Oil Exploration and Production companies often buy up future commodity contracts to lock in profits and protect against falling prices.The oil must be delivered at a future date to satisfy the contract.Price stability is ensured against downward oil price swings by these "hedge bets". If the future price
grows" too much some of the hedges would be sold. measured hedges would be bought and sold to keep an equilibrium proportional to the company's future and current production.This ensures that the company can survive price volatility better than fretful investors.
The Euro and Yen have been deliberately devalued (vs dollar).Canada, Australia, new Zealand, Brazil,and Russia are also devaluating their currency to compensate for falling exports ( oil trades in dollars on stock exchanges).i could not post for almost one month..again ! does any of this controversial statment hurt somebodies feelings?? So long, I'm off to Fergusion for a bar -b- que.
patr of being in the stock market is realizing that whatever makes stocks advance ;can also reverse and back the whole thing up for a few months-to restart and relive the previous ralley. The main losers are whoever sells and goes back into the safety of lame investments like bonds. Stick to your guns , folks...Obama isnt coming to the rescue.
For the 1st time in 8 years Alaska has sent condensate (ultralite crude) to Korea instead of the West Coast.Alaska is butting heads with the Saudi s' and getting into their markets.It isnt legal for the USA to export crude, exc 4 condensate which is natural.Calif has 3 big heavy crude refineries and they are getting oil by rail. read this on Bloomberg.
well the high bond yields show that the currency is being debased.Argentina is ruining the value of its economy to make exports cheaper relative to neighboring countries, and inports expensive.sort of like reverse competition to get downgraded and run against other losers instead of "real competitors'.I hate shorties and anyone that doesnt try to win....mental flip flops that lerk in the shadows.
Well you have got that right.Any money that goes into Mexico is going to stay there.Venezuela is negociated a payment to Exxon .Argentina settle for a fraction with respol.The nationalization this vasilates back and forth.The Universities are almost as bad a "Ha vahd" (N.E. accent) because they are full of leftist idealogues.
National Resourcism is dead and the trend is toward adding incentives to keep exploration and production in those sqalid little countries.Even Mexico is letting the Dammed Gingros back in way past Tijuana ,and beyond, to upgrade the 1020 tecnología de petróleo.The days are over when one man and a burro could make a difference.
In the business cycle there are periods of expansion and contraction. Long positions and short positions will overshoot their intended targets, but soon revert back to the mean.These are normal occurrances and should not be accompanied by all these histerical rantings and terror stricken dramatics.Can we tone down the emotion postings ? I would not like to be ride in an elevator with some of you people.
US Dollar index has expanded 9.8% since May 14 (longest run in Hx). Strong dollar means cheaper commodies (oil).The dollar is far overbought with quantative easing pumping extra dollars into the system.Oil production is up in the US, Opec has the highest production since Aug 13, Russian and Venezula are producing as much as they can.The overbought strong dollar and excess world production of oil have depressed this stock and it is by far oversold and a good buy at this point . Oil prices could trend lower so buy in in increments every 2 weeks or so. This will take several months to turn around , unless 1)some good news comes out which is a problem since the IR dept seldom releases anything in a timely manner.2) dollar index reverses and maybe $ goes back into energy and gold .On the bright side; the US dollar has beaten up on every country that bet on a 'basket of currencies' to move away from the Dollar.