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Brent Crude Passes $104

Tyler Durden's picture


This is not the $104 brent crude you are looking for. Ignore everything and just BTFWW3.


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Wed, 02/16/2011 - 12:55 | 966979 Larry Darrell
Larry Darrell's picture

You can't bother the sheeple amerikans with talk of WW3 and expect to garner any interest.

Now WOW expansions, that's a different story.

Wed, 02/16/2011 - 12:55 | 966984 101 years and c...
101 years and counting's picture

apparently, the EUR is the new flight to safety?


Wed, 02/16/2011 - 12:58 | 966995 American Dreams
American Dreams's picture

Yeah, I'm at a loss on that one as well??  Will wonders never cease...


there be no shelter here

Wed, 02/16/2011 - 13:04 | 967032 DosZap
DosZap's picture

If your into currency load up on Euros.

All the PIIGS, are getting kicked out, and value of the EURO will eat the $ ass.

Wed, 02/16/2011 - 13:05 | 967036 schoolsout
schoolsout's picture

per a few days ago


Dear CIGAs,

When Harry speaks, I listen. I understand he is writing monthly for the Adens.

Dean Harry Schultz send us the following:

Buy euros because Greece, Spain and Portugal are going to default. Germany controls Europe.

Theme: The weak countries will be forced to leave the euro. The euro thus becomes stronger.
Recommendation: Buy and hoard euros.

This makes sense, or at least is ok for diversification of assets. Especially if you live in the EU.


Wed, 02/16/2011 - 13:10 | 967066 tmosley
tmosley's picture

Might as well put that money on "black".  There is no guarantee that it will play out that way.

Wed, 02/16/2011 - 13:21 | 967130 EscapeKey
EscapeKey's picture

Especially not considering all "financial hawks" are evicted from offices around the world.

Wed, 02/16/2011 - 13:53 | 967295 Herd Redirectio...
Herd Redirection Committee's picture

Yeah, Germany controls Europe, and Germany wants a weak Euro because it helps their manufacturing and exports-oriented business to no end.  Can you imagine if Germany still had the Deutsche Mark how much stronger its currency would currently be?  Some 40% stronger?  So why would Germany decide to give that up?

Capital Research Institute

Wed, 02/16/2011 - 14:07 | 967354 gorillaonyourback
gorillaonyourback's picture

that dont make no sense, if kicked out they dont get the money the piigs owe and how you gonna sell to someone who already owes you money.  thats a play after the new currency over there come out.  the new and improved currency, excommunicating the piigs

Wed, 02/16/2011 - 13:07 | 967040 American Dreams
American Dreams's picture

Rumor, news, your personal position on the matter or just something I missed?? Thanks  DZ. 

Wed, 02/16/2011 - 13:09 | 967069 reading
reading's picture

Desperately pumping the Euro hoping it will make everything else look like it's ok..the farcical nature of all of this is simply staggering.

Wed, 02/16/2011 - 13:29 | 967172 jus_lite_reading
jus_lite_reading's picture

I'm thrilled to see someone else besides myself gets it. Bravo! There is hope afterall!

Let's hope that China wakes up to the fact that the EU has played a big bad joke on them!

Wed, 02/16/2011 - 13:33 | 967194 UGrev
UGrev's picture

The front-line is everywhere...

Wed, 02/16/2011 - 13:02 | 967013 iota
iota's picture

Nah, It's Swedish Krona or Oz dollar. Which says a lot more 'bout the rest of the world than it does Sweden or Oz.




Wed, 02/16/2011 - 13:03 | 967016 PY-129-20
PY-129-20's picture

It is, my friend. Trust me. Just buy some Euros. And remember, Mrs. Merkel said: "The Euro is safe." You also get a T-Shirt for free: "I saved the Euro."

And no, don't listen to these rumours about Portugal, Spain, Italy, Belgium, Cyprus, Finnland. No,no these are veeeery baaaad rumours, cheap propaganda stuff, ya know.

Now, repeat after me: "The Euro is safe."

Oh Trichet said something today about the United States of Europe, btw.

I want my Deutsche Mark back.

Wed, 02/16/2011 - 13:13 | 967086 Charles Wilson
Charles Wilson's picture

"Oh Trichet said something today about the United States of Europe, btw."


Sooooo...Maybe I should get out my copy of Herbert Armstrong's _The United States and Britain in Prophecy_?



Wed, 02/16/2011 - 14:06 | 967345 Rusty Shorts
Rusty Shorts's picture

Good Lord, Herbert W. Armstrong ... now there's a name I haven't heard in a long time.


