What gasoline crisis?

[contango]

Chevron today saying they're worried about the gasoline supply chain. Products are at the lows of the last five years. Going to be queues at most US forecourts in a week or two, especially once drivers start driving again as prices come down. But the way crude is selling off you'd think refiners aren't bothered. Must be those evil speculators again... Refiners must be loving it!

 

[TWI]

The dislocation between cash markets and paper is so huge it is becoming surreal. The corruption and manipulation as well as the liquidation should be obvious to anybody who has been trading these markets for any length of time. The equity traders are even openly discussing it on the TV these days. Look at the situation we have with shut in in supply from Gustav, refinery capacity shut due IKE, and Opec cut, Nigerian rebels attacking a shell instalation, gasoline rationing in areas of the US. What does that tell you about the price of the future? Why do you think it opened early on Sunday? A nice thin market to get hammered. One thing is for sure, this is the set up for a fantastic opprotunity in commodities. The US has 5.6trillian debt over the next 10 years without counting its domestic commitment, with that the debt spirals to 70 trillian..how long before the foreign buyers of US govi debt lose faith and see that the reality is the only way for he US out of this problem is to print enless amounts of worthless paper. When the confidence in US treasuries fail then we will see hyper inflation and US denominated commodities will rally like you have never seen before.

 

[contango]

Agree. But while the specs are pushing it lower I'm not going to stand in their way. I just wonder what's going to make them start buying again.

Meanwhile I see Citigroup economists saying they now expect a 50bp Fed cut tomorrow....

 

[TWI]

That should do the job, the dollar should tank if they cut. Although in this market it is impossible to relate perceptiona and reality. See right now the $ is all they have left. If the dollar goes then everything goes. It is already a systematic meltdown, we are all pretty much doomed.

 

[contango]

...we are all pretty much doomed.

Yup, apparently the world is coming to an end and we don't need oil anymore! That is, until we realise that in fact the world hasn't ended and we need to fill up our tanks again.