Welcome to StkyTreat

[jiesen]

That goes strictly by number of posts. Somewhere between 100 and 170 posts you passed into seniorhood. Congrats!

[DSteckler]

Um ok, one more wacky question about oil refinery stocks that I do not understand. You would think with the price of oil going down, the refinery stock would shoot up because you would buy more oil for less, no?

No. Refineries are already operating at full capacity. The price of oil going down doesn't increase that capacity.

[studentofthemarket]

No. Refineries are already operating at full capacity. The price of oil going down doesn't increase that capacity.

Also, if there is a "break" in any of the weak links. There will be hell to pay.

when complex machinery is running at capacity for a long time routine shut downs don't occur. So bandaids are applied liberally through the facility. Eventually, that wear and tear causes a break down and the refinery goes offline, that will cause a supply disruption. We've not built a refinery in the USA for somewhere around 30 years. But what do you think has happened to demand in that time?

student.

[Websman]

Hey is that right? I’m a senior member! How so, I still don’t know jack about this the market stuff.

Don't worry... I don't know crap about the market, but I still manage to make money.

[DSteckler]

Don't worry... I don't know crap about the market, but I still manage to make money.

Even a blind squirrel can find a nut or two.....<VBG>

[Websman]

Even a blind squirrel can find a nut or two.....<VBG>

Amazing isn't it. Even a plain ole Southern Redneck like me can make money in the market. Ain't America great?

[billyjoe]

Even a blind squirrel can find a nut or two.....<VBG>

Sometimes the blind squirrel finds more nuts than the one with 20-20 vision. He's got fewer distractions.

-----------billyjoe

[Lyehopper]

Sometimes the blind squirrel finds more nuts than the one with 20-20 vision. He's got fewer distractions.

-----------billyjoe

Ahhhhh Squirrel..... Squirrel season opened here last Saturday. I always loved to squirrel hunt as a boy. I like it better now when the leaves fall. Mrs. Lyehopper can cook up an awesome squirrel with gravy. I saw a HUGE fox squirrel while checking my cows today, it's illegal to shoot them though. It's also illegal to feed the deer during hunting season now in VA (new law). I like corn feed venison.... I have never seen a VA game warden on my land though.... so I ain't too worried about moving my automatic feeders just yet.... jejeje

[JohnHenry]

Oil &amp; Metal Stocks

Any ideas why the oil stocks are taking a drastic hit, because of the lower oil prices?

Outlook for metal stocks may look good for the future, from my reading the metal stocks may come back due to demands from China growing, any thoughts?

Ok, I have to get to class. Thanks

[JohnHenry]

No. Refineries are already operating at full capacity. The price of oil going down doesn't increase that capacity.

Yeah the price doesn’t increase the refineries capacity but can’t they still buy more for storage until they need to refine it?

[studentofthemarket]

Yeah the price doesn’t increase the refineries capacity but can’t they still buy more for storage until they need to refine it?

Ah... the joys of Just in Time inventories. A while back when oil became more volatile the oil companies realized they didn't want to have millions upon millions tied up in inventory that may suddenly be worth less.

sooo... they stopped storing vast quantities of oil.

not nearly as much storage capacity as there used to be.

[jiesen]

Ah... the joys of Just in Time inventories. A while back when oil became more volatile the oil companies realized they didn't want to have millions upon millions tied up in inventory that may suddenly be worth less.

sooo... they stopped storing vast quantities of oil.

not nearly as much storage capacity as there used to be.

yep. that's what futures contracts are meant to address.

[billyjoe]

I want a business that is good when times are good and better when times
are bad.

--------------billyjoe

[Lyehopper]

I want a business that is good when times are good and better when times
are bad.

--------------billyjoe

Ahhhhh!..... The GoJi.... Did I mention that the apple harvest is now coming in down here?

[DSteckler]

I want a business that is good when times are good and better when times
are bad.

--------------billyjoe

Buy a liquor store.