Saturday, May 14, 2011

Commodity Prices Disconnect from Physical

Based on some reports I am hearing about OIL and FUEL PRICES, we are about to get another lesson in the price disconnect between physical and paper.  We are about to see how the paper price of CRUDE OIL disconnects from the physical PUMP PRICES.  Just consider the FUEL PUMPS where you go fill your vehicle the PHYSICAL PRODUCT and the price of CRUDE OIL as the PAPER PRICE.  Watch OIL go down and the PUMP PRICES remain high.  How does this happen?  It's the magic of the WALL STREET and OPEC CARTELS....developing...

PUMP PRICES STAY HIGH:                                    CRUDE OIL DROPS: