OIL Price
"As they cut back on imports"
Seems we talked about that once. No shortage of oil in the world, driving season over, plenty of NG (for now) Yet they allowed the inventories to get low.
I think they expect to buy oil cheaper in the fall and use the low inventories to justify high gasoline prices for a while longer. Selling oil forward ? The China buying may be slowing and they know the oil producers need cash flow - the oil will show up in the market place at lower prices, that may be the bet.
Get rid of current inventory at high prices before the world prices fall and they have to sell at a loss. Likely a pattern there.
Could even have oil storage in tankers ready to delivier after the report. I've seen them set off Louisianna by the 100's - doubt they count that volume until they unload.
Hurricane season - low inventories? That would pop the price up if we get a hurricane through the gulf, just the story, doubt that enough oil production would be lost to really effect world supply unless several of the deep water spars were destroyed and that is doubtful- they are built to take it!
Several refineries have been shut down in north America, if a hurricane knocks out a refinery, gasoline supply would deplete much faster than a few years ago. Oil would still be in storage, but they use the shortage of gasoline to run up oil prices anyway. Just because they can I guess.
Houses for sale inventory when up today!(no shortage!!) Avg Price went down!
Volume of sales when up and about a third of them were foreclousures. An empty reason for the market to go up. They just talked up the 4 months of increased sales, of course sales will go up, they are back to 125% mortgages with 100% tax payer backing selling bankruptures at deep discounts - that ought to get volume up - but the banks must be booking losses!. The same houses sold today may well go into default within a year!
Banks are holding 100 000 + homes off the market and off their books as losses, how long can they do it? Seems illegal! Bad loan should be booked within 30 days or so, guess they will always try to move bad news into the next quarter.
Unemployment went up and household income dropped.
Monday is another day!! We will see what we will see!
David |
