It was just a few weeks ago that we told you that the Gaza war would end before Barack Obama took office. Along those same line we believe Russia would come up with an agreement with the Ukraine. In our view we related these events to the events from 1981 when President Ronald Reagan took over the office from Jimmy Carter. Carter was viewed as weak, the economy was terrible and we had hostages in the Middle East.
Here we are 28 year later and we have similar not exact but similar situation. What was announced today. Russia and Ukraine were aiming to sign an agreement on Monday to restart gas flows to Europe through Ukraine after finally agreeing a price for 2009 supplies. And Gaza’s streets brimmed with energy Monday as people picked up the pieces of their lives, while Israeli officials said they planned to pull all troops from the territory by Barack Obama’s inauguration as president of the United States on Tuesday.
Of coarse the recession has not gotten any better yet nor does anyone expect it to anytime soon but we have plenty of oil.
The deep contango price trend is encouraging more traders and refiners to
store crude on board ships for up to six months, but a longer term play could be
tricky because of the difficulty to secure loan, maintaining fluid cash flow
and the high financing cost.
The estimated volume of crude oil stored on ships has shot up to as much as
100 million bbl or 50 ships, double the volume seen in early January.
Expect $29 a barrel by the end of the month.
Sokolis for all of your fuel management and fuel consulting needs.
www.sokolisgroup.com or call (267) 482-6155
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