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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (9481)	5/8/2005 11:56:04 PM
From: badog	Read Replies (1) \| Respond to of 37387

Crossy, I'm still wondering if I understand all the dynamics of Contango. If oil users are building and storing inventories today to avoid higher future prices wouldn't that reduce pressures on demand going forward and tend to then lower the future pricing? The only flaw with my statement above would be if an ever increasing demand continues to intensify, over and above the stored inventories, and continues to put pressure on supply. This apparently must be the case. So even with all the fancy footwork of contango's and futures pricing caused by seasonal variations, we are simply back to supply vs. demand driving prices. Badog