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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.37-0.9%Dec 3 3:59 PM EST

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To: Sarmad Y. Hermiz who wrote (111957)11/20/2000 12:42:18 AM
From: schrodingers_cat  Read Replies (2) of 164684
 
>Regarding oil...

Although it's dropped out of the headlines, there are still problems in the oil area.

1/Tanker shortage. Rates are up six-fold from a year ago, and are slowly continuing to rise due to high demand. This will limit the amount of extra oil that OPEC can supply.

2/Saddam is still trying to bust the UN sanctions regime, and is threatening to delay shipments if he doesn't get his way. He's probably bluffing, but you never know.

3/Refinery shortage. Heating oil stocks simply haven't been built this autumn, despite excellent profit margins for heating oil. This chart shows the situation for 'distillate fuel oil', which is the same as heating oil and diesel.

eia.doe.gov

What happens next depends on the weather. Ask Santa for warm weather this winter! ;)<g>

Of these issues I think 3 is the one to watch, since the others can be alleviated by drawing on the strategic petroleum reserve.
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