*contango means prices moving forward (UP) and VLCC means Very Large Cargo Container
If the Dollar wasn't inching it's way back to health I might agree. But strong dollar means lower commodities prices means lower stock prices means run to treasuries means lower yields on 10Yr means save the mortgage market I mean Freddie, Fannie and Ginnie Mae too from bankruptcy along side millions or should I say trillion dollar debt holders those good ole american fools who think the recession is over it just missed me, say it ain't so please Mr. Cramer Crudlow and all you nice folks from CNBC.....
Will it be a repeat of $38 oil? Just think, in 2001 the price for a barrel of oil was $10.00. That's right folks, TEN DOLLARS a barrel. You still think we had enough demand to drive it to $148 in just 7 years? You still think we don't have speculation? Oil demand is so low it's not even funny. Supplies are up all around the world. Worldwide recession and YET....oil is at $70. Hummmmmmm....smells a little funny to me. So oil at $38 and then driven up almost 50% on no demand and oversupply. GS, JPM, MS et al, had RECORD TRADING PROFITS.......
I think $38 before $148...want to place a wager? Fed wins you lose?
Oil contango boosts crude storage at sea-sources
ICAP Shipping estimated 29 VLCCs were storing crude globally, rising from 24 VLCCs two weeks ago. It estimated that 10 VLCCs were holding crude in the U.S. Gulf, 10 off the coast of Northwest Europe, seven off West Africa, one in the Mediterranean and one in the Far East.
Frontline (FRO.OL), the world's biggest independent oil tanker shipping group, told Reuters on Thursday around 50 VLCCs were storing crude oil, particularly in the U.S. Gulf and off Europe. [ID:nL6230518]
A crude oil trader at a large independent trading house estimated between 70 million and 100 million barrels of crude were stored globally.
Swelling onshore inventories in the U.S. may also be pushing more crude offshore, shipping sources said. Stock levels at Cushing, Oklahoma, the world's largest onshore commercial oil storage hub, have risen in six consecutive weeks. reuters.com