Hi Peter, peter & all :-)
I have been busy waxing my skis but I still pay attention and I still trust Mr. Sheito :-)
I thought you might enjoy the last paragraph:
Cheers
j
Le Metropole Members,
An article by George Clemens has been served at
The Toulouse-Lautrec Table entitled:
"The China Factor
Why Won't Crude Oil Prices Come Down?"
Azteca de Oro alerted me several days ago to this
analysis by a very knowledgeable oil-gasoline
expert and I have been waiting for the right moment
to bring it to your attention.
WTI December Crude oil closed today at the NY Merc
right under $33 per barrel and has range traded the
past couple of weeks. The API numbers have been
unexpectedly bullish week after week. It is very
unusual for pre-trade reports to continually
underestimate the inventory numbers.
>From George Clemens commentary:
"For the past few months, crude oil prices have
hovered above OPEC goals despite increases in the
availability of additional production. Initial
research into the problem suggests a shortage of
transportation capacity. It appears that although
all refineries are able to obtain as much crude
oil as they need to operate, they are not able
to import additional crude oil without bidding
prices up. It's not good business to pay a higher
price for something you intend to store in the
future unless you are sure prices will increase.
In recent months, refiners seem to be betting on
crude oil prices going down. But spot prices
continue at high levels. A slightly deeper look
into what's happening suggests prices may not go
down for two or three years. In fact, they could
peak well above current prices unless the
international refining community makes some very
important operational changes."
"The Problem is China's Rapidly Emerging Economy"
THEN this:
"FOR NOW and in the near term, to meet their new
gasoline demand and their new environmental goals,
China must purchase the lightest gravity (40+ API),
and sweetest (lowest sulfur) crude oil on the market.
And that is what they are doing. China's appetite
for the best crudes in the world -- primarily
those from West Africa --is sustaining prices,
and may drive them up further."
Today's Reuters Oil news:
NYMEX crude oil futures ended modestly higher on
Monday after news of export disruptions in
Nigeria reversed early losses.
Front month December crude settled 15 cents up at
$32.86 a barrel just off a session high of $32.97
a barrel struck on the news of a closure to
250,000 barrels per of Nigerian crude oil output.
The force majeure -- for the rest of November --
has..... END.
This will only exasperate the China oil problem as
it is the grade of oil that they are going
after. It is also will tighten up the US oil
market as it is similar to the Merc delivery
grade oil.
With winter on the way, look for some oil
market fireworks.
China will be opening up its gold market very
soon. Demand for gold, as it has for oil, should
begin to accelerate next year making it that much
harder for the Gold Cartel to continue their price
collusion. It means that we are that much closer
to exposing what may end up to be the most
grotesque financial scandal in US history.
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All the best,
Bill Murphy
Le Patron
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