[Schmuto]

http://www.bloomberg.com/apps/news?pid=20601072&sid=aZtS4TC9mxJM

Fascinating.

Along with GS, I consider JPM to be the boys in the know.

If they're willing to undertake the expense of hiring out a new tanker for heating oil storage, they must really be expecting heating oil to move between now and November/December.

[Cochise]

I am not a stock market expert, BUT, if JPM expect the price of petroleum to dramatically raise, why not invest in oil futures, rather than buying the physical product? It needs to be stored in an expensive tanker, and the personnel in the tanker needs to be payed etc.

[Schmuto]

I am not a stock market expert, BUT, if JPM expect the price of petroleum to dramatically raise, why not invest in oil futures, rather than buying the physical product? It needs to be stored in an expensive tanker, and the personnel in the tanker needs to be payed etc.

All I can think of is that:

1. The futures contract for home heating oil is already higher, and so they already know what their profit is if they have the sell end of those contracts.

and/or

2. They expect distillates to increase faster than oil.

[SchroedingersCat]

Futures don't matter if the the party can't deliver. Maybe JPM has some insight into mid-east tensions and where they're headed. Imagine what a few tankers of heating oil would be worth this winter if the oil from the mid-east is cut off.