If your holding onto your High Dollar petro stocks. You want to read this.

Me thinks you are confusing stocks with commodities trading. Two different things.

Hey, if you can't beat them, join them.  When "they" buy commodities, you buy commodities.  When "they" sell their crude contracts, you sell your crude contracts.

I can't quite understand why "they" would want to drop the price whenever they want, but apparently, per Tkozy, they do...

  "Your investments are in their hands. Prices will spike and drop when they wish them too."

Yeah, prices tanked last year because the speculators wanted to lose money. Cratering demand had nothing to do with it. 

BTW: If so many tankers are supposed to be unavailable for transport because of use as storage containers, then why are tanker shipping rates at historic lows? Tanker shipping rates have fallen by 50% since March. Oh yeah, it must be evil speculators controlling the tanker supply.

Don,

Tankers used as storage are not recorded as tankers in shipment.

Also, Crude stored at sea is not included in the EIA petro report.

Please read:

OSLO, Aug 28 (Reuters) - Frontline, the world's biggest independent oil tanker shipping group, said it estimated that 40 to 45 very large crude carriers (VLCCs), or around 10 percent of the world fleet, were storing crude oil.

Frontline had told Reuters on Aug. 6 that around 50 VLCCs were being used to store around 100 million barrels of oil, down from a peak of around 60 VLCCs in April.

From:

http://www.reuters.com/arti...

Ekccon;

I am not confussing anything. When the price of a commodity goes up. Many people run to a related corporate stock to invest.  Lets take Nabors for example. It has been as low as 8 Bucks back when the price of crude was at below $50. It is now up above $21 bucks.

If a person didn't believe that the price of 70 bucks per barrel was going to bring more drilling. Why would Nabors stock almost triple?

That's the connection between commodities and  stocks.

The point of my post? The 70 bucks isn't going to hold. Even with a disaster. There is plenty of production available and over 6 million barrels a day of reserve capacity..  

No big rush for a lot of drilling. Oxy might do a few exploratory wells in their new field. But They seem to be holding the new tight field close to their chest. Why would anybody expect them to drill there anytime soon. An what's a well or two. Do you suppose that's worth  a tripling of the Nabors stock?

Sooooooooo. Get rid of your petro stocks while you can get 21 bucks a share. Or you'll be in the tank with the commodities speculators.

mexico,

We have gone over this before. The speculators are gamblers. They would bet burritos on a bull ride if that's all they had.  They had  every way to lose by not holding up the price, by buying more contracts, so they did just that.

Katrina has created a rallying point. Bet for a disaster.

Hoping to support the price until a disaster hit hasn't worked out so well.. 

It didn't happen last year. And they lost big time.  

And we are over half way thought this season with nothing in the predictions.

The other  thing to realize about a major hurricane. Is that it destroys demand and in the case of Katrina it actually had the effect of sink over 500,000 vehicles out to sea. (buses, forklifts, boats, ships, cars, lawn mowers etc). The refineries were only offline for a short time. The demand was permanently lost.

It's a complicated world out there mexico.

Especially if you are not paying attention.. 

On top of all of this. Almost everyone expects the economy to take another dip. Construction loans may falter worse than the mortgage loans. Bank failures are expected to increase considerably. Credit cards have a miserable failure rate.

mexico, you don't have to take my advice. You didn't take it last year either.

But I offer anyway.

Sleep tight.

interesting tkozy....thanks for the information

Thanks learn,

I can't see a recovery from this recession until something is done about the speculators. (They are different from those that are hedging their purchases).

Commodities contracts are going to have to be restricted to those that actually will receive delivery of the product before they resell the commodity.

Unless this is done. The commodities prices will inflate beyond reality again. And drive us into a deeper recession than we are in today.

But this time. People will be afraid to do anything but pay rent and stock the pantry. The recession that  would follow another commodities spike will cause unbelievable damage to the world economy.

It was the spike in ALL commodities that put us in this recession. The housing bubble was a problem. But the commodities prices put us over the top.

They hurt everyone. Not just those that got caught up in the housing bubble. They broke the bank of even the most frugal American. They affected everyone in their everyday living. No one could escape the rising prices of food and energy.