That is a link to the article . Here is what I don't Get in the article...
"Nationwide, U.S. crude-oil stockpiles are at their highest since December, and inventories at Cushing have risen for eight straight weeks, putting the amount of oil in storage at the hub at 29% above year-earlier levels."
"It was just last week that crude oil hit an 18-month highs $87.15 a barrel. Since then concerns about the impact of Europe's debt woes on global growth and a broad aversion to risky assets have shaved more than $13 off futures prices."
Seriously , what the heck.
So this journalist is telling me that Crude inventories have been rising for the past 8 weeks and the market didn't care about rising inventories and kept bidding up the price of crude as it hit a high for the year last week. Now all of the sudden the market cares about rising crude oil inventories because of the EU situation??
I'm a buyer of this dip in crude oil. The market hasn't cared about rising inventories for the past 8 weeks(and for all of 2009), and when this sell off is over the market will go right back to not caring about rising crude inventories and oil prices will rise again.
Am I missing something here, short of the EU going into a double dip recession, EU demand for oil won't diminish that much in my opinion. I'm thinking the author of this article must have shorted oil recently and needs oil futures to go down more.
I'd like to thank him for giving me good oil stocks on the cheap, that are sure to benefit from recovering USA consumption and increases in China and emerging markets consumption.
Maybe I'm missing the point of his article.
What the heck???
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