Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Telemarker who wrote (74360)	9/23/2000 12:19:39 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

The refiners ARE buying crude, just not for storage. Remember that they are moving over 15 million barrels a day through their plants. Put yourself in their shoes last spring. You think prices are going to go down from where they are now and you have much larger stores than you think you "need". The way to play this is to use up your excess stores, buying less of the "high priced" market crude. Later, when prices go down, you will rebuild your stocks with the cheaper oil. Of course prices have NOT gone down and now some of those refineries have reached critical storage levels. They MUST buy the oil that they have been taking out of their storage tanks each week. this means oil being bought on the open market is likely to increase. They don't have to replace their storage but they do have to buy more oil. I have also read recently that the Chinese are actively buying crude for an "SPR" of their own. Have not been able to confirm this so far, but it makes some sense to me.