Daily Oil Market Summary: 11.22.2010

Submitted by Cameron Hanover

Comments

[99er]

Crude

http://99ercharts.blogspot.com/2010/11/crude_22.html

http://www.zerohedge.com/forum/99er-charts

[Dapper Dan]

There's a new supercomputing champ in town

... and it's not the Energy Department

• By Henry Kenyon
• Oct 29, 2010

After spending the last few years aggressively pursuing the title, China has now produced the world’s fastest supercomputer. In an announcement made today at the High Performance Computing advisory council workshop in China, the Tianhe-1A supercomputer has set a record performance speed of 2.507 petaflops. It has a peak theoretical performance level of 4.7 petaflops. A petaflop is one thousand trillion mathematical operations per second.

China has developed a number of machines that have steadily pushed operating speeds to match and supersede the world’s fastest supercomputers, which reside in the United States. In June, the Dawning Nebulae computer, housed at China’s National Supercomputing Center, in Shenzen, reached a sustained operating speed of 1.27 petaflops, putting it in the number two place behind the U.S. Department of Energy’s Jaguar supercomputer at the Oak Ridge National Laboratory. Jaguar has a speed of 1.75 petaflops and a theoretical peak capacity of 2.3 petaflops.

Petaflop Bitches! 

 I was contemplating the ramifications of this article with the just released news on China hijacking web traffic and just shit my britches. Amen!

[Kyron95131]

can someone explain to me how its possible for crude oil to be trading lower?

[Dapper Dan]

Crude Oil Prices.  WTI crude oil spot prices averaged almost $82 per barrel in October, about $7 per barrel higher than the September average, as expectations of higher oil demand pushed up prices.  EIA has raised the average fourth quarter 2010 WTI spot price forecast to about $83 per barrel compared with $79 per barrel in last month's Outlook.  WTI spot prices rise to $87 per barrel by the fourth quarter of next year.  Projected WTI prices average $79 per barrel in 2010 and $85 per barrel in 2011.

WTI futures for January 2011 delivery (for the 5-day period ending November 4) averaged $85 per barrel, and implied volatility - a measure of price uncertainty - averaged 31 percent.  This made the lower and upper limits of the 95-percent confidence interval for January 2011 contracts $69 per barrel and $103 per barrel, respectively, for WTI delivered in January 2011.  Last year at this time, WTI for January 2010 delivery averaged $80 per barrel and implied volatility averaged 41 percent, with the limits of the 95-percent confidence interval at $61 per barrel and $104 per barrel.

[Kyron95131]

lol i didnt need you to repost the article... i read the article and thats why asked the question!

the only thing im coming up with was a sell off due to peoples anticipation of a volatile market which happen to just coincide on a holiday week making the appearance that gas is going down and everything is fine in the world for anyone who's driving someplace this week for thanks giving.

[jdrose1985]

Basically because the QE2/2010 recovery lie all you clowns believed is coming to an end.

600 Billion dollars? More than that moves thru the NY Fed by the time Ben takes his morning shit.

[Pat Shuff]

Accounting Method Sucks Up Oil

22 November 2010
The Wall Street Journal

"It's not any huge surge in demand that's causing the drawdown," said a spokesman for a large refiner that is reducing inventories for tax reasons.
Companies usually reduce stocks by importing less oil, then drawing on inventories to refine into fuel. Last week, oil imports hit an 11-month low, the EIA said.
The refiner, like much of the oil industry, uses a form of accounting called "last in, first out," or LIFO, to value their inventories. The practice allows a company to claim each barrel of oil they sell was the most recent one purchased. That creates an incentive to lower end-of-year inventories when prices climb because the more expensive oil is the "first out," allowing the remaining oil to be taxed at a lower rate.

http://kbkee.blogspot.com/2010/11/accounting-method-sucks-up-oil.html

'can someone explain to me how its possible for crude oil to be trading lower?'

Inventory is being drawn down reducing oil demand on the open market,

inventory rebuild after Jan1.