Blood and Oil ...

[Moab]

Just because Egypt and some other Middle East countries are uprising is no reason oil prices should raise world wide ..

The cost of production will remain the same and only oil that may not pass through the Suez Canal will go up in cost of shipping. Yet all of the big producers are on the band wagon BP and it's North Sea operations South America, Mexico, Canada and US domestic ..

This is outright profiteering ..

Little do the big oil people tell you that tankers are sitting full of oil in the Persian Gulf not moving because of the oil glut world wide ..

If it isn't the Banks or Insurance gouging us it's the rich old fat cats swimming in black gold. Yet we have that same old crowd wanting oil further deregulated ..

Shocking how a world in economic crisis puts up with that "same-old-same-old."


February 2011 - RSS Feeds


Storm clouds persist for oil-tanker owners

A collapse in day rates for the world's fleet of crude carriers will be exacerbated this year as a large number of new vessels hits the market, writes Ian Lewis
OIL-TANKER owners face another tough year. With day rates sinking to new lows in the first weeks of 2011, a modest increase in demand forecast for the coming months is unlikely to offset the dampening effect of new tonnage coming on to the market.
The average day rate for very large crude carriers (VLCCs) on the benchmark long-haul route from the Middle East to Japan sank to around $18,500 in December – the lowest December figure for at least a decade – and continued to slide to below $15,000 a day in mid-January. Even the $31,500/d average for 2010 as a whole was a far cry from the heady days of 2008, when owners could expect to receive $85,000/d for VLCCs (see Figure 1).
"Despite the increase in tanker demand we see from this year, as world oil demand picks up, the increase in vessel supply means we still have a ...Click here to continue reading Storm clouds persist for oil-tanker owners

[wabbit]

"This is outright profiteering .."

http://tripolipost.com/articledetail.asp?c=2&i=5418

[spaceboy761]

Eh... not really. As someone who made a living trading oil futures for six months and stock options on oil companies (which pretty much means oil futures options), the prices are more about liquidity than supply. Although the ability to produce it remains changed, the possibility of the Suez closing throws a huge liquidity risk premium on the price of oil. The North Sea just doesn't crank out that much supply as compared to the Middle East. The price should go up.

[wabbit]

A recent development...

http://www.guardian.co.uk/business/2...ated-wikileaks

[billynomates]

Eh... not really. As someone who made a living trading oil futures for six months and stock options on oil companies (which pretty much means oil futures options), the prices are more about liquidity than supply. Although the ability to produce it remains changed, the possibility of the Suez closing throws a huge liquidity risk premium on the price of oil. The North Sea just doesn't crank out that much supply as compared to the Middle East. The price should go up

.

Good reasoning and knowledge, thankyou

[Moab]

Closing the Canal should only effect oil using that as a pipeline.

The US is the 3rd largest oil producer.

Alaska Crude trades lower than light Sweet

Domestic oil produced in the Western States refined at Conoco, SLC or Sinclare refined near Little America WY and does not trade on the world market shouldn't enjoy price increase at the pump because it cost the same to produce and ship not being affected by OPEC trading nations that use the Suez Canal. This should include Argentina, Mexico and Canada the North Sea, Indonesia and the Soviet Union (the worlds second largest producer.)

As we all know oil trading is a scheme plotted by the large brokers and employ people like you to do the trades. You have nothing to do with demand however you did make a profit on your selling high ....