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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (73420)	4/21/2011 5:08:13 AM
From: elmatador	Respond to of 217545

Why "Chinese oil giant Sinopec has stopped exporting oil products to maintain domestic supplies amid disruption concerns caused by Middle East unrest and Japan's earthquake, a report said Wednesday. China has two objectives. First: Guarantee oil supply without being hired gun. “The United States spends around $40 billion to $50 billion per year to protect the free flow of oil from the Persian Gulf to the global economy, more than the entire defense budgets of all but a few countries. China, by comparison, spends virtually nothing on Gulf security, while pursuing its strategy of building political and economic relations with oil-rich countries in order to secure oil for its growing economy. This is nowhere more apparent than in China's relations with Saudi Arabia, the world's biggest oil power. Beijing's focus on the Persian Gulf began in earnest in 1978, when it implemented the "Reform and Opening Up" policy, aimed at modernizing the Chinese economy. The policy's objectives made secure access to Middle East oil and good relations with oil-rich countries critical. Saudi Arabia figured prominently into China's plans, and over time, bilateral relations gradually improved. As multiyear data gathered from the Chinese Customs Statistical Yearbook shows, Sino-Saudi trade grew 6,000-fold from 1978-2003.” For that to happen China needs to tightly couple its oil business with the exporting country. See Saudi Arabia business couplings.. In March it agreed to work with state-owned Saudi Arabian Oil Co., or Saudi Aramco, in building a 400,000-barrel-a-day refinery on the Red Sea coast. online.wsj.com Riyadh's ties to China are expanding beyond the oil trade and deepening in the area of refining operations. Saudi Aramco, the national oil company, is partnering with the China National Petroleum Corporation to build a new refinery in China's Yunnan.

To: TobagoJack who wrote (73420)	4/21/2011 5:13:22 AM
From: elmatador	Respond to of 217545

Second reason China cuts oil products exports. Give recalcitrant exporters whose refineries are om hold. Capacity Growth To Slow As Sonangol Struggles To Secure Refining Partner China's state-run Sinopec pulled out in 2007. State-run Indian Oil Corporation (IOC) in early-2010 offered to help build the refinery, but no apparent progress has been made and Fonseca's comments indicate that no deal with IOC has been finalised. . oilandgasinsight.com Such cases will be reolved as the flow of oil products from China is going to slow or even stop. That will prompt a wuick solution and refinery will be built on record time. As you know China must sell projects and these proejcts are necessary to start. But rememebr First reason: must tightly couple China economy with Oil exporting countries economy. Don't worry Tj in this thread we know everything...

To: TobagoJack who wrote (73420)	4/21/2011 5:49:34 AM
From: Maurice Winn	2 Recommendations Respond to of 217545

Oil crisis? Ho hum, plus ca change... seen it all before. Put the price up and the problem goes away. People can buy a bicycle. Move closer to work. User cyberspace more, both fixed and mobile. Wear warm clothes. Move to the tropics. Rent the dirty great SUV as accommodation and buy a dinky little car. Mqurice

To: TobagoJack who wrote (73420)	4/21/2011 7:55:02 AM
From: carranza2	Respond to of 217545

The reasoning in this bullish-for-gold comment is so obvious as to be invisible, but still probably true. It was utterly ignored by Hussman in his 'must read twice' comment; politics cannot be ignored [N.B.: Hussman IMO has lived too long in a rarefied ivory tower.]: bloomberg.com The Federal Reserve can be counted on to keep its balance sheet big and interest rates low if President Barack Obama and Republican lawmakers agree on a multi-year deal to slash the $1.4 trillion budget deficit. That’s the message from the Treasury bond market, where yields on 10-year securities sank to their lowest level in almost a month this week on speculation that government budget cuts will slow the economy and encourage the Fed to hold off from raising borrowing costs, said Mohamed El-Erian, chief executive officer of Pacific Investment Management Co. “The more fiscal austerity you get, the more likely that the Fed will stay on hold for longer,” El-Erian, whose Newport Beach, California-based company runs the world’s biggest bond fund, said in an April 19 interview on Bloomberg Radio’s “Surveillance” with Tom Keene.

