Daily Oil Market Summary: 1.12.2011

Submitted by Cameron Hanover

Comments

[Cdad]

In oil news, criminal syndicate Wall Street bankers propped up the drunken and pregnant little Miss Euro while shorting the USD stud man using freshly printed Ben Bernanke bananas...because that was the best and quickest way to keep the lights on at L. Blankfein Wildest Dreams Park [oil futures] for one more day.

Efforts to keep those lights on were enhanced by the embarrassment of a company called BP, aka the Wold's largest petroshrimp maker, and its stupidity in the handling of oil pumped through the Alaskan Pipeline...for which L. Blankfein sent the a lovely thank you note.

As for the price of oil as it relates to supply and demand...oil continues to be priced for stupid...if not priced for dotcom.  And Average Joe quietly takes his daily beating at the gas the pump.  Happy New Year, Average Joe.

With love...

Wall Street

[Cdad]

Here's an idea.  Why don't we move up the delivery schedule on oil futures contracts to once a week?  Talk amongst yourselves.

[Cdad]

Maybe in addition to this idea, another idea would be to require much more capital to secure oil futures contracts...since oil pretty much makes our entire freakin' world go 'round.  Maybe the slimiest creep in the room with the least cash should not be able to throw our entire economy into a freakin' tizzy fit every other day.  Talk amongst yourselves.

[CrashisOptimistic]

Or how about oil extraction from the ground keep up with the growth in consumption taking place in:

1) Oil producing countries like Saudi Arabia, who uses it to make electricity or

2) China and India 

Given that this seems to be impossible, perhaps it's just better to start eliminating points of competing consumption with the military and get it over with.  Every drop of oil China consumes is going to cause an American trouble someday.

[Drag Racer]

so they had an issue with the pipeline AND in the oil sands at the same time they had 'claimed' prices would rise, how convenient.

I don't believe the leak.

[Flakmeister]

What does the WTI-Brent spread gotta do to get some love around here?

[Cdad]

What does the WTI-Brent spread gotta do to get some love around here?

Experience an actual recovery in demand [and by actual I mean the kind of demand that causes people to use more fuel...not the demand that the criminal syndicate refers to when defending inexplicable action at L. Blankfein Wildest Dreams Park [futures].

[CrashisOptimistic]

The dirty little secret of the world is that there IS real demand growth from the quietest of places: the producers itself.  When a country subsidizes domestic consumption and sells gasoline at 30 cents a gallon, then any time there is any decision to be made about energy source for any project, gasoline will be chosen.

That's why those generators on Iraqi street corners selling electricity to the city block run on gasoline.  That's why Saudi Arabian oil CONSUMPTION is sharply increasing.  All producers (and even former producers) slap subsidies on gasoline and once those are on, it's pretty hard to get them off.  

When it's cheap, the domestic population will use it for anything they can think of.

You want to find demand?  Look for it outside the US -- in oil countries.

[snowball777]

http://www.eia.doe.gov/cabs/iraq/oil.html

They use it because it's freakin' there.

[CrashisOptimistic]

Read your own link carefully.  They produce only 2.4 mbpd and can't meet their own domestic consumption demands of 600K bpd, which is going to rise sharply in upcoming years.

Their plans are absurd and everyone knows it.  Their BS about 12 mbpd production in about 5 yrs is the stuff of insane asylums.  They will be very lucky to produce just 5 mbpd 10 years from now.  It takes that long to lay all the pipe, get investment budgets approved, get the seawater onsite to pump down AND overcome the reduction of production of the 2.4 mbpd presently producing fields that are dying (pumping for 40+ yrs).  That's assuming another Apocalypse doesn't hit before then.