CNBC talking about Morgan Stanley and other banks putting oil in tankers.

[Joanne98]

Did anyone else see them talking about that? It went like this.

Morgan Stanley is smart for stashing oil because they have bought options on it and it they hold it until it's higher they make money.

BUT. Isn't that manipulating the market? What about the investors who have bought options on oil betting it will go down? Are they supposed to lose because MS is keeping oil off the market?

Milton Friedman is having "distortion" fits in his grave.

[groovedaddy]

1. There were people contending that this was happening when oil prices were

spiking. Reports of loaded tankers just sitting, while we were being told of shortages. Not sure if the banks had much to do with it. Enron did same thing with electricity in California getting a power plant to shut down for awhile to create a shortage, justifying a price hike.

[Joanne98]

2. Ooooh, thanks for reminding me about that rumor. I had forgotten.

Another scandal on the way!

[Trajan]

3. This is the nonsense Enron tactics ....

It should be outlawed ....

Motherfuckers ....

[Joanne98]

4. Here's a Reuters article.. Estimate is 80 million barrels

LONDON, Jan 16 (Reuters) - Norway's Frontline (FRO.OL: Quote, Profile, Research), one of the world's biggest oil tanker owners, said on Friday oil firms were storing "about" 80 million barrels of crude oil at sea, possibly the highest in a quarter of a century.

The figure is the highest storage estimate reported to date. Ship broking houses, banks that trade oil and other industry sources believe the total is considerably lower.

"We think it's about 80 million barrels...but we are not 100 percent certain," the acting chief executive officer Martin Jensen told Reuters by telephone from Singapore.

Crude freight rates have been supported on top export routes by the slew of storage bookings. Tanker firms' profits are tied to the underlying cost of oil freight.

Mike Wittner of Societe Generale said the Frontline figure fitted the broader oil market picture.

http://in.reuters.com/article/oilRpt/idINLG38017720090116

[marketcrazy1]

5. 80 million barrels

is a ONE DAY supply ( worldwide demand is about 82 million barrels a day )

[Joanne98]

10. They don't know for sure it could be more.

[GliderGuider]

11. So, like two days' supply?

I'm sorry, the volume scales of tanker storage and daily global oil consumption aren't nearly close enough to make this a realistic market manipulation tactic. What happens if the market goes back to backwardation while the oil is in storage?

[screembloodymurder]

12. Speculation? or do they know something?

I think we're heading towards WWIII.

[DCKit]

6. The danger is that so many tankers will be tied up...

the flow of oil will slow to a trickle. It's what they did to drive the price up above $140/bbl.

Oh, wait, that was all due to peak oil and greater demand in China and India. :sarcasm:

[marketcrazy1]

7. the price of oil

is down because demand is low, there is plenty of tanker capacity to keep oil moving.

[DCKit]

8. Until they fill them all up with oil and park them offshore...

as they did last summer.

If you're going to be an apologist for the speculators, please refrain from addressing my comments. You'd only be wasting both our time.

[marketcrazy1]

9. now THATS funny!!! ( referring to me as an appolgist for the speculators )

but, as you wish!!!!

[SlowDownFast]

14. I didn't take your post that way. Your post was truthful. n/t

[Mike 03]

13. Yes, not on CNBC but that rumor has been around. Thanks for reporting it. NT

[Joanne98]

16. You're welcome Mike

:hi:

[.... callchet ....]

15. See how many times the word speculator

has come up in this thread. That seems to be the whole problem. Artificially influencing the market. What did the New Deal do about this ?