Here he is talking about the U.S. and Britain.

Wed, 02/16/2011 - 13:02 | 967022 raya123
raya123's picture

No, the euro is in a downtrend and will not bottom until April.  It will drag the stock market down with it.

Wed, 02/16/2011 - 16:31 | 967863 10kby2k
10kby2k's picture

i thought cloud computing was the flight

Wed, 02/16/2011 - 13:00 | 967003 Mongo
Mongo's picture


Wed, 02/16/2011 - 13:01 | 967006 andybev01
andybev01's picture

Thank god this doesn't affect the PPI or CPI numbers.

Wed, 02/16/2011 - 13:03 | 967029 whatsinaname
whatsinaname's picture

Of course there is no inflation. haha

Wed, 02/16/2011 - 13:11 | 967079 Agent P
Agent P's picture

Focus on the core young Skywalker...which for the record will soon be calculated by taking the headline number ex-everything-but-housing due to volatility.

Wed, 02/16/2011 - 13:02 | 967015 youngman
youngman's picture

This is so wierd...WTI vs and silver...Interest rates...treasuries..I don´t know what to believe in..maybe Obamas revenue projections I guess..

Wed, 02/16/2011 - 13:02 | 967019 RobotTrader
RobotTrader's picture

UGA at fresh, new highs for the move.

USO still waffling around near the low end of its trading range.

= Fantastic profiteering by the refiners:  TSO, VLO, WNR, MRO

After getting browbeaten the last 3 years, they will be exacting their pound of flesh by deliberately charging the most outrageous margins to the independent gas stations.

But, of course, that still won't stop teen retailers like ANF from launching even higher.

Wed, 02/16/2011 - 13:12 | 967090 lieutenantjohnchard
lieutenantjohnchard's picture

hey catfish mouth robo (your words) is it easy to make money trading today, or is it a jungle out there for survival? since your belief (at least for the next few minutes) is that there's no inflation (your words) then load up on those auto stocks.

and since you believe the jpm silver short position is a myth  (your words yesterday) why not short silver and make a bundle when the myth becomes reality. then you'll really be in a position to school gentleman jim sinclair when the gold silver trade collapses in a heap.

Wed, 02/16/2011 - 13:31 | 967177 goldsaver
goldsaver's picture

Is that you robo???

Welcome back from vacation man, missed your posts (specially the pics)!

Wed, 02/16/2011 - 13:04 | 967026 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Situation Normal, All -- wait, how does it go again?

Wed, 02/16/2011 - 13:15 | 967106 aheady
aheady's picture

SNUFA? Uhhh... FARBU? I give up.

Wed, 02/16/2011 - 13:06 | 967035 John Law Lives
John Law Lives's picture

Good thing that food and energy prices are not relevant in CPI calculations.  The public might be tipped off that the cost of living is rising.  The NFL and the NFLPA had better resolve their differences soon before the NFL season is jeopardized.  the absense of NFL action might prompt Americans to take the blinders off and pay attention to the real world.

Wed, 02/16/2011 - 13:40 | 967238 andybev01
andybev01's picture

Nah, they'll just line up outside the local methadone clinic for double-doses of 'arena' football.

Wed, 02/16/2011 - 13:07 | 967037 dick cheneys ghost
dick cheneys ghost's picture

warning that UK could go "belly up"

Wed, 02/16/2011 - 13:08 | 967044 youngman
youngman's picture

When is the next I Phone going to be announced....we have to get back to normal

Wed, 02/16/2011 - 13:08 | 967049 buzzsaw99
buzzsaw99's picture

all your oil r belong to us.

Wed, 02/16/2011 - 13:09 | 967052 campag
campag's picture

as per usual mildly bearish weekly stock figures out today , fundamentals ignored as the norm .

too infinity and beyond....

Wed, 02/16/2011 - 13:09 | 967058 99er
99er's picture


Possible back test of breakout...

Wed, 02/16/2011 - 13:10 | 967072 Clampit
Clampit's picture

Not WW3, more World Civil War I.

Wed, 02/16/2011 - 13:30 | 967182 jus_lite_reading
jus_lite_reading's picture

Correction: World Revolutionary War I

Wed, 02/16/2011 - 13:38 | 967225 BobPaulson
BobPaulson's picture

I wish.

Thu, 02/17/2011 - 00:42 | 969211 Mr Poopra
Mr Poopra's picture

Unfortunately it will end with, not start with the US.  Try even assembling peacefully in protest without getting a nightstick to the back of the head from your helpful and courteous law enforcement officers.

