Loading ...The big banks, trading houses and oil companies own the storage at Cushing, Oklahoma. If you don’t own storage, you can’t deliver crude on the futures market. It’s the same with farmers. The elevators won’t issue a delivery certificate for grain. Until those strangle holds are broken, the pricing extremes will become more intense. An old friend of mine was getting $70./bbl in western Oklahoma and the futures were $100. A semi truck holds 100 bbls. That’s $3000. to haul a load of oil 150 miles. Not too difficult to see where the money is going .
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