Marc,(sorry for the misspelling of your name yesterday, got in a hurry)
Back to the "days usage in storage" issue: I don't recall who the poster was, and can't find the post #, but weren't the days usage actually declining compared to last year?? I understand what you say about there being no where to put the oil, so the "perceived" glut is relative to the lack of storage facilities, not demand.
Given that, just as a hypothetical, what if, instead of there being 23-24 days usage stored, there were only 15 days usage stored, and there was still nowhere to put the oil...would oil price be where it is now? Or, would traders realize, more importantly, demand will eat away at this stored oil in 15 days, and we must have more storage capacity? Why aren't there more storage facilities built as demand rises? I must be simplfying this too much; I can't possibly be understanding this...<gg>
Long vrc, fgii, mind, uti, pten, & yes, even glm. ( I should have forewarned everyone of my "jinxing" ways....sorry!)
Karen B. |
