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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Louis Pastiche who wrote (18495)	6/24/2011 1:54:45 AM
From: ahhaha	Read Replies (1) \| Respond to of 24758

SPR is a doable pseudo-stimulus. No more stimulus than QE2. Maybe you didn't understand what I meant when I stated that crude has a fully global market. By that I meant that crude produced in any country can end up being consumed in any other. Whereas SPR crude has a predetermined route through American distribution any barrel can be considered as merely displacing some other barrel from elsewhere. The marginal barrel moves towards the best offer wherever across the globe that might occur. Does that marginal barrel pile up at some place like Rotterdam? It doesn't. This has been what's peculiar about the state of the crude market over the last 6 months. Marginal demand exceeds marginal supply, but total supply way dominates total demand. It's as though some large buyer believes that future crude price will rise substantially and so is building inventory. The influence of such a buyer isn't large enough to affect the overall market, but it is large enough to create the impression in the sensitive indicators that crude is short, and thereby results in NYMEX traders asking away with plenty of takers.