Good old goldman sachs

[nicolas10]

http://www.dailymail.co.uk/news/article ... aring.html

Discuss

[callmeslick]

not quite sure where Goldman's come in here, but the article speaks to routine business in the world of commodities. Folks keep grain in elevators, livestock on feedlots, oil in storage(tanker ships or landbased
tanks), hoping that the cost of storage is offset by a rise in prices. In this case $40/barrel crude prices put a lot of oil in storage. Conventional storage was overflowing over here in the US by early summer, and large tanker ships are the next option. Winter is coming, dontcha know.

[nicolas10]

The mother of all speculators.

They put to good use the US gvt bailouts

Buy!
Buy what?
Buy carbon credits!
Not avail yet!
Buy something else!
We screwed the market chief!
Buy commodities then!
What about oil?
Sweet!

Here's the oil bubble in a nutshell. Demand is at a historic low due to the crisis yet prices at the pump keep going up.

Nic

[callmeslick]

demand is at a historic low?? Worldwide?? Care to back that claim up with numbers?

[nicolas10]

Well historic low in recent years... you get my drift.

http://scarcewhales.blogspot.com/2009/0 ... emand.html

N

[callmeslick]

bear in mind, nic, that China never even went into recession, and India barely did. Those two alone promise so much downstream pressure on oil demand that speculators(yes, that ugly word) are going to be willing to sit on oil for a while, and futures prices will keep sneaking up.

[nicolas10]

True those didn't go in recession, but the overall world demand went down quite a bit.

Besides oil isn't the only commodity that's being used to speculate. Heck they have to squeeze every single $ they can before the shit really hits the fan, which should happen within 2~10 years.

Nic