Hi Digger

I just heard that AIG is unwinding a commodities portfolio worth about 150 billion dollars ,30% of that is oil .and more big outfits are going to do the same thing ,as they need the money to cover up their losses .makes me nervous of were this will drive oil stocks .They also said if the OPEC tries to cut back sales they will wind up with a huge surpplas and their storage will be over loaded and dumping will begin ,driveing down the price even more .

That's what happens now.To get the cash they sell their oil stakes .That's why IMO oil companies didn't follow the trend of the oil price when it went to around 145.Oil stocks were already anticipating on the fact that the oil price could not hold on.

If you look to the chart of oil it's clear that a bubble was growing but the media keep on writing about peak oil ,shortage etc..The only thing we can look for is where we are gonna see the bottom of the downtrend.

Now we could see if DG approach of hedging will gave us a bonus.

MRC normally must benefit from the situation.From calculations did by some of you in the spreadsheets ,the volume of pumping up bitumen is more important then the price of WTI.