Storm Cat

Commodities Volatility Indicate Firming Demand, Rising Prices

Supertanker = 2 MMbbls capacity EACH

Commodities Volatility Indicate Firming Demand, Rising Prices

I almost laughed when I read this story ... the price appreciation we are seeing in crude is nothing more than a technical move ... probably to $55-$56 max... the contango in the market is near historical levels (extremely bearish). Crude inventoroes and approx 33 MMbbls above l;ast yrs levels. Moreover, approx 25 supertankers (2 MMbbls capacity) and being used for storage and 7-10 are in contract for same. Year-on-year demand has dropped 1.55 MMb/d or 7.4%. these are not small issues.

Look at the daily continuation chart. The mkt has dropped from the $147 high last July without any retracement until now. This is a DEAD CAT BOUNCE