A Great Time to Hoard Oil
Here's the big problem with oil. It's a great time to hoard it. With the glut of ships and day rates well below $20,000, it pays to fill up with oil and just keep it on a ship while prices go higher. Why not? I think that if I were still in the hedge fund business I would most definitely contract with Frontline (FRO) or Nordic American (NAT) to do so. It takes a lot of money to buy all of that crude, but it's a terrific trade and you can sell futures against it or sell it at a later date as Iran gets increasingly out of control.
You see, there are so many ships that are empty that the financial demand for oil can be filled rather easily....151 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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