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$100.01
The March Brent Crude contract has just surpassed $100 for the first time since October 2008. Surely nobody is worried about monetary policy and Middle East contagion. After all, this is just throwing darts at the next disinflationary target.
And just to demonstrate how successful Genocide Ben has been at whatever his agenda is, below we present the ICE gasoline contract, which is only relevant for those who drive, use transportation, buy food, ship stuff or travel. Nobody else will be affected. It also confirms that disinflation reigns supreme.
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How about putting a lid on these ass raiding ACB's
Can we all just get along!!!!
the price of oil is the crisis barometer - it measures how close the military industrial complex is to precipitating a crisis somewhere in order to save the dollar, the axis of evil, or the world....i am sure it will justify an invasion of iran or some other country which is not a puppet regime of the usa like egypt....
Oil is a short.
Why the hell would Egypt shut down the Suez canal?
They are rioting because their economy is SH*T.
Shutting the Suez canal would only make it worse!
Well, it could be more of defending it. Speculators like to consider the possibilities and get in front of it,,,such as,,,, an attack on its security and hence control by others including the notion of an "international incident". That's the reason for Oil's spike up $2 as we speak.
And how much do you think the average Akbar is getting from oil revenues in Egypt?
If you think income inequality is a problem here in the U.S., just visit the Middle East. The poor in Egypt seem to have nothing to lose disrupting oil flows... they're poor and very hungry already.
The Egyptian people desire regime change. Nothing gets that done faster than shutting down the Suez.
$100 oil. Is THAT why the stock market is going up today? S&P up 1.3% on my charts (24 hour).
DavidC
Ergh! Likely from XOM EPS and MEE deal. We have a very delicate balance right now of which the momo's still feel comfortable enough to run with the Bernanke Put regardless of the forces of negativity gnawing at its feet. This does give you at least some volatility and price action to trade. So get in there and have fun with it, Yippee!
The price of oil going up is not only related to
Egypt or the Suez Canal, this is just
distraction from the underlying problem of the
lack of cheap and abundant energy resources, in
this case (Oil).
The next energy Shock is already here, they are
just trying to find a good storyline to tell other
than Peak Oil.
Yep. People desperately want to cling to the notion that whatever is "causing" this price shock can be reversed.
If it IS Peak, it cannot be undone...it's a one-way street with no UTurns. And that type of Kobayashi Maru doesn't sit well with all the Kirks around here.
Better to believe in alt.energy or that oil production will go to 130mbpd in the next 20 years like the laughable old IEA forecasts.
Insofar as our "way of life" is inextricably tied to oil, yes motherfuckers, OUR WAY OF LIFE is going to end upon the oil peak. A different way of living is going to emerge whether we like it or not.
The question is, how long?
That is the question. The process is not a moment, but a transition. I estimate we have at least 2 years and at most 5 years before supply tips over. Accept it and plan accordingly. You will be happier. Guarenteed.
Global supply has already passed peak.
I wonder how long before a different way of life emerges. Seems like for many, like the Egyptians, it already has.
In America, it seems to me like we are still hanging out at the cheap oil party, maybe a bit too long.
I will not argue that the peak has passed, yet. But global net exports have and from a net energy perspective we have: NGL while liquid and very useful, is not oil. We are very close; close enough that the exact date no longer matters. It is a process, not an event.
A different way of life? Does not compute. The problem is 6 billion people on the way to 7 billion. The only way out is ugly.
I like to think (hope) that we will figure a way out of this, but I fear that you are correct. The next 50 years ain't gonna be good for about 4 billion people....
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I like to think (hope) that we will figure a way out of this, but I fear that you are correct. The next 50 years ain't gonna be good for about 4 billion people....
>>
Most people are driven by hope rather than a deep, abiding respect for the awesome power of mathematics.
So in that context, I won't take issue with the number 4 billion (which doesn't mean I agree with it), but maybe the hope folks, rather than focusing on 4 billion, choose to focus on the 50 years.
You see, 50 years to erase 4 billion people means some miraculous persuader gets 20 year olds to stop having sex and reproducing. It means we can achieve that Holy Grail of all businesses in trouble -- **reduce payroll via attrition**.
Seldom works. The right number might be 10 years, or less, in which case "attrition" will involve a lot of blood -- or very thin people enroute to an early grave.
I am well aware of the math... Think of a path integral in a non-conservative field. You know the initial and final states but the value is dependent on the path. It is that path which is unknown.
Yeah, the shit could really hit the fan but I don't think it serves anyones interests to dwell on or predict it. Recall, Cassandra was ignored.
DXY...check the chart. Nice flash move. I'm sure it's nothing.
This day is simply a banner day for currency destruction. I can just imagine the smile on Ben Bernanke's face right now.
