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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (114556)	12/4/2008 2:39:53 PM
From: gregor_us	10 Recommendations Read Replies (4) \| Respond to of 206344

The problem now is that this price at 44.00 is sending out a serious warning, imo, that some of the worst-case risks to global growth/recession are now in play. In other words, a huge move lower in global industrialism needs to keep playing out to get oil down to and to stay at these levels. So, at some point fairly soon here global equities may run into renewed trouble on that theme. gregor.us The outcomes that I see now for 2009 are as follows. 1. Oil at 44 in DEC 2008 is a brief moment like oil at 50.00 was in January 2007, and it will create it's own momentum upward in 2009 as the global money flood of monetary and fiscal stimulus takes hold. 2. Oil at 44 in DEC 2008 is a warning that it could go much lower not so much because of oil supply but because of a much more serious global recession that tilts towards a worst-case, Dickensian period. G

To: CommanderCricket who wrote (114556)	12/4/2008 5:37:34 PM
From: ChanceIs	Read Replies (2) \| Respond to of 206344

Shell, Koch Contract 4 Supertankers for Storage in U.S. Gulf >>>Commander. Weren't you around back in '98 when they had a fleet of about 500 of these these "storage tankers" hidden in the Straits of Magellan - just waiting for the slightest price increase for an opportunity to sell....and drive crude from $10 down to $5???<<< By Todd Zeranski Dec. 4 (Bloomberg) -- Royal Dutch Shell PLC and Koch Industries Inc. hired four supertankers to store oil in the U.S. Gulf Coast to take advantage of higher futures prices for crude in the months ahead, according to a shipbroker. Shell and Koch hired the so-called VLCCs, or Very Large Crude Carriers, to move oil from the Middle East to the U.S. Gulf and hold it offshore, Bruce Kahler, a broker at Lone Star, R.S. Platou in Houston, said today. The oil futures market is now in “contango,” meaning prices get higher in later delivery months. Contango encourages traders to store barrels rather than selling them now. Crude oil today fell below $44 a barrel to the lowest since level since January 2005. New York crude for delivery in December 2009 is trading at $57.36 a barrel. A supertanker would cost about 90 cents a barrel per month for storage, according to data from shipbroker Galbraith’s Ltd. VLCCs can carry as much as 2 million barrels of oil. Frontline Ltd., the world’s largest owner of very large crude carriers, or VLCCs, said Nov. 28 it leased out two vessels for storage and was working on a third such transaction.