To: mishedlo who wrote (67822 ) 8/9/2006 11:08:08 PM From: bond_bubble Read Replies (2) | Respond to How about Gold, Copper, Zinc? Cements, steel, commercial building construction materials, oil rigs? There was a report I saw where American oil companies could not offord the rigs because middle east was willing to pay more rent on them!! I heard that west coast oil refineries were having oil inventories for 45 days. Do you think the refineries in the US increased their oil "hoarding" since Katrina to be better prepared from the likes of Katrina? Do you know that "inventories" at refineries are not counted as part of API/SPR oil inventories report? Do you think the ethanol manufacturers are going to start "hoarding" corn so that they can double ethanol production? Dont they have to compete (hoarding) against feed producers? I definitely think there is lot of "hoarding" at the "early" stages (lumber) of production but probably not yet at the later stages of production (furniture). I mean, the refiners are dump if they did not hold lot oil in inventory as prices are continously rising and the cost of carrying is less!! Dont you think a CEO that is paid $400 million salary will not think of this "profit" option? If you can accept that homebuilders build faster because home prices are continously rising and they were busily buying lands (inventory) few years ago - how come you are not willing to accept that refineries are not hoarding? Did you know that west coast oil inventory was 45 days of 4% of US production? i.e 18 Million barrels just in the west coast!! Do you think west coast refiners would have hoarded so much say in 1998 when oil was $10/barrel? In many "early" stages, there is nothing to hoard: oil rigs, tyre for mines, mining equipments etc. Dont you think even if they run out of orders, they will have to build inventories in these sectors? There is definetely lot of hoarding in lands (early stage production material) (in the prime areas).
