On 8/24/06, Doug Henwood <[EMAIL PROTECTED]> wrote:
I apologise. Indeed the SPR numbers are there.
Fair enough. I understand what you mean now. We are not fundamentally in disagreement. "Storage arbitrage" can be speeded up by the use of derivatives and its costs hedged also by the use of derivatives etc.
Anyway thanks for your response, and I apologize for the tone of my previous post.> statistics on crude and gasoline stocks. What it does NOT provide
> is some indication of the costs of storage. Also how much of this
> storage belongs to the Strategic Petroleum Reserve (which
> presumably is not available for arbitrage purposes).
The SPR numbers are there.
I apologise. Indeed the SPR numbers are there.
> consensus. But all these moves are based on belief not actual
> physical arbitrage. Which is what I meant by neo-classical magic.
There's nothing neoclassical about it - prices move almost
instantaneously according to changes in expectations. Keynes wouldn't
have argued the point.
<http://www.eia.doe.gov/oiaf/servicerpt/derivative/chapter3.html>
Fair enough. I understand what you mean now. We are not fundamentally in disagreement. "Storage arbitrage" can be speeded up by the use of derivatives and its costs hedged also by the use of derivatives etc.
-raghu.
