On Mon, 7 Jun 2010 12:37:05 -0700 (PDT), Tim
wrote:

Soemthign doesn't make sense to me. with all the 'bubblin' crude
threatening the gulf of mexico, the price of oil sems to be dropping
instead of ging higher. over what, 33million gallons of crude wasted
in the water not counting multi billions in damages, you'd think that
those millions of gallons of oil being lost out of the world market
would cause a rise in price, but it seems the oposite. over the
weekend there was an approx. $3.50 drop in crude.
Same way as when the Alaskan pipeline was closed.

I like the lower pricing for everyne involved especially when I take
the boat[s] out, but something is really wierd about the supposed
'price and demand' theory.


What gives?

There is a big inventory of oil in storage that was bought in the
futures market in the hope that prices would rise. Prices have been
stable to down however because of soft demand/economic turmoil. Now
the inventory has to be worked off to avoid long term storage costs.