The Chinese are back on an oil buying binge as China's CNPC made a $4.18 bln bid for PetroKazakhstan. Fuel shortages in China have been causing havoc as the Chinese government began implementing price caps on retail prices. In fact, the Chinese government sent thousands of police to retail gas stations to maintain order as drivers fought to fill up their tanks. The current worldwide oil situation is much more serious than what is being reported.
The DJIA was up 82 points earlier in the day before gradually selling off to close up 10 points. The Standard & Poor's 500 index gained 2 points while the NASDAQ rose 5 points. Oil prices inched up .10 to close at $65.45. Crude oil was higher after a power failure across Iraq forced the suspension of exports from the country's southern terminals.
Volume is again light while many influential traders are still on vacation. I would like to see stocks continue pulling back so we can grab some bargains before the yearend rally begins.
