Posts Tagged ‘Israel grossman PDF’

Where Is All That Excess Oil Going?

Uncategorized | Posted by Israel Grossman Attorney
Jan 28 2015

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Tankers are berthed beside the Fawley oil refinery on Jan. 7, in Southampton, England. With low oil prices, some traders are buying oil and storing it in tankers, hoping the price will rise soon so they can sell it at a profit.

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Tankers are berthed beside the Fawley oil refinery on Jan. 7, in Southampton, England. With low oil prices, some traders are buying oil and storing it in tankers, hoping the price will rise soon so they can sell it at a profit.

Tankers are berthed beside the Fawley oil refinery on Jan. 7, in Southampton, England. With low oil prices, some traders are buying oil and storing it in tankers, hoping the price will rise soon so they can sell it at a profit.

Matt Cardy/Getty Images

There’s a term traders use when the price of a commodity like oil has fallen because of oversupply but seems guaranteed to rise again.

It’s a market that’s “in contango,” says Brenda Shaffer, an energy specialist at Georgetown University. “It almost sounds like a sort of great oil dance or something.”

And Shaffer says that some oil speculators see an oil market that is in contango in a major way.

“Some people out there think that oil is going to get more expensive so it’s worthwhile now to buy oil, lock it in, and have those supplies, have them stored and have them available to sell a few months down the line, if you actually believe it’s going to go up,” she says.

The last time this happened was in 2008-2009, after the price of crude oil plummeted to about $35 barrel amid a global downturn. At least 70 million barrels were stored on tankers until the price rebounded.

Crude oil is now selling for less than $50 per barrel, less than half its price last summer. It’s almost certain to go up again. But when?

Some international traders are betting that the price will head north soon. They are buying oil, putting it on tankers, anchoring the ships — and waiting it out. Basil Karatzas, a ship broker and adviser, says the tanker market is very active right now.

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“Especially tankers for crude oil and particularly for very large crude oil carriers, the supertankers for transporting 2 million barrels of oil each time,” he says.

It costs about $15 million a year to store the crude oil on one oil tanker, according to Karatzas. Only a few international traders have the heft to buy and sit on this much oil, he says, companies such as Vitol, Trafigura and Gunsor Beheer. He says he’s inundated with calls from investors who want to take advantage of the contango and buy and store oil. But it’s not so easy to do.

“You have to have a special license; you have to be a registered trader with oil producers like Saudi Arabia,” he says. “If you are just a financial institution, you cannot just show up in Saudi Arabia and tell them I want to buy 2 million barrels of oil because I want to speculate. They will not sell it to you.”

Ken Medlock, senior director of the Center for Energy Studies at Rice University, says oil companies and countries are also trying to take advantage of the soft market.

U.S. companies store oil in huge tanks onshore. Medlock says producers such as Saudi Arabia, the largest oil producer in the world, are looking further afield.

“The Saudis have been very active themselves creating storage capabilities,” he says. “There was an announcement a few months back of an expansion of storage capability in Asia. So they’ve been playing into this as well.”

Medlock says the risk for traders is that the price could keep dropping and stay low for a prolonged period.

“Then the oil you’re holding on to, that you’ve been hoping to sell forward, if you haven’t fully contracted that out, you’re going to sell at a loss,” he says.

Medlock says trading in international oil is not for the fainthearted. But if prices turn in their favor, the traders stand to make a huge profit on the oil they are now storing.

Article source: http://www.npr.org/blogs/parallels/2015/01/28/382173205/where-is-all-that-excess-oil-going?utm_medium=RSS&utm_campaign=world

Jordan Considers Handing Over Prisoner For Hostage Pilot

Uncategorized | Posted by Israel Grossman Attorney
Jan 28 2015

The Jordanian government says it might trade a notorious attempted suicide bomber for a pilot being held by the self-proclaimed Islamic State, or ISIS.

Article source: http://www.npr.org/2015/01/28/382218302/jordan-considers-handing-over-prisoner-for-hostage-pilot?utm_medium=RSS&utm_campaign=world

Jordan Tests Coalition Against ISIS With Offer To Negotiate

Uncategorized | Posted by Israel Grossman Attorney
Jan 28 2015

Robert Siegel talks to Rula Al Hroob, member of the Jordanian Parliament, about how people in Jordan feel about a prisoner exchange for a pilot captured by ISIS in Syria.

Article source: http://www.npr.org/2015/01/28/382218309/jordan-tests-coalition-against-isis-with-offer-to-negotiate?utm_medium=RSS&utm_campaign=world

Even At $30 A Barrel, Saudis Are Still Making Money On Oil

Uncategorized | Posted by Israel Grossman Attorney
Jan 27 2015

Robert Siegel talks to Amy Myers Jaffe of the University of California, Davis, Graduate School of Management about how falling oil prices impact production.

