Location: Pantego, Texas, United States

Thursday, December 04, 2008

I hear on TV that the CONTANGO is out of whack. I'm not clear on what the CONTANGO is, but it has something to do with storage of oil. A lot of oil is produced from marginal wells that cannot be shut off because they may not start up again, at least without a lot of costly rework. So the producers keep the wells running, and store the oil. They buy old oil tankers and fill them up with oil to hold it in storage. Back when the price of oil was running up toward $150 per barrel speculators were buying oil and storing it to reduce supply. It worked great for a while. But now the demand has fallen and all of the old tankers are full of oil. So, now supply has outstripped demand and the price is falling, a lot. Some on Wall Street are predicting that the price of oil will fall to $25 per barrel.I don't believe in coincidence, so I don't think it was an accident that the price of oil went up so much early last year. I suspect that the master manipulator George Soros had something to do with it as part of his efforts to defeat Republicans and establish the fascist state that he desires. I also think it was no coincidence that the stock market crashed on 15 September. The crash seemed inevitable, but it is curious that it was timed to aid Democrats in the election. I suspect Soros and other rich Democrats in that one also.


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