. So much for national security.
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flyonthewallzz6 months, 1 week ago
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Hey BB64:
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It took me a while to figure ot you served on the USS Wisconsin.
I have long had a facination with battleships.
And have almost had my lights punched out a couple of times for saying they should still be in service.
I wonder what you think?
Have you seen the 16" guns fired?
Every time I here about things like those speed boats in the Gulf or the Pirates in Somalia, I can not help but think about the respect such a dreadnuaght would receive.
I have read that the 16" guns cost about $500 bucks to fire and make a 12 story splash.
I have also read they are a good 10 knots faster than a destroyer.
I have been planning to take a trip to look at the USS New Jersey (BB-62).
I would like to see the armor, is there a place on ship that shows it the best?
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