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Oil Goes Berserk In Electronic Trading As WTI Passes $98

Tyler Durden's picture





 

As Zero Hedge advised in early January when the severity of the Maghreb revolution was made all too clear to anyone not willing to stick their head in the CNBC sand, oil could well be the buy of a lifetime ahead of a downward spiral of unprecedented geopolitical proportions. Sure enough, today alone, WTI (April) has surged from $90 yesterday to over $98 in electronic trading (see below). Either this is some computer gone haywire in the closed session, or when America wakes up tomorrow we may be on the verge of another flash crash. As for Brent, it passed $108.50. As a reminder, and people forget this all too readily, each dollar jump in crude wipes out $100 billion in US GDP. That means that at face value, today's move in the commodity complex, may have taken out as much as 5% of annualized GDP when fully processed through the economy!

WTI (per netdania):

Brent:

And some crude observations from an otherwise calm Reuters:

Brent crude oil
prices hit $108 a barrel for the first time since 2008 on Monday on
fears that spiraling violence in Libya could lead to wider supply
disruptions from the OPEC member.

U.S. oil prices led the rally
to jump by more than $5, the most in over two years, as traders also
rushed to cover short positions in the key Brent/WTI spread, which had
blown out to a record $16 a barrel. The April spread narrowed to $10
during the day, but widened to over $12 in after-hours trade.

The
focus was on deadly clashes in Libya, where one oil firm was shutting
down some 100,000 barrels per day (bpd) of production and others
evacuated staff. The leader of the Al-Zuwayya tribe threatened oil
exports to the West would be cut off unless authorities stopped
violence.

"The market is on edge
about the potential for Middle East and North Africa supply
disruptions," said Mike Wittner, head of commodities research, Americas,
at Societe Generale.

"If you've
got reports that actual disruptions are starting to occur, it's going to
have a supportive impact. A lot of it is high-quality crude and that is
important as well."

The
increasingly violent protests that appeared to put Muammar Gaddafi's
four decades of rule in jeopardy were the realization of weeks of
mounting concerns that Egypt-inspired unrest would seep into nearby oil producers.

Brent
oil futures, which have climbed more than $10 this year largely due to
the increasing geopolitical risk premium, jumped $3.22 a barrel, or 3.2
percent, to settle at $105.74 a barrel. They jumped another $2 to trade
as high as $108 in after-hours dealing, the highest since September 4,
2008.

The March U.S. crude oil
contract, which expires on Tuesday, surged $5.22 a barrel to trade at
$91.42 a barrel in late-afternoon activity -- the highest in two weeks.

Overall
trading volume was less than one-third the 30-day average due to the
U.S. Presidents Day holiday, and the U.S. market won't issue an official
settlement until Tuesday.

The
more-active April contract jumped as much as $5.75 to a high of $95.47 a
barrel, at one point narrowing the Brent/WTI contract by nearly $3 to
$10 a barrel as traders covered short positions built up as the spread
ballooned from about $3 in January to a low of $16 last week.

Brent's after-hours rally forced the spread back out to $12.40 a barrel.

LIBYA UNSETTLES

In
Libya, scores were killed in anti-government protests as one of the
region's bloodiest revolts hit Tripoli for the first time, while army
units defected to the opposition and Gaddafi's son vowed to fight to the
last man standing.

On Sunday,
Shaikh Faraj al Zuway, the leader of the Al-Zuwayya tribe in eastern
Libya, told Al Jazeera: "We will stop oil exports to Western countries
within 24 hours" should the violence not stop.

Ninety
percent of Libyan oil exports come from the eastern region of
Cyrenaica, epicenter of the revolt, and unrest there could pose a graver
threat to oil supplies than in other nations if separatists target
infrastructure and look for a bigger slice of revenues, analysts say.

"Libya
is a significant producer and exporter of good quality crude oil, and
threats by the tribal leader to stop production are worrisome," said
Christophe Barret, an oil analyst at Credit Agricole Corporate and
Investment Bank.

