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Originally posted by JB1234
reply to post by libertytoall
Because an Investment Bank exists to make money...
ie... they buy barrels of oil at $75 a barrel.... hold millions of barrels offshore in a tanker...withdraw that supply from the market... the price inevitably goes up.
Hey Ho sell at $95 dollars a barrel... You've made a whopping profit..
Originally posted by libertytoall
It just doesn't make sense. If bankers wanted to hoard oil and keep it offshore they certainly wouldn't be buying the oil in the USA. Plenty of other countries sell oil MUCH cheaper.
To believe this story you would have to believe banker elites are stupid and willing to spend four times as much on something then they could elsewhere. I don't buy it.. Elite bankers don't make bad investments..
It would make more sense for $100 million to be spent in another country and then brought to the US to be sold at 400% profit.edit on 17-9-2011 by libertytoall because: (no reason given)
Originally posted by 11andrew34
While there are countries with cheap oil that would make a better arbitrage situation, you just can't do it.
Those countries have a subsidized domestic prices and generally have an export market. Libya was even one of those countries with rock bottom subsidized oil prices for the domestic market and market prices for the export market.
Oil tankers are not exactly ideal smuggling vessels either.