ship shape and bristol fashion

Options Trader: Friday Outlook

BTW, not even your left wing friend Paul Krugman thinks it's a bubble.

Options Trader: Friday Outlook

Believe what you want. If you invest the way you talk, you didn't make any money when it comes to energy. I did the last three years.

My numbers are from the IEA, I copied it from an article on Rightside advisors.

There is a lot of sour crude around, yes. That's why the Saudis for example have cut their prices for it.

Sweet grades on the other hand are scarce. Since NYMEX Light Sweet Crude WTI is basket of sweet grades, NYMEX crude is expensive.

Thanx to environmental legislation, gas and diesel is required to have less and less sulfur in them. I know you don't believe it, but refineries are old, everybody but you knows this, and therefore refiners need low sulfur crude - the light sweet stuff.

Check the EIA numbers, since you trust them.

tonto.eia.doe.gov/oog/...

Cushing, OK is what matters, when it comes to WTI. Believe me that's how it is. When you check the link, you can see that inventories are down by a quarter or so compared to last year. Right? And now consider the fall of the dollar within the last year and you're almost there.

Don't get me wrong. I know that oil has gotten ahead of itself, yea. Last week was the capitulation of the bears with a powerful short covering rally upon Wednesday's inventory data. I guess it's gonna go down from here. But I don't think it will fall much under the 100$ mark.

If you want WTI to come down, You have got to be for more drilling here in the US. 85% of our coastline are unexplored. We do not know if there is nothing out there or if there is the biggest oil field ever out there.

Congress and You are busy witch hunting. This will accomplish nothing.

Anyway, chinese cars need gas, too. And the one who can afford it, are the ones who gonna get it. Period.

Instead of holding hearings Washington should act by opening up the OCS. Down in Florida they have no problem pumping sewage into the ocean, but they have a problem with oil production.

Instead of complaining consumers should conserve. There is no reason why average joes here need 6 and 8 cylinders, while average joes elsewhere drive 1.6l 4 cylinders.

Options Trader: Friday Outlook

Enter your comment hereRussia saw crude production fall nearly 4% in Q1. Mexico lost nearly 5%, Venezuela -5%, Nigeria -5%. Over a dozen countries saw production fall more than 2%. Only 2 countries saw production increase by a material amount, Saudi Arabia and Angola.

Oil won't come down.

Options Trader: Friday Outlook

People lining up before gas stations before a price hike. Yes that is sufficient evidence for me to say that oil demand will drop after the price hike.

Mr Davis do you really believe what you write? And if you really believe what you write you must have a very narrow vision. It is time to realize, that the Chinese have huge savings rates. We do not. In other words they can afford it. We do not. Because we are busy complaining instead of getting more efficient.