Brent Touches $120 Overnight After Chinese Oil Facilities In Libya Attacked, Bombay Stock Market Plunges

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Thu, 02/24/2011 - 08:26 | 992274 eigenvalue
eigenvalue's picture

The oil facilities of a rogue country were attacked by the mobs of another rogue country.

Thu, 02/24/2011 - 08:27 | 992275 wandstrasse
wandstrasse's picture

did somebody estimate/calculate how much of the price is supply/demand and how much is speculation?

Thu, 02/24/2011 - 08:31 | 992283 vxpatel
vxpatel's picture

Are you writing a PhD? Why does it matter? Oil is up and going higher...Which counteracts our noble hero's efforts to print us out of recession and into oblivion.

Thu, 02/24/2011 - 09:46 | 992458 fx
fx's picture

we don't write PhDs over here any more, don't ya know? we just recycle, copy and paste other people's stuff. just call up our defense minister if you need a tutorial on that.

Thu, 02/24/2011 - 08:34 | 992288 eigenvalue
eigenvalue's picture

The US government is said to be suppressing the WTI, which leads to the unusual spread between WTI and Brent. The suppression scheme is perhaps another form of speculation but I don't think anybody knows how large the scheme is.

Thu, 02/24/2011 - 09:05 | 992345 Pee Wee
Pee Wee's picture

I do - all of it.

Thu, 02/24/2011 - 11:03 | 992790 hardcleareye
hardcleareye's picture

NOT a suppression scheme.....  it's a grand cluster fuck (typical oil patch pipeline constraint, aging equipment, refineries offline and pipeline constraints to refineries with spare capacity, new production from the Bakkan's coming on line, new pipeline from Canada etc etc....) once again a typical oil patch cluster fuck, the government not involved in this one.

 ZH has beat the shit out of this issue a few days ago, pull it up and read or just read this

http://www.theoildrum.com/node/7519

Thu, 02/24/2011 - 08:49 | 992318 BeerGoggles
BeerGoggles's picture

1 buyer = 1 seller.

It is all supply and demand

Thu, 02/24/2011 - 09:09 | 992346 Pee Wee
Pee Wee's picture

All printing money.  

I'm sure you think CDS's are 1:1, and no vapor, too.

Your handle is appropriate for sure.

Thu, 02/24/2011 - 09:24 | 992386 cossack55
cossack55's picture

Wow. Talk about "old school". LMFAO

Thu, 02/24/2011 - 14:44 | 993986 h3m1ngw4y
h3m1ngw4y's picture

the dumb speculator argument. without speculators there would be no demand and supply because there would be no liquidity. you will find out in due time. its all about liquidity

Thu, 02/24/2011 - 08:28 | 992277 vxpatel
vxpatel's picture

300 BIL?

That's not peanuts, isn't Ben's goal 600 BIL?

OUCH...that's going to hurty hurt hurt...

Thu, 02/24/2011 - 09:21 | 992373 101 years and c...
101 years and counting's picture

LMAO.  You really think a $1 increase in oil wipes out $100B in GDP?

If thats the case, the rise in oil this week alone has wiped out 1.5Trillion, or 10% of GDP.  And, since the bottom in 2009, the $70 rise in oil has wiped out 1/2 of the US GDP.  Just a stupid theory that has zero basis in reality.

Thu, 02/24/2011 - 10:04 | 992510 Quaderratic Probing
Quaderratic Probing's picture

Whats 300 points worth on the market compared to GDP?

Thu, 02/24/2011 - 08:28 | 992278 johnQpublic
johnQpublic's picture

define rogue

 

 

does the US also fit your definition?

is there a country that does not fit your definition?

Thu, 02/24/2011 - 09:24 | 992388 cossack55
cossack55's picture

Iceland.

Thu, 02/24/2011 - 08:32 | 992281 The Axe
The Axe's picture

don't fear just get long PCLN....discounted hotel rooms in Libya...beautiful coastline.  on fire but beautiful.... 

Thu, 02/24/2011 - 08:31 | 992282 Duuude
Duuude's picture

johnQpublic

 

+300B

Thu, 02/24/2011 - 08:32 | 992285 SashaBelov
SashaBelov's picture

Well, yesterday Cramer was screaming that USA has enough oil, so price of WTI  shouldn't be rising despite record wti/brent spread. It was such a joke. I guess we need another 10$ jump in oil and 5% dip in stocks to calm him :)

He is trend rider when stocks are rising and always such a contrarian when markets are collapsing. Ladies and gentlemen, enjoy Jim Cramer at his best:

http://www.cnbc.com/id/15840232?video=3000007178&play=1

Thu, 02/24/2011 - 08:34 | 992291 MiningJunkie
MiningJunkie's picture

Did you guys hear that moron on CNBC just now? CQ asks him if the market is vulnerable given the shifting global landscape and he says "They still have to sell oil to US!!!! We are the customers!" Doesn't this moron know that the bulk of crude imported into the U.S. comes from Canada? And that if regime change occurs in Saudi, the U.S. Fleet base is toast. Fucking morons are everywhere.

