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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: axial who wrote (120867)	5/19/2009 11:47:25 AM
From: JimisJim	1 Recommendation Read Replies (3) of 206330

I read an interesting piece over the weekend (which I can no longer locate) that laid out very logically why the price of oil climbed to the $60 range lately and that it does indeed have to do with S/D... the premise was that we keep reading about a lot of oil stored in Cushing and in tankers anchored in various places. The author wrote that the stored oil is not current "supply" but rather oil that has futures contracts on it -- it isn't for sale, but will be delivered (at higher prices) at some point in the future... meaning that current S/D is much closer to balance than it appears to be. I am not a commodities trader, so I can't speak to the technical details of the assertions, but was an interesting thesis. Anyone have any thoughts on this? Jim

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