Brent Hits $119.44

Tyler Durden's picture

The energy complex is certainly enjoying discounting the end of quantitative easing, and is doing so in style: Brent briefly touched a multi year high of $119.44, as it prepares to play chicken with the OPEC threat of pumping more oil once it passes the psychological barrier. And crude, despite the well-known and much discussed issues at Cushing, almost passes $108. No matter what anyone says, this is extremely bullish for the economy and (inverse) wealth creation. At this point we are clearly back to 2008 trendlines to see whether oil can keep up with stock, which are back on their trendline to hit Birinyi's target of 2,700 or something within a year. And $300 oil is very bullish too, especially with the nuclear energy business now, well, out of business. At if all else fails it's ok: the Great Chairsatan can just print some more oil.



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aVian's picture

bullish - inflation in check sarc off - somethings going on, the dollar is up too ... tick tock

long juan silver's picture

No decent gold journalism today. What gives?

SheepDog-One's picture

That WTI at $107+ is highly bullish too or something.

aint no fortunate son's picture

look at the freaking RBOB gasoline futures - my 15 minute delayed Bloomberg has them at 314.37 up 3.60 cents... buy retail and GM hand over fist, this is as bullish as it gets!!!!!!!!!!!!

drink or die's picture

nuclear-powered cars, bitches!

SDRII's picture

$ orphaning: Issuing a global reserve currency gives countries some benefits in the short term, but this special status may harm their long-term economic development, China's central bank chief said in a statement on Friday. Zhou Xiaochuan, governor of the People's Bank of China (PBOC), said that the priority in reforming the international monetary system was to ensure it was stable, benefiting all sides - China Daily

FunkyMonkeyBoy's picture

So this affects the economy in a bad way when exactly?

Jeremy Roenick's picture

According to our dubious Sec of the Treasury, it's already priced in.  High oil ain't no thang.

plocequ1's picture

This is bullish for Puch Mopeds ( Im showing my age )

Long-John-Silver's picture

A friend ordered a 30" container full of 125cc motorcycles from Taiwan. He's been selling them at 150% profit and has almost sold out.  He just ordered 2 more 30" containers with a complete parts supply taking up 1/4 space of one of the containers. In my State no motorcycle endorsement is required for 150CC and smaller motorcycles so customers can immediately start riding them.

Dr. Porkchop's picture

A 30" container? Those are some small motorcycles! ;)

Long-John-Silver's picture

Damn fit fingers... 30 foot containers......

On another note, I went an purchased one for myself.

Dr. Porkchop's picture

I've always liked the idea of the efficiency of motorcycles but the thought of wiping out or being crushed by a car have prevented any further thought of acquiring one.

plocequ1's picture

Mopeds were HOT during 1977-80, Then they just vanished like Disco

scratch_and_sniff's picture

Yeah, f*** it, long brent to hedge the cost of filling a tank. I'll be fucked if im working 80 hrs a week to line the pockets of crooks with drills.

ghostfaceinvestah's picture

that was one of the reasons i went long oil when it was in the 30s in March 2009 (though mostly because of Benocide's money printing) - I figured over my life I would consume a lot of oil, either directly or indirectly, 30s was as good a place as any to hedge my future consumption.

scratch_and_sniff's picture

Nice one, i have spells of trading oil, i was long a few times down there, but i must admit its a regret i didnt hold on to any of them. On the whole, i have been caught short oil more time than i care to imagine, not this time though.

GlassHammer's picture

WTI vs. S&P 500

Round 1.


Eally Ucked's picture

Oil usage is not important anymore for US economy. I would like to see index tracing buzz usage, hospitality, resorts, health care, all of them depend on it.

whatz that smell's picture

praise be bernank! may he walk on oil forever!

101 years and counting's picture

"At this point we are clearly back to 2008 trendlines to see whether oil can keep up with stock"

Very much incorrect.  pull up a chart of the 1st 6 months of 2008.  stocks fell 13% while oil went from $100 to $147.

I expect a repeat of this.  Long oil and short equities here.



Id fight Gandhi's picture

But this time it's different. All those new jobs people have mean extra money for everything.

