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

To: Spekulatius who wrote (114581)	12/4/2008 7:36:05 PM
From: ChanceIs	Respond to of 206347

>>>they wan't to lock in the contango spreads <<< Another factor I just recalled while reading a different article and the journalist was frankly negligent to report. There is a special name for the tax which Texas levies on oil inventories on Dec 31. It might be "ad valorem." Not sure. Regardless, Texas (maybe the whole Gulf Coast) wants a percentage of the value of oil on shore in storage in Dec 31. It makes all the sense in the world to leave the crude in tankers 100 yards off shore. You don't pay tax on it. Somebody check me. I think that the tax is on VALUE (volume times price) vice a tax per barrel. I think hat the volume is rather easy to game - as with a supertanker. The price might be a little harder or credible. Could the majors be forcing crude prices down today to avoid or minimize taxes??? A little like tax loss selling in equities. I think it a little far fetched or much ado about nothing. Still other entities might be in Texas mode. I believe that Morgan Stanley built/bought physical storage in New Jersey as part of their LT crude trading/investment program. If this is a national tax phenomena, then the big players just might be up to some year end games.