Wed, 02/16/2011 - 13:14 | 967075 ebworthen
ebworthen's picture


(accompany each with a Jedi wave of the hand)

"This will not affect food prices."

"Horse and oxen grow our food and transport goods and people; not those new-fangled internal combustion engines."

"Gold and other precious metals are not currency because you cannot eat them and they hold no value for the cultures of the world."

"The database dollars in your 'bank account' consisting of nebulous and immediately changeable and deletable 0's and 1's are worth more than a loaf of bread, potable water, and liberty."

"Your government and the corporations and businesses of the land care about you and your children, and are stewards of the greater good and of the future."


Thu, 02/17/2011 - 00:37 | 969203 Mr Poopra
Mr Poopra's picture

I thoroughly enjoy your posts, sir.

Wed, 02/16/2011 - 13:18 | 967114 SRV - ES339
SRV - ES339's picture

Hey, lets give them some credit... flood the line with WTI (thanks Alberta)... "what's Brent got to do with it... got to do with it"... good old fashioned American ingenuity!

Wed, 02/16/2011 - 13:23 | 967133 buzzsaw99
buzzsaw99's picture

West Texas Infatuation:

Woo woo woo woo

What's Brent got

That I ain't got?

What's so special

About a Nordic earl girl?

Wed, 02/16/2011 - 14:31 | 967449 Cpl Hicks
Cpl Hicks's picture

Oh, where oh where has my WTI gone?

Oh, where oh where can it be?

With it's price cut short

And Brent's cut long

Oh, where oh where can it be?

Wed, 02/16/2011 - 13:29 | 967168 CrashisOptimistic
CrashisOptimistic's picture

FYI some computations are underway on how to get WTI to the Gulf coast for either access to the refineries down there or shipment to China, in order to get its price up to the Brent price (and lower Brent just a tad on new supply).

The bottom line seems to be $8 to truck or rail ship it south from Cushing, plus another $1 for administrated crapola.

So the spread should close down to $9ish from the present 18 or 19.  The spread will grow from there, however, since WTI is drying up.

Look very carefully at Exxon's new discovery report yesterday.  They replaced only natgas, not oil. There was talk of "barrels of oil equivalent" which is euphemism for "we're hiding depleting oil with gas statistics".


Wed, 02/16/2011 - 13:28 | 967169 AndrewJackson
AndrewJackson's picture

Can someone please shed some light on the $18.25 spread between WTI and Brent? I mean WTI used to trade at a premium and now its a near 20 dollar discount?

Wed, 02/16/2011 - 13:36 | 967200 CrashisOptimistic
CrashisOptimistic's picture

This has been covered.  It's a pipeline issue.  Canadian oil is filling Cushing Oklahoma tanks and that is the pipeline destination for what little WTI is still produced.  The pipelines OUT of Cushing do not flow south to Houston, so that oil can't compete with the imported oil going to the refineries there, or to China and India.  Chindia are the big consumption growth locales and WTI can't get to them, so it is less valuable.

The new proper price of oil is Brent, and it is $104 / barrel.  The refineries on the Gulf coast are paying that for input, and you'll pay the consequent gasoline price on the output.

Wed, 02/16/2011 - 13:38 | 967216 AndrewJackson
AndrewJackson's picture

Much appreciated.

Wed, 02/16/2011 - 17:23 | 968027 nufio
nufio's picture

im not sure i understand. why would the refineries buy brent when they can buy up all the wti available first? wouldnt that increase the price on wti?

Wed, 02/16/2011 - 13:34 | 967208 goldsaver
goldsaver's picture

I turned on MSNBS this morning (I really need to stop doing that before my first coffee) and saw oil listed at 88. Big huh???? from me. Then I realised they were listing March futures not Brent or WTI. Interesting.... why would they be listing futures contracts but not current prices?

Wed, 02/16/2011 - 13:50 | 967284 Bolweevil
Bolweevil's picture

Current prices scare people.

Wed, 02/16/2011 - 14:02 | 967328 CrashisOptimistic
CrashisOptimistic's picture

Duh.  Why should they not be scared?  It is civilization's alpha asset and it has been north of $90 barrel in 3 of the last 4 yrs.  That has never happened before until now.

Some of those mega giant fields have been pumping for 70 years.  They aren't infinite.  The end has to arrive sometime.  But you can rest assured that whenever that time is, there will be lots of guys who will say "blah blah, yeah, I've heard this before, it's crap.  It is not yet."  Doesn't matter when it happens.  There will be people who say that -- even if the price is $1000/barrel.

