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 : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (37169)	2/10/1999 12:21:00 AM
From: Rob Shilling	Read Replies (2) \| Respond to of 95453

George, oil prices have been "spun" for the last 6 months. Now we are sitting on less inventory in the U.S. than last year and oil prices are 4-5 dollars lower. It makes absolutely no sense considering the fact that supply is less than demand today but it was the opposite this time last year. Anyway you slice it there is a 2-6 mbpd world-wide drawdown. The only statistics that can be trusted is the U.S. inventory statistics and the traders have focused on these exclusively. The API stats for the last 6 months could have easily been stacked against oil prices simply by moving oil from other areas of the world into the U.S. Remember the 300 million missing barrels ??? They could easily exist, or more likely, not exist outside of the U.S. There could have easily never been a glut. But there could have been a politically motivated "phatom glut". Now that we have had 2 blow away "above expectation" drawdowns in the API stats this year (15 and 7 million barrels in two separate weeks), and we have massive non-OPEC shut-ins, AND we have colder weather reappearing in the next few days for the second time this winter, I wonder to myself .... why is oil below $12 a barrel ??? The only reason I can come up with is that politics have replaced economics when it comes to oil prices.