You want More Oil and SPX Bounce?

As OGM, Nav and Dcengr said, sell or short the rally!!

http://www.dispatch....OL.html?sid=101

Ships, tanks bloated with oil
Surplus growing as global demand keeps plummeting
Wednesday, March 4, 2009 3:11 AM

By Chris Kahn

Associated Press
NEW YORK -- Supertankers that once raced around the world to satisfy an unquenchable thirst for oil are now parked offshore, fully loaded, anchors down, their crews killing time. In the U.S., vast storage farms for oil are almost out of room.

As demand for crude has plummeted, the world suddenly finds itself awash in oil that has nowhere to go.

It's been less than a year since oil prices hit record highs. But now producers and traders are struggling with the new reality: The world wants less oil, not more. And turning off the spigot is about as easy as turning around one of those tankers.

So oil companies and investors are stashing crude, waiting for demand to rise and the bear market to end so they can turn a profit later.

Meanwhile, oil-producing countries such as Iran have pumped millions of barrels of their own crude into idle tankers, effectively taking crude off the market to halt declining prices that are devastating their economies.

Traders always have played a game of store and sell, bringing oil to market when it can fetch the best price. They say this time is different because of how fast the bottom fell out of the oil market.

"Nobody expected this," said Antoine Halff, an analyst with Newedge, a brokerage services firm. "The majority of people out there thought the market would keep rising to $200, even $250, a barrel. They were tripping over each other to pick a higher forecast."

Oil prices rose yesterday, partially offsetting an enormous sell-off that started the week. Benchmark crude for April delivery rose $1.50 to settle at $41.65 a barrel on the New York Mercantile Exchange.

Now the strategy is storage. Anyone who can buy cheap oil and store it might be able to sell it at a premium later, when the global economy ramps up again.

The oil tanks that surround Cushing, Okla., in a sprawling network that holds 10 percent of the nation's oil, have been swelling for months. Exactly how close they are to full is a closely guarded secret, but industry analysts say Cushing is approaching capacity.

Some oil is being stored in giant ships. On these supertankers, rented by oil companies such as Royal Dutch Shell, there is little for crews to do but paint and repaint the decks to pass time.

More than 30 tankers, each able to move 2 million barrels of oil, now serve as little more than floating storage tanks. They are moored around the globe, from the Texas coast to the waters off Europe and Nigeria.

The latest government records show U.S. inventories are bloated with a virtual sea of surplus crude, enough to fuel 15 million cars for a year. Inventories have grown by 26 million barrels since the beginning of the year. Oil from Saudi Arabia, the United Arab Emirates and Nigeria is finding few takers.