RE:RE:RE:KelvinWell CB69, I have to thank you and some others for helping me filter out the useless posters here whom I've ignored. I've been receiving private messages telling me that they've done the same. The audience that reads the their posts are shrinking. Most people who come to these boards don't post yet come here to learn something new. Some information is very valuable. For example someone posted yesterday that Cushing, Oklahoma is down to about 22 million barrels. On our investors group on messenger we followed up. Cushing is down to 21,958,000 barrels or less than 25% capacity.
Anybody who has worked in oil storage knows that solids and heavier stuff like asphaltene in oil decants (settles) over time if the oil sits still without stirring it. Those tanks at Cushing must have a pile of asphalt-like sludge at the bottom of the tanks. Cushing reports that they are down to minimum pumpable levels. So what do we have there? 22 million barrels of asphalt?
If yes, then Cushing doesn't have much deliverable oil. Nymex futures use the Cushing hub as the basis for futures pricing. No wonder that oil prices are going up. One commentator in our group suggested that the growing scarcity will drive gasoline and diesel prices up, triggering yet more inflation. He noted that the Fed now has no control of inflation because they can't fix oil scarcity driven inflation with monetary policy. In other words inflation is out of control.
The Saudis can bring down inflation by pumping more oil but they're not doing it. Why not? This leads to theories about the geopolitical dynamics ocurring in the world. The US would love to bring the oil price down in order to bring inflation down but they can't do it. Canada could have easily helped had they not cancelled Keystone pipeline. So now we're getting into domestic energy policy. Biden and Trudeau are anti-hydrocarbon. In fact, Trudeau openly stated that he wants to "obsolete" the hydrocarbon industry.
Anyway, one can connect the dots between the chain of cause and effect because the effect of one cause, causes other effects which in turn cause other effects in a chain of events that end up with inflation going up, causing interest rates to go up, causing mortgage rates and rents to go up causing a crisis problem with tent cities in Toronto parks.
So that one little piece of info about Cushing inventory levels can be projected into the future in order to predict what is likely to happen. Anyway, just put them on ignore, since we can't block. They add nothing to this board.