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IBDvalueinvestin (99.68)

Oil price trap at $41+ today according to an oil analyst

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February 25, 2009 – Comments (5) | RELATED TICKERS: USO , DIG , ERX

He said oil will fall back down to $32 area in March because in Feb. many refineries shut down some operations. One example is the Northeast biggest refinery the Bayway Refinery in Linden,NJ which shut down for the entire month of Feb.

The shutdowns skewed the inventory numbers in favor of oil, but once they re-open in March you will see much bigger inventory build which will keep heavy downward pressure on the price of oil back towards $32/ barrel.

5 Comments – Post Your Own

#1) On February 25, 2009 at 11:57 AM, saw4saw4saw4 (29.01) wrote:

Please keep in mind that oil refineries take crude oil and process it into things like gasoline and other products. Oil rigs/wells actually pump oil from out of the ground.

 So basically you are saying oil refineries were shut down in Feb. which would cause an increase in supply and the price would go down. Then after the refineries start again supply goes down and price actually GOES UP.

 IBDvalueinvestin please re-evaluate your sources. Maybe you just did not word your post correctly?

 

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#2) On February 25, 2009 at 12:13 PM, IBDvalueinvestin (99.68) wrote:

Saw4saw, your so completely wrong. You are in the wrong sector otherwise you would have known already what I said is 100% correct.

Gasoline inventories would have risen had all the refineries been open in Feb. 

 

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#3) On February 25, 2009 at 12:23 PM, soobaroo227 (68.55) wrote:

As saw said.  If refineries shut down, but rigs/wells didn't, then oil inventories would go up.  Oil products supply would go down, but actual oil inventories would go up.  However, if what you are talking about is the oil rigs/wells shutting down, then yes, oil inventories would be lower due to a lack of production.  Which is it?

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#4) On February 25, 2009 at 12:28 PM, IBDvalueinvestin (99.68) wrote:

You know exactly what I meant so twisting it to benefit your position means nothing. You can twist the words all you want, reality is reality. Demand is down off a CLIFF.

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#5) On February 25, 2009 at 2:52 PM, saw4saw4saw4 (29.01) wrote:

IBDvalueinvestin:

 I am right. You must be mixing up the words Oil with Gasoline or Refineries with Rigs.

Try and find someone to back you up....Good Luck.

 

P.S. How can your CAPS score have gotten to below -1,500 in Jan.????

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