Thursday, May 29, 2008


It was early May when the thickest of Iranian oil lost its market. 30 million barrels of oil was put in super tankers over the next three weeks. On Sunday May 25 the Gulf Times reports that the cost of shipping had fallen the previous three days. The report went on to say that there are 40 of the VLCC class ships available for hire within the next 30 days.

The above does not tell us what has happened in regard to the oil stored by Iran or if the "thick oil" fields have been shut down. The after market reports today explained today's big oil crash on a delay in off loading tankers in the Gulf of Mexico. Again, this is reminiscent of the events of 1980 when ships mistakenly waited for the price to jump before unloading. If that was the game being played today, the owners just lost about $4.50 on 2 to 3 million barrels per ship.


In response to Iran's claim that the USA has made up the story about Iran's nuclear bomb activities, the IAEA reported that it has received intelligence from no less than 10 countries that at least partially confirm the US version. The IAEA also noted that it has a copy of an Iranian plan for building a bomb. Iran must come clean before the negotiations can go further. Negotiators have said they would like to meet by June 2 or 3 but are waiting for Iran to follow the rules of the NPT.


The fall of tanker rates and the fall of oil prices suggests that a deal is probable. In the meantime, Brazil continues to order huge quantities of equipment to discover, produce and move oil. The probability is growing that the discoveries in Brazil are a series of fields that could rival the fields of Saudi Arabia.

Now is the time to add money to your accounts if you can. It seems like this turn has taken forever but those who take advantage will enjoy the money they make on this move for years to come!