Diesel into China up 600%

Diesel into China up 600% year over year. Per CNBC Invest in shoes. Soon we will need them.

Been very successfully using plenty of basic fundamentals lately to supplement technicals as it's helping me see a few more forests and less trees. I can't believe how obvious this bull in energy and resources is and just how reluctant most managers are to embrace it (see Bill Miller's latest, for example). I can show you numbers from multiple agencies that show CL supply stagnant to slightly declining globally for the past two or so years despite record prices and record drilling. Peak oil is here and the press seems to cheer-leed oil down. Peak oil gets no attention from the media or the politicians. The Saudi's deny the situation as it's to their benefit to keep the full confirmation of the info (which is strange cause it's so obvious) to themselves for their own advantagious use. Energy is so obvious most are either afraid to invest or else think it's that same old cyclical business it's always been. I can buy stocks like BQI which has approximately 4 barrels of oil in the ground per share in the sands at $3.7 per share. The multiples of US retailers (trailing and forward) are way, way higher than quality E&P energy names with growing production. Many of these energy companies are quite different now-a-days with balance sheets that have lots of cash and smaller and shrinking debt.

Yesterday, somebody posted that their broker had no oil stock available to short. Often that's a sign, especially when T. Boone Pickens was so bearishly vocal yesterday. It' didn't help our local gas prices when that Texas refinery had an explosion. We are back up to $3 bucks.

Yesterday, somebody posted that their broker had no oil stock available to short.
Often that's a sign, especially when T. Boone Pickens was so bearishly vocal yesterday.

It' didn't help our local gas prices when that Texas refinery had an explosion.
We are back up to $3 bucks.

I can't remember at the moment the last time we were below $3.

CBOE oil futures delivery is in Cushing Oklahoma. We usually have some of the cheapest gas in the country. But we depend on local refineries. Last spring flooding in Kansas closed a refiner up there and we paid for it here.

Global refining capacity is just fine now. There's a little more coming on line and no more CL to refine. The only thing we need is capacity modification to handle sour grades of CL. I'm staying a way from the refiners or integrateds with moderate or higher exposure to refining.