Shhhh don't tell anybody.............

[Joanne98]

Traders Boost Oil Tanker Storage, Morgan Stanley Says (Update1)

April 26, 2010,

April 26 (Bloomberg) -- Traders increased the number of vessels used to store crude oil by 75 percent last week as the potential profit from storage rose, Morgan Stanley said.

There were 21 oil tankers storing dirty products last week, 20 of them very-large crude carriers, up from 12 vessels in the previous week, Ole Slorer, a Morgan Stanley analyst, said in a report yesterday. Among the nine vessels are four in Iran.

About 41 million barrels of oil were stored in the tankers, Morgan Stanley said, enough to meet more than two days of U.S. consumption. That’s up from 24.5 million barrels a week ago.

“Part of the drive for floating storage is attributable to oil traders, taking advantage of the reappearance of a contango over the past few weeks,” Slorer said in the report.

Floating storage employs tankers that would otherwise be used to deliver cargoes. Traders store oil hoping to benefit from a so-called contango structure in futures markets, in which prompt prices are lower than contracts for later delivery. Traders can make money when the difference in prices is greater than the cost to charter the ship.

The contango between the front-month crude contract traded on the New York Mercantile Exchange and the second-month contract rose to $2.01 at 11 a.m. New York time, the highest level since Dec. 15, according to data compiled by Bloomberg. Dirty products usually include crude oil and may include fuel oil.

http://www.businessweek.com/news/2010-04-26/traders-boost-oil-storage-on-tankers-75-morgan-stanley-says.html


The idea to use tankers so suck up the oil is good but as you can see the BANKSTERS have rented them.

The euro/Greece problems are driving down the price of crude so don't expect these tankers to be free anytime soon. Unless somebody pays them BLACKMAIL MONEY!

[eleny]

1. Time to cut back a little more on driving

In other words, ef the bastards.

[Cetacea]

2. Thanks

Recommended

[HCE SuiGeneris]

3. I feel like I've been cut a thousand times and am slowly bleeding to death.

Each headline like this shows just how corrupt the system really is.

[Joanne98]

4. They've been doing this for over a year....

Ever since oil prices crashed in 08.

Market purists will tell you that this is mostly an options play on shippers but that doesn't explain why they've filled the tankers with oil. They could have just parked them empty.

It's oil price manipulation and tanker rent manipulation. Just like everything else they do.

"Let the market decide" I'd like to throw every single conservative in this country into FEMA death camps for just that statement alone.

The corruption is overwhelming.

[HCE SuiGeneris]

5. Even at DU

too much truth gets "disappeared". It seems no one wants to get "too" caught up. It might necessitate lifestyle changes and facing hard realities.

[Joanne98]

6. Yep