Oil prices struggle higher

Reuters ^ | Sep 17, 2006 7:41pm ET | Reuters

[xcamel]

There is a huge glut of both gasoline and fuel oil, reserves are filling up very quickly, natural gas is in the dumps, I'm thinking the $50-55 range is not far away.

[gov_bean_ counter]

struggling to end their steepest slump in more than a decade amid robust winter fuel stocks and easing geopolitical and weather risks to oil supplies.

Strange wording

[Michael Barnes]

strange?

bwahaha,,,

are you surprised in the least? Twisting words is the bizz of the press these days. If it's good for America, it's, well, you know the rest..

[billndin]

The bullish speculators can try to drive up the price all they want but when storage capacity is as close to full as it is now, where is the product going to be stored? A glut is a real possibility. By late November, we could see a complete collapse similar to the collapse of 1998. I hope it does not get that bad because that much of a collapse will sharply curtail production.

[xcamel]

Just a month ago the headline "Oil skyrockets $0.70 on heavy trading..."

Not a peep [in the MSM] about the $13.00 drop in the last 2 weeks.....

[greasepaint]

as soon as the non-movibg tanker ships get filled up,
the price will start to drop

[thackney]

we could see a complete collapse similar to the collapse of 1998

If you really believe that, you do not understand what happened in 1998-99. The bottom fell out of the Asia economies dragging the demand way down. Today we are only seeing a slowing growth but still a good pace of growth.

[thackney]

Tankers are not being held in port. There is more oil on tankers today compared to years ago because there is more oil being exported/imported than every before. Those tankers are carrying product. There has not been a slowdown of imports/exports.

[greasepaint]

I've seen stories that idle tankers
are being used to store crude/product,
cause there is no other place to put it

[SAJ]

I've seen stories that UFOs land on earth each and every day. There are numerous stories that Elvis is still alive.

''Stories''? Don't waste my time. Check supertanker rates instead. They'll tell you exactly how hot the supertanker mkt is.

Sheesh.

[spokeshave]

dead cat bounce

[greasepaint]

since you seem know so much,
what is the crack spread for regular-gasoline these days?

I'd like to know.

[SAJ]

As of ten minutes or so ago, the straight CL-RBOB crack, basis front-month is running 4.625, and, speaking historically, is on its @$$. Note: it is no longer correct analysis to use the CL-RFG crack figs.

The 3-2-1 crack, which many traders prefer to watch, is running 17.592 tonight, basis front-month.

Any other easy questions?

[AFPhys]

$60 by the end of this week.

[AFPhys]

LOL... Great response!

[TWfromTEXAS]

why would someone produce crude and keep it in a high priced tanker rather than just keep it in the ground? no logic in it.

[SAJ]

Geez, how hard is it to figure ANY crack, assuming one has current prices and knows the components of the crack? (shrug)

;^)

[AFPhys]

LOL...

[greasepaint]

depends on the futures market.

at some point, it would pay to hold
on to the stuff on a ship.

I suppose it is possible for there to be a supply
imbalance, with too much crude headed this way