Ron2008

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    • Tue Sep 9th 10:31 AM | Rating: 0 0
      Commented on:
      Remember Those $200 Oil Predictions?
      Rising energy prices is one of the reasons there was a mortgage crunch. You can't separate the two.
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    • Fri May 9th 23:47 PM | Rating: 0 0
      Commented on:
      NYMEX: Speculators Aren't Driving Oil Market
      paulk8756, the Rs were in control of Congress for years. How many offshore and ANWR acres did the Rs open up when they were in control?
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    • Tue Apr 22nd 01:04 AM | Rating: 0 0
      Commented on:
      Why New Oil Price Highs?
      US oil inventory is at the 5 year average. SPR is at all time highs. OPEC has spare capacity.

      Who is being shorted oil?
      View article »
    • Mon Apr 21st 14:03 PM | Rating: 0 0
      Commented on:
      Why New Oil Price Highs?
      "Supply and demand are ALL that matters to the price of oil and BOTH are very inelastic in the case of oil."

      Demand of oil futures contracts by speculators is the reason that oil is at $116. Nobody is beating on OPEC's door because they don't have enough oil right now.

      And if supply will be worse in the future, then why are oil futures in backwardation?
      View article »
    • Mon Apr 21st 13:48 PM | Rating: 0 0
      Commented on:
      Energy Affecting Food Prices
      "Recent gasoline and crude oil inventory numbers came in well below expectations. Unless production is increased this trend will continue. Based on such figures, one has to assume that the global (and US) demand side "stories" are true."

      Gasoline inventories came in low because,
      1. It is normal for inventories to decrease at this time of year.
      2. Gasoline inventories are the highest since 1999.
      3. Refiners are making less because of high inventories and less demand.

      Crude came in low because,
      1. nobody, except the US gov, builds inventory when prices are at record highs.
      2. With lower refinery usage, there is less need for crude.
      3. Weather affecting imports. Mexican ports were closed.

      Right now there isn't a shortage here. OPEC is correct.
      View article »
    • Fri Apr 18th 12:09 PM | Rating: 0 0
      Commented on:
      Gas Prices Rise, but the Industry Approaches Growth Stagnation
      Gasoline inventories are going down because there is less demand and 15 year highs in inventory. But when the futures markets see a lower gas inventory number they raise the price of crude. So the RBOB futures have to go up to keep the crack from being negative. And when the gasoline price goes up in further erodes demand. So the refineries make less gasoline. Which causes inventory to drop. Which causes crude to go higher. Which causes RBOB futures to go higher.

      And so on and so on.

      If the weather is normal this Jun-Jul and there are no major damaging hurricanes, there will be a huge crash in energy prices this August.
      View article »
    • Thu Apr 3rd 10:07 AM | Rating: 0 0
      Commented on:
      Filling Up on Natural Gas
      If NG production is flat and demand is up then why were inventories at the highest levels in history last year?
      View article »
    • Thu Apr 3rd 10:02 AM | Rating: 0 0
      Commented on:
      We've Got Oil
      I get a kick out of the analysts that are pointing to the increased gasoline demand for the week compared to a year ago as a reason to run up RBOB.

      Maybe it was because driving for the Easter holiday was included in this week's report and it wasn't in the year ago report?

      And maybe the gasoline inventories had a large drop because there is over 10% more in inventory than a year ago so there is no reason for refineries to keep making gasoline at their past rates?
      View article »
    • Tue Apr 1st 11:31 AM | Rating: 0 0
      Commented on:
      Natural Gas Weekly Storage Update
      "The fact remains that in May hurricane forecasts will be issued."

      Since the hurricane forecasts have been wrong for 3 years in a row is anybody going to pay attention to them?

      "On a BTU basis, nat. gas is extraordinarily cheap even at that level relative to oil."

      Everybody that could switch from oil products to NG did so a year ago. There won't be any more gain in demand from switching.
      View article »
    • Mon Mar 31st 11:19 AM | Rating: 0 0
      Commented on:
      Get Out of Commodities - Barron's
      "because it is based on supply/demand fundamentals"

      Yea right. Gasoline inventories are at 15 year highs. Demand is dropping. So why are the prices at record highs?

      There is no current shortage of oil. US inventories dropped because businesses followed a normal business practice of reducing inventory when prices go flying higher. Especially when oil futures went into backwardation last July. There is no incentive or reason for them right now for them to put inventories back where they were 2 years ago.

      If OPEC dropped their quotas and prices stayed above $100, there would not be a drop more added to US inventories.
      View article »
    • Thu Feb 28th 10:04 AM | Rating: 0 0
      Commented on:
      OPEC Will Assure Oil Prices Stay in a Reasonable Range
      I have to disagree that OPEC is maintaining prices here.

      US inventories have dropped because it is a normal business practice to limit purchases and work down inventories to minimum levels when the price of its' raw product increase dramatically in price. They then buy their raw product hand to mouth.

      Also the crude futures market went into backwardation last July. Further reducing any incentive to keep excess crude inventory.

      There is no shortage of supply on the market right now. Just a lack of buyers.

      If OPEC removed all quotas tomorrow and the price stayed at $100, US inventories of crude oil would not increase at all.

      Only the US government maintains/builds inventories at record high prices.

      Numerous commodities are at record highs because of increased specualtor investment. OPEC is just along for the ride.

      I also disagree that $90 oil is not hurting the economy. But I won't get into that right now.
      View article »
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