 


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Mon, 02/21/2011 - 17:16 | Link to Comment Ragnarok
Ragnarok's picture

Consumer spending and credit card use will be up! BTFR! 

 

Clearly this surge in price is due to sudden EM demand from strong growth. 

Mon, 02/21/2011 - 17:19 | Link to Comment DonnieD
DonnieD's picture

EM's have sophisticated energy diets now.

Mon, 02/21/2011 - 17:38 | Link to Comment cswjr
cswjr's picture

Those tanks, APC's, 'copters, jets, etc. take lots of petroleum.  Heck, just think about how much (Q/G/K)adhafi is burning on his Caracas junket.

Mon, 02/21/2011 - 17:49 | Link to Comment disabledvet
disabledvet's picture

and now you know why oil is soaring.  "Libya" is a symptom and in no way causing the oil price to soar.  It's the "slight issue of various militaries" needing fuel i think.

Mon, 02/21/2011 - 17:57 | Link to Comment monopoly
monopoly's picture

Ragnarok, LOLOL. "strong growth"...gotta luv it. Great board.

Ya know all, as strange as this seems to 90% of America, I think it is safe to say that none of us are very surprised, amazed or bewildered with what is going on, and when gold reaches 1,500, and oil is 110 well ok then, just part of the process that we are aware of.

The sad part is most Americans have no idea what the "dollar" means outside of the fact it buys an Ipad, and most have no idea of POMO, derivatives, or monetization. And few govt. workers get it that it is over, high pensions, no health care costs, free meals for govt. workers. It is Over.

But when gas is $4.50 a gallon and bread is $5.50 a loaf. Then maybe, just maybe, "the March of Millions here."

Mon, 02/21/2011 - 19:49 | Link to Comment 4ndy
4ndy's picture

would be surely interesting to see

Mon, 02/21/2011 - 20:04 | Link to Comment Oleander
Oleander's picture

On local news tonight (RI station)  they stated signs that economy is picking up: 

underwear sales are up as are sales of Venti Lattes

Everything is fine - as you were - nothing to worry about.

Mon, 02/21/2011 - 21:18 | Link to Comment Yen Cross
Yen Cross's picture

#clh WTI march contract is currently 92.56 on that little spike. Thanks fro the interuption Ragnarok.

Mon, 02/21/2011 - 17:14 | Link to Comment AndrewJackson
AndrewJackson's picture

Surely this is bullish for the oil companies! Oh wait....whose that guy in Libya again?

Mon, 02/21/2011 - 17:24 | Link to Comment Michael
Michael's picture

I love the smell of pain on Tuesday morning. I can smell it from here.

Mon, 02/21/2011 - 19:15 | Link to Comment I think I need ...
I think I need to buy a gun's picture

Im just glad we have been concentrating on otc derivitives the last decade rather than making sure out big tractor trailers were outfitted with natural gas engines.

what happens when our big truck companies go bankrupt from 7 dollar gas will we be hunting deer?

Mon, 02/21/2011 - 19:18 | Link to Comment I think I need ...
I think I need to buy a gun's picture

now i know why soros was buying delta airlines last week, just like peter schiff said circa 2007 they airlines will all be bought out by foreigners because they won't be able to afford gas in us dollar terms

Mon, 02/21/2011 - 17:14 | Link to Comment Bodhi
Bodhi's picture

Would now be a good time to top off the Suburban before the price hike Tuesday?

Mon, 02/21/2011 - 17:25 | Link to Comment Moe Howard
Moe Howard's picture

Hold off - I suggest buying the dips.

Mon, 02/21/2011 - 18:52 | Link to Comment quasimodo
quasimodo's picture

No shit Sherlock, only difference being mine is a Yukon...ugh. Oh well, the Taurus will be getting more miles as long as we are not snowed in.

