Thursday, October 8, 2009

Floating Storage Sinking

A great story by Brian Baskin in the Wall Street Journal about the financial risks involved in storing oil. While storing oil on an opportunistic basis was common earlier in the year. The Journal story shows that in free markets such arbitrages only exist for brief periods:
"Storing oil is rapidly becoming a losing proposition...companies will find it difficult to extricate themselves.." (WSJ)
 
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