Soul Strut

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Some of you are making some good points, but missing a few things also. 1. Whoever said the price of crude just went down, you're referring to a one-day decline in price after 5 straight days of new highs. If I'm not mistaken it's back up today (edit: it's down 0.19 at 3:50est, it was up earlier though). And if you're up on your crude price knowledge, you should know that the price of crude takes sometimes three weeks to correlate to the price of gas at the pump. 2. Prices drove higher over the past couple weeks also because of a fire at a Valero refinery in Texas and weather concerns with the approaching hurricane season. Remember last year when massive oil platforms were sent drifting in the Gulf Of Mexico? That affected short-term supply, and prices ran up fast, I think that was the first time it cracked 50 a barrel. Hurricane season is here again, speculators are driving up the contracts in advance of the damage. Fuck all this. Do yourselves a favor and buy long-dated call options on Valero Energy (VLO) since they're the top refiner of heavy sour crude, which is more available these days than light sweet. Not only that, but they have pricing power and get the heavy sour at a deep discount since no one else will buy it. Might as well make money on the shit, this way you can sit back and listen to people complain about the prices of things and chuckle softly to yourself. Keep in mind too, Wal-Mart came out today and lowered profit forecasts putting the blame squarely on the price of gas. That's big. Pundits have been wondering when energy prices are going to slow down the economy, the first big indicator came today.

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