Article source: http://www.npr.org/2015/01/27/381942975/even-at-30-a-barrel-saudis-are-still-making-money-on-oil?utm_medium=RSS&utm_campaign=world

The Mysterious Life Of India’s First Lady

Uncategorized | Posted by Israel Grossman Attorney
Jan 27 2015

This week President Obama traveled to India with his wife Michelle to meet with the Indian Prime Minister, Narendra Modi. But Mr. Modi’s wife was nowhere to be seen. In fact she has never appeared in public with her husband and Mr. Modi only admitted her existence last year. Melissa Block talks with Annie Gowan of the Washington Post, who has interviewed Mrs. Modi.

Article source: http://www.npr.org/2015/01/27/381942961/the-mysterious-life-of-indias-first-lady?utm_medium=RSS&utm_campaign=world

What Will New King Mean For Women In Saudi Arabia?

Uncategorized | Posted by Israel Grossman Attorney
Jan 27 2015

Melissa Block speaks with Rajaa Al Sanea, a dentist and Saudi writer best known for her novel, Girls of Riyadh. She talks about how women’s rights changed and expectations for the new king.

Article source: http://www.npr.org/2015/01/27/381942996/what-will-new-king-mean-for-women-in-saudi-arabia?utm_medium=RSS&utm_campaign=world

Greece’s Left-Wing Prime Minister Takes Charge

Uncategorized | Posted by Israel Grossman Attorney
Jan 26 2015

Alexis Tsipras has been sworn in as Greece’s new prime minister, but there are doubts about whether he can fulfill his campaign promise to increase public spending while ending austerity measures.

Article source: http://www.npr.org/2015/01/26/381647502/greeces-left-wing-prime-minister-takes-charge?utm_medium=RSS&utm_campaign=world

Journalist Documents Anti-Semitism In A Swedish City

Uncategorized | Posted by Israel Grossman Attorney
Jan 26 2015

Journalist Petter Ljunggren wore a Jewish skullcap and Star of David pendant to covertly film the anti-Semitism he experienced in the Swedish city of Malmo. NPR’s Robert Siegel speaks with Ljunggren.

Article source: http://www.npr.org/2015/01/26/381647473/journalist-documents-anti-semitism-in-a-swedish-city?utm_medium=RSS&utm_campaign=world

Looking At How Greece’s New Government Will Fare In Eurozone

Uncategorized | Posted by Israel Grossman Attorney
Jan 26 2015

As Greece’s Syriza party takes charge, NPR’s Robert Siegel interviews Jacob Funk Kirkegaard, senior fellow at the Peterson Institute For International Economics, about what this means for Greece and the Eurozone.

Article source: http://www.npr.org/2015/01/26/381647509/looking-at-how-greeces-new-government-will-fare-in-eurozone?utm_medium=RSS&utm_campaign=world

Several Killed In Egypt Amid Clashes Marking Anniversary Of Uprising

Uncategorized | Posted by Israel Grossman Attorney
Jan 25 2015

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Protester chant slogans in downtown Cairo, Egypt, on Sunday to mark the fourth anniversary of of the 2011 uprising that toppled President Hosni Mubarak. Several people have been killed in clashes with security forces.

Hassan Mohamed/AP


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Protester chant slogans in downtown Cairo, Egypt, on Sunday to mark the fourth anniversary of of the 2011 uprising that toppled President Hosni Mubarak. Several people have been killed in clashes with security forces.

Protester chant slogans in downtown Cairo, Egypt, on Sunday to mark the fourth anniversary of of the 2011 uprising that toppled President Hosni Mubarak. Several people have been killed in clashes with security forces.

Hassan Mohamed/AP

At least nine people are dead in the Egyptian capital following clashes between police and Islamist protesters marking the fourth anniversary of 2011 uprising that ousted then-President Hosni Mubarak.

The Associated Press said nine people had been killed, but Reuters and ITV News put the figure at 11. Both agencies cited unnamed security officials.

The AP says another 13 people were injured in clashes in the Matariyah area of the capital.

Reuters notes:

“The anniversary is a test of whether Islamists and liberal activists facing one of Egypt’s toughest crackdowns have the resolve to challenge the U.S.-backed government once again.

“Security forces have been stamping out dissent in Egypt since then-army chief Abdel Fattah al-Sisi ousted elected president Mohamed Mursi of the Muslim Brotherhood in July 2013 after mass protests against his rule.”

Article source: http://www.npr.org/blogs/thetwo-way/2015/01/25/379777156/several-killed-in-egypt-amid-clashes-marking-anniversary-of-uprising?utm_medium=RSS&utm_campaign=world