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

To: Ed Ajootian who wrote (122132)	7/2/2009 8:15:39 AM
From: dvdw©	2 Recommendations Read Replies (1) \| Respond to of 206131

nonsense. super tankers as intermediate forms of storage devices, sounds like adaptation instigated by trading arms of contrivances, the world market adapted by slight of hand. Nothing more. if you want to invest in storage devices, try seagate or western digital. They are efficient and very low cost producers. Super Tankers adapted as release mechanisms of stored commodity is inefficient, and an aberration of utility. there is a cost....per barrell to store a commodity in an inefficinet medium, and what we are seeing in the market is the futures traders installing these inefficient added costs, to protect thier own books.Completly out of balance with supply and demand.

To: Ed Ajootian who wrote (122132)	7/2/2009 8:22:36 AM
From: axial	Read Replies (2) \| Respond to of 206131

Long-term, base demand is certainly higher. True. But short-term, inventories are near capacity and supply is increasing; producers are pumping more and OPEC discipline is relaxing. Economic forecasts are more pessimistic, and nobody's sure the global economy has found a bottom. When it does, rebound will be weak, not strong. Demand will have to grow a lot before tankers stop being used for high-cost storage, instead of simple delivery. Long-term crude will go up, but it looks like we're in short-term oversupply. The V-shaped rebound looks unlikely for 2009, and may be L-shaped in 2010. B&H could cause lost opportunities, especially since oils and crude are looking toppy. Holding may be OK, depends on the short-term correction. A few weeks of significant inventory draws and bingo! the correction is over. As always, could be wrong. Jim

To: Ed Ajootian who wrote (122132)	7/2/2009 11:44:25 AM
From: Archie Meeties	2 Recommendations Read Replies (1) \| Respond to of 206131

Ed, last I reviewed the numbers in '08, I concluded that growth in '08 BRIC demand wouldn't offset loss of demand from Japan/Europe/NA. However, much has changed since then, most significantly China's massive push to grow their domestic production and consumption of cars. Another hard to quantify factor: Fuel in India and China remains subsidized, and their gradual removal of subsidies will bring growth rates down. thenational.ae I tend to agree that we're riding less of a supply cushion than in times past, but all scenarios should be considered, including the possibility that the world has passed peak oil demand. As TRIG points out, there's too many moving pieces to know with certainty. So the best I can do is sell what seems to me a crowded trade and buy value.