"s_knight8"
wrote in
news:d5fvih$ snipped-for-privacy@dispatch.concentric.net:
>
>> consolidate in a
>> sideways pattern if not add to those recent gains.
>
>
>in celebration of rosseroo 's robot reporter's glitch on Monday, I'll
>participate in this thread with a limited number of keystrokes
>
>I concur with the sideways analysis of the major indices
>>
>> The ball and chain for this market is the price of oil, which is
>> heading higher this morning. Crude is up 65 cents to $51.48 per
>> barrel. It seems traders are ignoring the recent supply build because
>> the long-term dynamics of the demand curve favor higher prices. As it
>> is, we continue to recommend a strong portfolio weighting in energy >> stocks.
>>
>The administration's has been buying crude and replenishing the strategic
>oil reserves all during crude's historic price rise. This volume has been
>part of the overall American "demand" for crude. At this price peak we
>have a supply buildup. Our oil men leaders need not pump out any strtegic
>reserves to affect supply and prices, merely curtail the rate of crude
>being dumped into the strategic supply
Okay, let's look at the numbers:
Amount of oil consumption worldwide: 56 million barrels per day Amount of China's oil consumtion: 6 million barrels per day ANNUAL Rate of growth of China's oil : +0.5 million bpd Amount flowing into strategic reserve: 0.1 million bpd
Anyone who thinks that is going to make a lick of difference is dreaming in Technicolor®. If prices are going up, it will just put off the increases for a matter of weeks or months. If they are going down, it won't make much difference either.