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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Terry D who wrote (74053)9/21/2000 9:55:27 AM
From: Terry D  Read Replies (1) of 95453
 
Another somewhat obvious question about SPR -

What is the quality of the reserve?

I assume it is higher-quality crude and would replace heavy oil. The refining would be quicker than low grade. So the build would be quicker than any OPEC related move.

So would we move from backwardation to contango.

And contango is a healthier market for any commodity - because now you are paid for for taking longer term positions, so you can cover storage, etc.

SO _ it seems that in effect, would improve the stability of oil prices at a lower level than today's.
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