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Only a few months ago, traders and investors were fretting about a shortage of crude oil. Now,...

Only a few months ago, traders and investors were fretting about a shortage of crude oil. Now, many are worried there may be too much crude at a time when economic reality is causing demand to contract, sending crude prices dropping fast. But skeptics note that there still aren't enough pipelines to bring all the increased production to refineries along the coast, limiting the impact of rising supplies.
Comments (3)
  • "But skeptics note that there still aren't enough pipelines to bring all the increased production to refineries along the coast, limiting the impact of rising supplies."

     

    Not to worry--the Exxon Valdez has been retrofitted and is ready for action--oh--and the captain has already done his time and is willing to make the voyage.

     

    "Why do all the greens make things so black and brown?"
    -- Kingston Trio (from "Where Have all the Flowers Gone?)
    25 Oct 2012, 10:33 AM Reply Like
  • That WTI-Brent spread will remain wide for another few years, at least. Once all the oil coming out of Canada and ND can reach the coasts, it should help the tanker industry soak up some supply. It may be time to start looking at which names will survive until then in that industry.
    25 Oct 2012, 11:39 AM Reply Like
  • Administration putting up new leases for sale in the Gulf:

     

    http://bit.ly/TiYo1G

     

    US demand meanwhile is collapsing, this year's demand looks to continue the trend at an increasing pace. Oil prices just aren't realistic, especially given that even with Iranian oil off the market there is no supply constraint.
    25 Oct 2012, 06:38 PM Reply Like
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