Monday, September 05, 2005

Boat

Safe Haven | A Slow Boat to China or Hollywood Hubris?
The Baltic Dry Index [the spot cost of hiring a ship] is set daily in London, England, has historically been a reliable proxy of world trade in dry goods and is a composite of daily inputs from the players in the global shipping industry. As you can see, this index 'crashed' in the past three months.

Remember folks, China is no more a natural exporter of crude oil than you or I are builders of space ships. In fact, they've actually begun rationing the stuff. China needs oil and particularly right about now with their own Strategic Petroleum Reserve due to be completed in August 05. Being the silly guy that I am, I start asking myself - why would a country that imports 45 % of its voracious and growing oil demand suddenly become a seller of crude oil?

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