I caught the un- weighted chart. Thanks for the reminder. Re: DXY
DXY just flashed again...81.81. But again, I'm sure it is nothing. I'm sure there is nothing behind those prints...like there was nothing behind that IBM ramp up the old keester. I'm sure things are fine just like the flash crash was nothing, and just like everything is nothing that cannot be overcome by printing and destroying my currency.
Carry on then.
Ooops. Now add a naked short sell or algo attack on the Vix...which just collapsed intra minute. But I'm sure it is nothing, and it makes perfect sense that the crippled American consumer won't be bothered by sky rocketing gas prices...or anything.
I'm sure I am just paranoid...a wory wart. Yeah, it is probably my fault that I cannot get comfortable living in this Banana Republic Tree.
Cue up the creation units machines everywhere and suddenly create supply-o-plenty at prices just this morning raised to priced for stupid...commence the selling of infinity.
What a joke.
Rush Limbaugh's opening monologue was along this theme today: QE2->Inflation->Unrest in Middle East. This means these ideas are going VERY mainstream.
Excellent, the more that know the Fed is the enemy the better. Something Americans of all stripes can rally behind.
The only thing Americans can rally around is their 2 minutes of hate when the MSM puts on a picture of Osama Bin Laden as they give up their liberties.
The Fed is exporting the inflation to the third world
Now that is a very interesting theory. Good work!
forget the dip!
buy the fucking down-tick!!!
Hamy, is right....market is up up and up....I can't even get the VXX going with all this shit news......
Oil is getting scarcer. Unless global population suddenly halves i wouldnt expect to see long term oil futures trend lower for long.
Just let it rise a few more days and then SHORT IT BACK TO 90$!!!
You actually have some really good ideas.
OLO? Is that a good ETF to play the Crude Oil fraud?
I only have 1-2k to beat against Wallstreet with...
Look what happened in July 2008, that was the "last drop".
You can't have inflation without more money in everybody's pockets, and that's our case. More money coming through the backdoor are just hiding the reality behind the mark-to-make-believe accounting, insolvent banks, bankrupt states, generally declining economy etc (btw, just take a look at the marginal effect - what a disaster!) and are not fueling demand at all. In fact demand (and I'm talking about aggregate demand, not ipads) is highly elastic to prices especially if incomes are affected, and you only need a "last drop" to finally start the dominos (demand -> prices -> jobs -> prices -> jobs again -> demand -> and so on).
Snow on the al-Jazeera screens? Say it ain't SNOW
Heck, if oil's going to $200, gasoline to $10/gallon and gold to $5000 anyway because of monetary debasement, there better be a crisis to blame it on forthwith, eh?
Or, is the crisis simply the result of the debasement and all the other high-wire acts of massive and ultimately fatal hubris committed by the elites to maintain the lifestyles to which they've become accustomed?
Or, have these possibilities blurred together, like pretty, exquisite, unique harmless little snowflakes blurring into a snowpocalypse? A staged crisis there, a real one here, a false flag there, a black swan over thataway....oops
This explanation makes more sense than any other I've read. When they force austerity, they can say "Egypt."
My new invention will be timed perfectly . The Gas Tank safe.
It is basically a 4" inch thick titanium door installed over the gas cap which can only be opened by having the combination . Price tag 600.00 US dollars or 25 Gallons of gasoline whichever is more when it gets to market .
that would be really interesting if things got that bad. so much to consider. i suppose gas stations would need to be manned by police as well
Security -security security - It is a growing business today but "tommorrow" it will be the only place any discretionary income will go.
I am serious , do you think cars parked in the street will have gas in them the next morning if gas skyrockets ?
Do you think cast iron doors will be on all homes in the near future ?
Do you think sixteen y/o daughters and sons will be able to go out at night without security escorts ?
Do you think Wood burning stoves will be this cheap next year?
High fencing and walls around houses with alarms and cameras watching lawns ?
There will probably be body scanners in malls and grocery stores as robberies will escalate to unbelievable proportions
If food and gas gets scarce(or highly inflated) I assure you police officers will become judges and jurors on the spot and they aren't going to risk their life for a low salary to save your ass when needed .
I could go on and on and on but security is about to become close to all that matters .
do you think your local black helmet riot squad policing is "local" 0r mercenary .gov implants?
Wouldn't make a difference who cashes those checks . Some people are going to justify whatever the fuck they do to make ends meet or keep them sane. People do it in good times .
Husband cheats on wife contimuosly says " She was boring in bed"
Wife cheats on husband " he wasn't supportive."
Man signs thousands of loan documents w/o reading them "I have to feed my family.If I didnt I would lose my job."
Soldier kills innocent person "He was dangerous."
politician takes slush money /bribe : I deserve this I usually do a good job for the people and get no credit "
Man steals from a person who has more than him "He can afford to get another one or I deserve this just as much as he does ."
