Crude Supply(?) at Cushing - part 2
Hmmmmmm! ... COMEX, NYMEX, Deutche Bank ... In, Crude Supply(?) at Cushing - part 1, the hypothetical control the "STORAGE" scenario above, it's control of the pipelines, and control of the leased storage that wins "The Contango Game" by depriving the refineries of re-supply to the point they'll either pay whatever price is demanded --- or they'll have to shut down when their own tanks are empty.
COMEX, NYMEX, Deutche Bank ... are marginalized players knocked out in the first round because they didn't understand what the game was. .
--> From the US EIA report:
"Inventories at Cushing, Okla., the delivery point for oil futures traded on the Nymex, stood at their record level of 34.9 million barrels, unchanged from a week ago. "
We're using 20 million bbls of crude products PER DAY and the inventory at Cushing didn't budge.
Double Take: We're using 20 million bbls of crude products PER DAY and the inventory at Cushing didn't budge. How can that be?
"Cushing Inventory" minus "Cushing Collateral" = Cushing Supply
The stated facts imply Cushing Crude as Collateral for contango game = 100%.
Cushing Crude as supply available to refiners = 0 % ...
... Now, I could be WRONG but the pop in crude prices in the rush to close the current contract and "Roll Over" into the next contract is waving red flags all over ... well, someone may have a better explanation for the pop, but please ... I've already heard one about it was the little green aliens fault.
Smile ... it's now Friday.