Monday, March 13, 2017

From The US Govt File: Buy HIgh, Sell Low -- March 13, 2017

From The Oil & Gas Journal, data points with comments:
  • seven companies awarded contracts for SPR oil
  • 10 million bbls 
  • 10 million bbls = one day's US production
  • tells me how inconsequential the SPR has become (or maybe always was)
  • seven companies, the usual suspects, including Marathon Petroleum, Phillips 66, Valero
  • but also, PetroChina (so, the US sells oil at a very low price to enemy #1; LOL)
  • deliveries to take place May and June (2017)
  • one wonders how much the seven companies are more interested in "contango" than in supply?
Backwardation: immediate demand for oil, certainly we are not in that position now, which means we are in a contango situation, with the potential for huge gains by these seven companies.

*****************************
Pipelines, Pristine Waterways, and Native American Religious Rites

From Twitter:

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.