Thu, 02/24/2011 - 09:46 | 992456 StychoKiller
StychoKiller's picture

The status quo has its defenders  and denial seems to be winding around the entire planet these days!

Thu, 02/24/2011 - 10:52 | 992720 hardcleareye
hardcleareye's picture

Canada exports 2,510 thousand barrels per day to the United States, of a total crude oil imports of 8,608 thousand barrels per day.  Thats NOT a "bulk"..........

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

Thu, 02/24/2011 - 08:36 | 992292 Math Man
Math Man's picture

This is not good news.  But on the flip side, can't the other OPEC nations just up production to cover the missing supply? 

Even though Lybia's oil is higher in quality, it seems that the move up in the price is not really justified here.  I find it hard to see how oil can stay @ $120 for long.

I know we are dealing with a Mad Man, but destroying the oil fields leaves him with an econmically crippled country, even if he is able to regain control. 

Thu, 02/24/2011 - 08:38 | 992301 SashaBelov
SashaBelov's picture

Ever heard about spreading unrests? About shaking pants of saudis royal familly? About probably overstated excess capacity?

Thu, 02/24/2011 - 09:10 | 992351 FrankIvy
FrankIvy's picture

Math Man wrote: But on the flip side, can't the other OPEC nations just up production to cover the missing supply?

Math man - there is no way for other countries to up production, IMO, because everybody is pumping close to max.  Sure, there is a bit here and a bit there that can be added, but overall, the "spare capacity" numbers are all bullshit promulgated to keep everybody in line.

Thu, 02/24/2011 - 09:37 | 992421 jmcadg
jmcadg's picture

If he sabotages the oilfields, it's a last gasp fuck you, he won't be bothered about a broken country. He's arrogant enough to do it just to piss everyone off. If only that were the limit to the consequences.

Thu, 02/24/2011 - 08:35 | 992293 overmedicatedun...
overmedicatedundersexed's picture

not to worry:  o bum a's finance advisor stated yesterday: "raising oil prices will not hurt the recovery!"

Thu, 02/24/2011 - 08:40 | 992294 gwar5
gwar5's picture

Fertilizer and food transport costs just went up too.

Global Warming unexpectedly not involved. Whew!

Great time for O'Bamm to lift the Gulf moratorium.

 

Thu, 02/24/2011 - 08:36 | 992295 Crisismode
Crisismode's picture

$160. oil

$60. silver

$1800. gold

Coming to your local theatre this June.

Thu, 02/24/2011 - 08:37 | 992297 Alex Lionson
Alex Lionson's picture

Who cares, Ben is sure he will print and distribute enough FRNs for American people to buy gas and he is also 100% confident that it will not trigger even a slightest inflation. So, sleep well, dear comrades. 

Thu, 02/24/2011 - 08:39 | 992300 THE DORK OF CORK
THE DORK OF CORK's picture

Does anybody know where the 101rst or 82nd airborne division are at the moment - I would not be surprised if they are in Afghanistan now - given how far US forces are stretched.

Thu, 02/24/2011 - 08:48 | 992317 overmedicatedun...
overmedicatedundersexed's picture

101st (my old unit 69-71) and 82nd have some over seas posting, where I'll let you guess Dork.

something I find more interesting: SF teams are very active in South America, as I have friends in those units I can not be more specific...not related to oil I am sure.

Thu, 02/24/2011 - 09:03 | 992344 THE DORK OF CORK
THE DORK OF CORK's picture

Yes its atrocious military planning to project these forces into sustained campaigns - has any of these Bozos played the game of chess ?

Its as if they want a failure..............................

Thu, 02/24/2011 - 09:38 | 992425 Canucklehead
Canucklehead's picture

...and every vehicle passing a pylon looks the same... to the pylon...

Thu, 02/24/2011 - 11:58 | 993142 reader2010
reader2010's picture

I don't where they are but they will be deployed to guard those FEMA camps pretty soon.

Thu, 02/24/2011 - 08:40 | 992305 LMAO
LMAO's picture

US GDP has just lost another $300 billion in 12 hours, wiping out the gains all the gains in the last quarter.

I have to ask, what gains are we talking about?

The paper gains due to creative accounting?!

Show me the fucking gains!

LMAO

 

Thu, 02/24/2011 - 08:44 | 992307 Cash_is_Trash
Cash_is_Trash's picture

we believe the high level of global inventory could easily accommodate this for more than 100 days and OPEC spare capacity could easily absorb the entire loss if needed.