To: TobagoJack who wrote (73420)	4/21/2011 3:24:26 PM
From: 2MAR$	Read Replies (3) \| Respond to of 217545

Translation: Shit just got real, and is about to manifest itself in limit ups in both regular, and black gold A man with a name TobaggoJack prolly has "long vision" & so do his peers ...longer term this will become a daily headline as China's mission for oil in the ME is threatening US interests & leading to heightened tensions , especially with growing involvement of China's energy sector in a number of ''problem" states Iran, Sudan and lately, Syria . There will come a time when we'll pine for the halcyon salad days of Gilligan's Island & the Beverly Hillbilly's ...which which the reruns of will be back en Vogue globally ;o) Yet Goldman advising peeps to get out of the trade just a week ago ...for the near term: Goldman bailing out of commodities? Last Updated on Wednesday, 20 April 2011 01:54 megatraderforex.com Written by MegatraderFX Tuesday, 12 April 2011 11:31 Large movements in the commodity markets today were initially driven by Goldman Sachs as they advised clients to cash out of oil which contributed to futures slipping nearly 3 %. So is Goldman advising clients to take profits as they see the near term risk reward no longer favors being long? Goldman's is focused in the near-term and could suggest the commodities bull market is running out of steam, this could be aided by the high levels of speculative bullish positions in the oil market. Based on this speculative trade any combination of bearish factors could lead to a massive unwinding of positions and a very harsh retreat in prices. Could Goldman be looking to push commodity prices down in the short term and then re-position back in at lower levels? They are positive on long term prices so is this just a overall book resetting trade? Falling commodity prices will result from a stronger US dollar and the movement across commodities mirror the movement in currencies. There are now signs of falling oil demand in the US and with a pottential peace agreement in Libya and less chaos in the global oil supply and this will certainly help reduce the upside in the short term. Most countries would welcome a pullback in the crude price which would offer some much needed relief. Goldman's position in the commodity markets will become more accountable on April 19 when the firm releases first quarter earnings. Goldman's Value-at-Risk (VaR) indicator for commodities will show the firms position and risk for these sectors. Previous VaR numbers showed caution in the final quarter of 2010, Goldman posted its quarterly results on January 19 and commodities trading risk hit a near seven-year low which could suggest the firm had reigned in it's risk of oil, metals and grains prices. Goldman's VaR for commodities stood at $23 million for the fourth quarter ended December 31. That was down 20 % from the $29 million in the third quarter and almost 40 % lower than the $38 million seen a year earlier Large movements in the commodity markets today were initially driven by Goldman Sachs as they advised clients to cash out of oil which contributed to futures slipping nearly 3 %. So is Goldman advising clients to take profits as they see the near term risk reward no longer favors being long? Goldman's is focused in the near-term and could suggest the commodities bull market is running out of steam, this could be aided by the high levels of speculative bullish positions in the oil market. Based on this speculative trade any combination of bearish factors could lead to a massive unwinding of positions and a very harsh retreat in prices. Could Goldman be looking to push commodity prices down in the short term and then re-position back in at lower levels? They are positive on long term prices so is this just a overall book resetting trade? Falling commodity prices will result from a stronger US dollar and the movement across commodities mirror the movement in currencies. There are now signs of falling oil demand in the US and with a pottential peace agreement in Libya and less chaos in the global oil supply and this will certainly help reduce the upside in the short term. Most countries would welcome a pullback in the crude price which would offer some much needed relief. Goldman's position in the commodity markets will become more accountable on April 19 when the firm releases first quarter earnings. Goldman's Value-at-Risk (VaR) indicator for commodities will show the firms position and risk for these sectors. Previous VaR numbers showed caution in the final quarter of 2010, Goldman posted its quarterly results on January 19 and commodities trading risk hit a near seven-year low which could suggest the firm had reigned in it's risk of oil, metals and grains prices. Goldman's VaR for commodities stood at $23 million for the fourth quarter ended December 31. That was down 20 % from the $29 million in the third quarter and almost 40 % lower than the $38 million seen a year earlier.