Buy stocks. My fav is price line. Going for 520 today!

spartan117's picture

Looks like Kadafi has the upper hand in Libya, which will require more airstrikes or "boots on the ground".

ghostfaceinvestah's picture

This alone guarantees QE3 won't happen immediately, it puts too much pressure on Benocide, no one believes his bullshit that his money printing is having no effect on commodities.


kaiserhoff's picture

Oil is spiking because Obummer got his ass whooped by a tin pot dictator, who looks and smells like a camel, and whose only friend is Robert Mugabe.  Worst foreign adventure since the Bay of Pigs.  Now we will have two new narco/terrorist states on the Mediterranean. So long Israel.

PY-129-20's picture

My lovely Mercedes :/  - but we can also use our sweet crude to get big explosions.

This  BP tanker exploded just two days ago in a suspicious way and the police is now investigating.

ivars's picture

It seems this feb 13 prediction of oil price  patterns I have been posting from time to time holds pretty well.

We could expect Brent higher then in previous peak, by 5-10 USD ( 125-130 USD).

Than it goes down in mid April just to shoot to new highs in approaching May (135-140 USD).

That should stop QE3 in its tracks-which will cause another temporary downturn in oil price.

All things are let loose in July 2011. Must be some supply disruption, serious this time.




Idiot Savant's picture

Anecdotal observation - since 2008, not only have Americans not moved to more fuel efficient vehicles, they've gravitated to larger vehicles in some cases. Here in Texas, the redneck trend is bigger is better. We're talking F350 Super Duties w/lift kits and big mud tires. 4X4 king cabs are freaking everywhere. Bear in mind, 95% of these are urban cowboys, not work trucks. The short attention span, and backward priorities, of Americans never ceases to amaze me.

Caviar Emptor's picture

I've predicted the imminent return of the land yacht. It's coded in American genes to disregard the fundamentals of energy. It's all about Tomahawks and payoffs.

Long-John-Silver's picture

They only drive them on Friday night.

malek's picture

Since 2008? I think you were about 4 years late with that observation.

cabernet's picture

It's very painful to spend 50 bucks  to fill your tank. People pay it while the economy is good. It also helps to have a working credit card. Should the economy double dip, oil will crash just as it did in 2008. Until then, it is up, up and away! Oil is a grand "E" ticket ride.


scratch_and_sniff's picture

If you can find a way of shipping for less than $3 a gallon to europe, heres to you, you're already a rich man.

Pseudo Anonym's picture

if all else fails it's ok: the Great Chairsatan can just print some more oil.

ok, perhaps oil.  But I bet the shtadlan Reb. Benwhore Shalom Bernookystein cannot print gold.  Or silver for that matter.  And it should be clear I refer to metal.  Not paper gold and/or silver.

goldenrod's picture

It is easy to hedge for expensive oil. Buy Canadian oil & natural gas royalty trusts. They pay fat dividends and do really well when oil is expensive. In addition you are automatically protected from a falling US $. Take a look at: ERF, PWE, PBT, BTE, CVE.

This large Canadian NG producer pays nice dividends: ECA.  Also, consider CHK if you are long term bullish (I am) on NG.

Unfortunately as oil becomes more expensive people will burn more coal. Consider KOL, JRCC, MEE.

For hedging against expensive food consider RJA, POT, MOS.

My favorite precious metal stocks/ETFs are GDX, GDXJ, NEM, RGLD, GG, SLW and CDE. Not many people know that FCX also produces silver in addition to copper.

Good luck to everyone. I am not a financial adviser and this is just my opinion. Nothing I say should be considered investment advice.

Flakmeister's picture

Not bad advice... I have owned or own everything you have listed.

You have missed three keystones in any portfolio, esp. for a US investor


In all my years, these three might well be the best investments I have ever uncovered. Before plunging in, read up on the tax treatment... They work basically the same way as Exxon, you reap the money and don't pay much tax.

goldenrod's picture

I did include PBT and it has exceeded my expectations.  Thanks for the tip on HGT and SBR.

ILoveTheWorld's picture

Are they still trusts? I thought that changed on Jan 1.

Otherwise you're right, and add all the pipeline companies working there, especially the ones with extensions to the west, facilitating export to China. Some of them pay good dividends too.

goldenrod's picture

Some of them (e.g. ERF) changed to corporations but they still pay good dividends.  Which pipeline companies are you talking about?