Bullshit. You can certainly accomodate when the market prices oil at over $150, then many people will stop consuming so much.

Although we still see contagion to the large energy producers in the Gulf as relatively low, the stakes associated with further contagion are now much higher, which creates even further upside risk to our price forecasts.  

You'll see some contagion all right! How about those protestors getting shot in Bahrain? Or the shit going down in a month in the Kingdom?

 

These protests are not isolated, the whole damn world is waking-up.

Thu, 02/24/2011 - 08:45 | 992311 bob_dabolina
bob_dabolina's picture

The swiftness is incredible.

Thu, 02/24/2011 - 09:07 | 992347 FrankIvy
FrankIvy's picture

Bob wrote: The swiftness is incredible.

You've captured my sentiment as well.  I've been waiting for the oil pop since 2005 - thought I had it in 2008.  Now that it's here, it's coming extremely quickly.  Not the "see I was right" happy feeling I'd expected.  More of a "what will diesel cost for spring plowing" feeling.  Not good.

Thu, 02/24/2011 - 08:48 | 992316 John McCloy
John McCloy's picture

In the long history of mankind time is telling us it has been far too long that an all out global war has been prevented. There are entirely too many people, far to few resources and far too many lies and tension amongst friends. 

    Elite mentality has become increasingly detached from the people in every nation and very prominently here in the U.S. where our blue bloods believe they can stuff their pockets using us and our grandchildren's economic liberty. Even yesterday the disgusting display of hubris out of the Treasury department underscores their detachment. They will never admit causation but privately they are beginning to ask, "What happens to us when the most armed, technologically advanced and supposedly free civilization of American Snookites begins to revolt?"

  When their time comes Nuremberg will not even hold a candle to this tribunal.

Thu, 02/24/2011 - 09:11 | 992352 Josh Randall
Josh Randall's picture

+10000000 -- Here Here

Thu, 02/24/2011 - 09:28 | 992399 cossack55
cossack55's picture

What is the pay scale for executioner.  Forget it, I'll do it for free.

Thu, 02/24/2011 - 12:03 | 993174 reader2010
reader2010's picture

But sadly the fact is that too many of us don't want to know or don't give a shit as long as they can tweet or facebook their fart to entertain themselves. 

Thu, 02/24/2011 - 08:51 | 992320 Randy Goodnight
Randy Goodnight's picture

I'm sorry, why aren't we drilling for oil off the U.S. coast?

Thu, 02/24/2011 - 08:53 | 992323 bob_dabolina
bob_dabolina's picture

Liberals enjoy the high prices.

 

Thu, 02/24/2011 - 08:58 | 992337 FrankIvy
FrankIvy's picture

Bob_Dabolina wrote: Liberals enjoy the high prices.

They're all liberals now.

And do some homework - the amount of oil available in the U.S. by drilling more is virtually irrelevant to the world oil situation, and would affect price little if any.  The drilling "debate" in the U.S. is a red herring meant to distract small minded people who still believe there's a difference between "left" and "right" in the "two" party U.S. system.

Thu, 02/24/2011 - 09:13 | 992350 bob_dabolina
bob_dabolina's picture

It's extrememly relevant.

Ramping up production in the Gulf, of the shore of California, Alaska, etc would help push prices down.

And no, it's not a "left vs. right" red herring.

http://www.sandiegogasprices.com/Price_By_County.aspx?state=CA&c=usa

Republican (red) states have lower oil prices because they are more oil friendly. Democrats want that shit regulated and taxed up the ass. Also, Obama has most domestic oil drilling on lockdown right now.

Thu, 02/24/2011 - 10:30 | 992603 hardcleareye
hardcleareye's picture

"Obama has most domestic oil drilling on lockdown right now."

In light of the drilling going on in the Bakkan (it's in the Midwest in case you are confused) that is a truly boneheaded comment.  And just so we are clear I despise Obama.......

Thu, 02/24/2011 - 10:35 | 992635 powersjq
powersjq's picture

I agree that there's a difference b/w the parties, though it seems less significant than it once was.  But I don't see why anyone would want to be "friendly" to the profligate use of oil.  In the first place it's dangerous and dirty, and in the second place, it's extremely precious.  (Takes millions of years to concentrate all that solar energy into one gallon of crude.)  Not only are the oilmen polluting our communities, they're depriving our progeny of their fair share of petroleum wealth.

Thu, 02/24/2011 - 09:15 | 992361 Snidley Whipsnae
Snidley Whipsnae's picture

BP was drilling off the US coast until...tshtf in the Gulf. What short memories we have.

Drilling is a good idea if it is done with SAFETY as first priority.

Do you believe that the azz hats running BP or those that replaced them have learned a damn thing from their FU?

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