Wed, 02/16/2011 - 13:59 | 967322 campag
campag's picture

can they rail ship wti greater quantity  from Cushing  than the Canadians keep delivering it by pipeline ? 

Wed, 02/16/2011 - 14:06 | 967338 CrashisOptimistic
CrashisOptimistic's picture

Canadian oil fills the tanks.  Blocks out WTI.  Canada doesn't produce WTI.

You get a similar effect with Canada (Alberta) oil not easily shipped to Quebec.  

There are logistics in play here, but the bottom line is the US produces only 5 mbpd of oil and consumes a lot more than that.  It gets imported and the imported oil is priced at what the market will bear.  It is a market that can't get WTI so WTI's price is no longer definitive.

Wed, 02/16/2011 - 14:06 | 967347 campag
campag's picture

agreed but the Canadian crude is causing the glut in Cushing

Wed, 02/16/2011 - 14:12 | 967377 JW n FL
JW n FL's picture

who was it that wanted my December $125's? I wish I could re-call the name... ruffly quoting myself, "no, I dont want to take your money away from you..." lol 

Wed, 02/16/2011 - 14:14 | 967381 the mad hatter
the mad hatter's picture

so yeah, whats with the 20 dollar difference between BRENT and WTIC?

my CL position is killing me.

Wed, 02/16/2011 - 14:18 | 967396 Flakmeister
Flakmeister's picture

  Some food for though, from today's WSJ

Exxon cannot replace their oil reserves....don't be fooled by NG and NGL being counted as boe, they are not.


Wed, 02/16/2011 - 14:56 | 967552 Rusty Shorts
Rusty Shorts's picture

Wow, thanks for the link !!

Wed, 02/16/2011 - 15:03 | 967578 Rusty Shorts
Rusty Shorts's picture

I think i've got it now. We just take some hydrogen and carbon, mix them together and *WHAM* - Hydrocarbons.


Party on!!!


Thank you, thank you very much.

Wed, 02/16/2011 - 15:08 | 967601 swineflogger
swineflogger's picture


Wed, 02/16/2011 - 15:11 | 967618 CrashisOptimistic
CrashisOptimistic's picture


Buy The F*&^ing World War 3

Wed, 02/16/2011 - 15:54 | 967752 Watauga
Watauga's picture

"Camp of the Saints"--coming to a reality near you.

Or is it, "The Road"?

Wed, 02/16/2011 - 18:57 | 968238 walküre
walküre's picture

When Brent sells for $104 and WTI sells for only $84..

How long before the producers are going to shut down their pipelines and divert all sales to Europe and Asia?

Correct me if I'm getting this wrong but isn't this a clear and evident example of how the US government is trying to keep the genie in the bottle?

Oil // the price and the supply of oil are a matter of national security.

Therefore, like any desperate central planning currency diluting government would, the US government manipulates the price downward or at least tries to control the price. This is exactly what killed the USSR and the USSR economy. They starved to death because their currency wouldn't be able to afford the energy they needed to run the combines on the Russian plains.

Europe and Asia are paying the premium of what looks like $20 to the barrel on Brent measured in the same currency.

Tell me if I'm wrong.


For all the Silver bugs out there.. this just came across my desk:

RCMP in Chilliwack, B.C., are investigating the theft of almost $750,000 worth of silver bullion.

Police say two men forced their way into a home in the 10000-block of Imperial Street last Wednesday afternoon and took several thousand ounces of the bullion.

The person at the house during the home invasion was bruised in the scuffle, and could only say he believed the suspects could have been wearing uniforms.

Const. Tracy Wolbeck couldn't say why someone would have that much silver in their home, but adds the amount the owner had doesn't appear to be criminal.

Wolbeck says it definitely appears as if the suspects knew what they were looking for and police delayed the release of the information while they explored other avenues of investigation.

Now she says they're hoping someone with information about the mid-afternoon robbery may come forward.

Wed, 02/16/2011 - 19:32 | 968361 sellstop
sellstop's picture

I hear we are importing more from Canada and the oil sands. This has the effect of causing high inventories in the WTI hub. Low prices here. Europe uses Brent and Saudi oil. Trouble in the middle east may disrupt their supply. High price there. It costs alot to transport oil. But may be worth it at a $20 spread.

Bottom line: the US has a competitive advantage with cheaper oil. This is as we are devaluing the dollar, too.



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