WikiLeaks: Saudis Often Warned U.S.

[....lybob]

I thought TPS and Magox might find this interesting.

 

 

 

[TPS]

Here's an article from today's FT, this part in particular:

Cushing has emerged as a sought-after location for the largest oil traders, from big energy groups to Wall Street banks, which have in the past five years built huge tanks to store oil in the city.

 

Capacity has grown from about 30m barrels in 2006 to nearly 60m today, according to Houston consultant Lipow Oil Associates, and is set to rise to more than 75m barrels by the end of 2012.

 

The reason has been a persistent state of “contango”, in which it pays to store oil and sell it at a higher price in future months. “The purpose of having storage as a trader at Cushing is to play to calendar spread. And there’s nothing sinister in that,” says Abudi Zein of Genscape, a consultancy that measures the inventories at Cushing.

 

AS this guy says, nothing illegal, it's just that the game has been changed to the benefit of investors over consumers.

 

Since Magox is never wrong, he'll will probably respond with, "I used to trade futures. You don't know what you're talking about."

 

Contango

[whateverdude]

The Saudis will say anything to mask that they have reached peak oil.

[RkFast]

Wikileaks....lololol