Man sells his souland others for power " I will do things different once I have complete power ."
price of gasoline in the UK- $7.00 a gallon , its coming your way USA. Government takes a major slice in tax, i feel your next. OPEC has said they are going to step up production - that's a relief prices should only get to $8.00 in March.
Since breaking the "neckline" of the formation on Thursday, GLD shares have continued lower. The target of the pattern would be roughly $125.
Natural Gas Powered Cars, Bitches!
http://www.bloomberg.com/news/2010-12-01/fiat-s-marchionne-bets-on-natur...
There will be no oil shortage. We've got some much NG in this country we don't know what to do with it.
If you don't mind drinking it in your well water.
Natural gas production in the US peaked decades ago.
How do you get that Natural Gas?
I guess is not from you eating a bad chilli beef.
As for natural Gas, I bet you are thinking on gas coming from Shale Gas:
From Wikipedia:
Shale gas is natural gas produced from shale. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada, Europe, Asia, and Australia. One analyst expects shale gas to supply as much as half the natural gas production in North America by 2020.[1]
Economics
Although shale gas has been produced for more than 100 years in the Appalachian Basin and the Illinois Basin of the United States, the wells were often marginally economical. Higher natural gas prices in recent years and advances in hydraulic fracturing and horizontal completions have made shale gas wells more profitable. Shale gas tends to cost more to produce than gas from conventional wells, because of the expense of massive hydraulic fracturing treatments required to produce shale gas, and of horizontal drilling. However, this is often offset by the low risk of shale gas wells.
From Alter Ego:
The problem to extract this type of Gas is that needs a high amount of energ in order to be extracted. That is why, you should understand this concept.
Net Energy Gain (NEG) is a concept used in energy economics that refers to the difference between the energy expended to harvest an energy source and the amount of energy gained from that harvest.[1] The net energy gain, which can be expressed in joules, differs from the net financial gain that may result from the energy harvesting process, in that various sources of energy (e.g. natural gas, coal, etc.) can be priced differently for the same amount of energy.
Conclusion: You need to put more energy than the one you are getting.
It is not quite that bad (yet), but to be profitable, NG needs to be at leat $7.75 per mcf
Does anyone remember the symbol for Bicycle Futures on the Shanghai or Shenzhen stock markets? (Air for tires -25not included)
hell I dont care. I aint got no job to drive to no way. I hope it goes to $400 and everybody can starves to death. yeah, that would be cool. dead and bankrupt, sounds like a plan.
Plenty more where you came from.
The problem is that all of those bad loans are guarenteed by fannie and freddie. The treasury has already committed to saving the GSOs so if the banks actually mark the loans to market, we get hosed, not the banks. Thats what makes this so infuriating, the banks have essentially handcuffed themselves to the treasury and put on a suicide vest. "Pay us, or we all go to hell together"
Anyone who shares my absolute disgust of The Bernank & Federal Reserve Bank den of vipers is allied with I.
Ben Bernanke is 'burning man.'
CME NG futures market just halted due to technical issues
I was just about to post that...it was down for about 20 minutes. I'd like to see a chart of the frequency of all trading shutdowns due to 'technical issues' etc, plotted over time. That would probably be pretty interesting.
It was that beautiful redhead on the fat finger terminal.
velo power to the peddle. or pedal power.
The troll is getting scared but he is going to ride that oil bitch just a few more days. Then kabloey. Time to get off.
On days of low oil price I have said "price is not informative in a market that is no market, because the Chinese have tied up long term supply in non public contracts, with non public price."
If I said that at $78, I must also say that at $93.
We aren't seeing even the tip of this particular disastrous iceberg. Please, for your own good, buy some bags of rice and have a plan to get somewhere with farmland and hydropower. On foot. Whether it be good or bad, if you just have a plan you'll be ahead of 99% of competition.
Do Not Plan To Stay Put. 99% of people don't have a non piped water supply.
The only thing driving up commodity prices worldwide are speculators armed with cheap money provided by central bankers and super fast computers. This is causing a havoc in the lives of rest of the population and pushing them towards poverty as they can no longer afford the basic necessities of life.
Regulators are either hand in glove with the banksters or are too slow to react and take ages to identify and take measures to solve the problems.
Total ban on speculation and the reinforcement of Glass Steagall Act is strictly required to bring relief to the man on the street.
http://www.marketoracle.co.uk/Article24581.html
James Howard Kunstler
On the Edge with Max Kaiser-Peak oil story-01-27-2011-(Part1)http://www.youtube.com/watch?v=rUrW76SB7xM&feature=player_embedded
On the Edge with Max Kaiser-Peak oil story-01-27-2011-(Part2)Part 3
http://www.youtube.com/watch?v=5Thvjr56uXc&feature=related
http://www.youtube.com/watch?v=Tuwxw-tpoqk&feature=related