Oil Prices rises because of offshore stockpiling

[jusali]

I was struck by this article: http://news.bbc.co.uk/1/hi/business/8210864.stm


In particular this statement

Analysts had expected supplies to grow in the week to 14 August.

They added that the drop in imports may have been caused by firms holding more oil in tankers offshore and waiting for higher prices before importing the extra crude.

Surely this is racketeering which of course is absolutely fine why not, the banks are doing it

 

[Lemon Eddy]

Surely this is racketeering which of course is absolutely fine why not, the banks are doing it

How the hell can it be racketeering for the companies that own the oil to wait until the price goes up before they sell it? It's their asset, they get to choose when they go to market with it.

 

[rover07]

Should i sell my oil stocks now or wait awhile?

 

[Cobbles]

I was struck by this article: http://news.bbc.co.uk/1/hi/business/8210864.stm


In particular this statement



Surely this is racketeering which of course is absolutely fine why not, the banks are doing it

No, the true racketeering is the amount of taxation that's lumped on top of the price of a gallon (plus the VAT shat on top of the fuel duty - a tax on a tax),

When the recession started, the Polish premier decided to provide lower levels of fuel taxation to stimulate their economy.

Go on Gordo, give it a go - rape some other end of the economy, like those who insist on drinking planet raping bottles of eau de poseur - whack on a quid a bottle as an "environmental levy".

 

[Bob_the_lost]

No, the true racketeering is the amount of taxation that's lumped on top of the price of a gallon (plus the VAT shat on top of the fuel duty - a tax on a tax),

When the recession started, the Polish premier decided to provide lower levels of fuel taxation to stimulate their economy.

Go on Gordo, give it a go - rape some other end of the economy, like those who insist on drinking planet raping bottles of eau de poseur - whack on a quid a bottle as an "environmental levy".

One does not preclude the other my dim friend.

 

[Lemon Eddy]

No, the true racketeering is the amount of taxation that's lumped on top of the price of a gallon (plus the VAT shat on top of the fuel duty - a tax on a tax)

I love fuel tax, truly I do. If anything, it'd be rather good if they chucked an extra 30p on per litre. On the rare occasions I do drive, I like to have the roads nice and quiet.

 

[ExtraRefined]

I love fuel tax, truly I do. If anything, it'd be rather good if they chucked an extra 30p on per litre. On the rare occasions I do drive, I like to have the roads nice and quiet.

Only if they tax electricity at 10p a unit too. And spend the money on nuclear bombs.

 

[not-bono-ever]

there is a shit laod od unwanted ships lying about due the collapse of trade in the last year - all need to be crewed and maintaned anyway - keeping them hanging around, full of crude, for a few extra dollars a barrell can make a huge difference to profits

 

[Puffer]

This is due to the difference in price between spot oil (oil for delivery now) and the futures contracts, the futures price was higher so companies with the resources to charter vessels, purchase large volumes etc. could sell the futures contract and buy the spot physical oil. The oil sits and waits until the futures contract expires at which time the oil is delivered.

The profit is locked in from day 1