The 20 Million Drawdown in a sluggish economy
The last two weeks oil inventories fell by a record 20 million barrels, this event has never happened in 30 years of historical data. So what the heck is going on here? It is not the case that this is the best economy in the last 30 years. It sure isn`t the case that Americans are using more fuel right now compared with any other time period during the last 30 years.
Peak Demand Era
In fact, the US market is maturing and using less fuel these days for several reasons like alternative energy, higher fuel efficiencies, fuel blending requirements, and a struggling economy with the highest rate of population on food stamps.
Supplies at Record Highs
Sure refiners are running at their highest rate of the year in the 92% range, but that is all normal for this time of the year. Yet this two week drawdown has never happened before, and curiously it happened as supplies were at record highs.
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1 comment:
Don't bother to read the lie, it's price fixing (pooling/collusion, an antitrust criminal act) by all major oil companies. They've sat down and agreed to not sell under a certain amount at the pump and to supply no more than necessary to keep it there for as long as they can get away with it. Then all major oil companies gets to pay investors hugh profits of your money. That's why major oil companies forced all of their used to be owner/operators out of business back in the 1980's by overcharging for the product that they controlled. Small jobbers couldn't buy product on the spot market, like unbranded sellers could, even though it was cheaper than the branded product, because major oil only allows branded product to be sold under their brand name. Major oil used the excuse that the cost to deliver was to high. Lie! Eventually every small owner caved (went belly up) and major oil companies took over their old store, which was the intent from the beginning. Then they further conspired and were allowed to form even bigger companies for easy price fixing. The gas and go convenience stores today are supplied by the over production by the major oil refineries, at a rate just under branded product, for the excess that the major refineries produce and can't hold for lack of storage. It's controlled (prices at the pump) from top to bottom and the federal government says nothing. They want those taxes at the pump. The prices fluctuate every day in a hollow attempt to convince users (you & I) that there's a real open market on petrolium. There is no real market, just flow control by the majors. The price otherwise today would be around a buck a gallon. Until there is a complete collapse of the whole monetary/economic system, when no one has any bread, no can afford fuel, only then will free market return. Won't matter at that point anyway.
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