Keep Scratching

I'm waiting for oil to go back up to about $120, $125. Reuters is reporting that BHP Billiton expects 10% production growth over the next 12 months, even as China slows. This is more news that the commodity bubble has popped. BHP even went so far as to say, "it was in good shape to weather a downturn in the commodities cycle."




Sounds like they're expecting one. Who else is?





Let's look at VLCC tanker rates on Intertanko. They've dropped 95% in the past few weeks. At the same time, US stockpiles of oil were up last week (more than expected). Can anyone put two and two together?

Whooa! Look at that jump! Where did all that oil come from? And why are there so many tankers out there all of a sudden? (Poten and Partners is reporting that tankers available in the next 30 days has gone from 60 to 90 in the past couple of weeks.) I can't figure it out. It's all too complicated. (Smirk).