Expecting a build of 800,000 barrels before today’s Department of Energy announcement that 6.7 million had found their way into the inventory has sent crude futures down over 8%. Good thing too, as what this economy certainly doesn’t need at the moment is expensive energy on top of all the other problems we have to cope with.
Maybe Big Auto can leverage the unusually low price of oil into something less than a 50% hammering of sales in the first quarter. (Or maybe not).
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Gasparino just said sh*t on CNBC live!!
Sucky sucky T Boone.
you get paid 11% ROA with no risk to put oil into storage (short the Dec 09 future against it) and then people act surprised that storage is increasing. Morons.
Ford just announced that with low oil prices, they are coming out with the new 23 passenger SUV – the Ford EXPlosion. MPG range is 3-5. Should be a best seller.
@1
Wow I bet that has never happened before-thanks for letting us know.
@3 – no storage in Cushing, floating is expensive, where you storing this?
sh*t happens.
Is this a milkshake thing? Are we dropping straws in Venezuela? Russia? Iraq? your mom?
@ 6 You store the oil in your car, hair care products, moose, gel, combs.
I bet you BlueGold Capital saw this coming a MILE away.
@6, Cushing storage rose by 4.1 MMBbl, but there is still excess capacity there of a few million barrels. Floating storage costs ~ $0.90/Bbl per month. Bloomberg had an article this morning about traders trying to line up 10 more supertankers for storage. Supertankers hold 2.2 MMBbl.
@11, nameplate storage at Cushing may be 34.4MMB or so, but effectively Cushing is full. look at the what the cash diff’s have done. Everything is strong compared to WTI and it’s not due to margins cuz they suck
Russia has cut off Natural Gas to Ukraine and some other countries while there is freezing weather over there.
The USA has great LNG reserves available that could be sold / shipped over there. But much of these reserves are off-limits due to the environmentalists who seem to be fighting for de-industrialization. We all want clean air, water and wilderness; we can have that too. Enough is enough, idiots.
@11 – any remaining Cushing storage is contracted out for the year, so nothing availale there peiod unless you already own it. Also, who’s giving out credit to buy a VLCC these days? You need cash on hand
@11 – any remaining Cushing storage is contracted out for the year, so nothing available there period unless you already own it. Also, who’s giving out credit to buy a VLCC these days? You need cash on hand
@13, WTF r u saying. There’s a nat gas dispute btwn russia and ukraine so the russian’s cut off supply. Europe has been drawing down storage to offset the russian cutoff. Tell me what that has to do with LNG and the environment?
U must have been speaking to urself in ur last sentence
@4 LOL
The SUV market imploded in the first half of 2008 and hasn’t recovered. The second half of 2008 killed the rest of the auto sales, and that’s due to the poor economy. Auto sales will continue to slump no matter what happens to the price of oil in the short term.
@17, if there is no incremental storage to be leased tanks r full.
@19 – HOT OFF THE PRESS
@19 OMG, auto sales r down? next ur going to tell me the equity mkt is down
shit man, i thought this was a bummer free board