Mon, 02/21/2011 - 20:12 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Yes, fill the suburban and every can of gas that you can SAFELY store.

Think of it as more insurance... You might need to drive an ailing family member/friend to an ER when emergency responders are short fuel.

Mon, 02/21/2011 - 17:15 | Link to Comment RobotTrader
RobotTrader's picture

Heh, will be fun to see what the XRT does tomorrow....

Mon, 02/21/2011 - 17:20 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

as mentioned last friday, what about that cat at the fed who advised us that rising oil was gdp positive.

Mon, 02/21/2011 - 18:18 | Link to Comment sun tzu
sun tzu's picture

He must have been talking about oil exporters like Saudi Arabia and Canada

Mon, 02/21/2011 - 20:31 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

maybe so.

Mon, 02/21/2011 - 17:22 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

LA drivers will be luxuriating in $5 gas. Get your bus pass out Robo. LOL...

Mon, 02/21/2011 - 17:29 | Link to Comment Michael
Michael's picture

LA Libs want higher gas prices. WTF?

Mon, 02/21/2011 - 17:50 | Link to Comment yabyum
yabyum's picture

Libs everywhere are driving hybrids and electrics, best top off the f-250 tonight!

Mon, 02/21/2011 - 18:53 | Link to Comment quasimodo
quasimodo's picture

+  GULP

Tue, 02/22/2011 - 00:58 | Link to Comment born2bmild
born2bmild's picture

I didn't know you had to be a liberal to not like US dependence on foreign anything especially oil (wars). The Gulf of Mexico comes to mind, aside from the fact it's expensive and bad for your engine if it's gasoline you are burning.

 

Mon, 02/21/2011 - 17:25 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Can't see how higher oil prices can benefit retailers, really... 

Mon, 02/21/2011 - 19:11 | Link to Comment snowball777
snowball777's picture

Bicycle retailers?

Mon, 02/21/2011 - 17:26 | Link to Comment HamyWanger
HamyWanger's picture

 

It will keep pushing higher, IMO. 

This jump in oil (+10.62% in one day, quite unusual) is the perfect sign the global economic recovery is accelerating. 

If there is no demand, there is no jump in oil. 

So there must be some pretty good demand out there.

I've converted the rest of my cash portfolio in AAPL and NFLX stocks. 

 

Mon, 02/21/2011 - 17:37 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

hat tip to ya hamy. you sucked me in and buffaloed me a couple of times to your brand of humor. i didn't realize you were channeling harrywanger's idiocy, playing him for the fool until late in the game. took me a while to see the humor.

Mon, 02/21/2011 - 17:48 | Link to Comment Troll Magnet
Troll Magnet's picture

personally, i'm stocking up on Colavita Extra Virgin Olive Oil.

yes.  i'm taking physical delivery.  and yes, i CAN eat oil!

Mon, 02/21/2011 - 19:19 | Link to Comment mick_richfield
mick_richfield's picture

...and you can freeze it.

Tue, 02/22/2011 - 08:43 | Link to Comment whatz that smell
whatz that smell's picture

for the love of junk! let hamy up for some air!

Mon, 02/21/2011 - 17:51 | Link to Comment thetruth
thetruth's picture

yes this is about demand and not supply

Mon, 02/21/2011 - 18:10 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Funny as always, hamy.

Mon, 02/21/2011 - 17:16 | Link to Comment velobabe
velobabe's picture

wish i knew more about this, but you were predicting this.

do you have crystal balls, tyler?

Mon, 02/21/2011 - 17:24 | Link to Comment bingaling
bingaling's picture

Dave Chapelle is looking to get a pair also

http://www.youtube.com/watch?v=7sn1RUjbL1g

 

 

Mon, 02/21/2011 - 19:04 | Link to Comment velobabe
velobabe's picture

i just had the funniest hour of my life†

Mon, 02/21/2011 - 17:44 | Link to Comment Former Sheeple
Former Sheeple's picture

TD's great, great, great-grandfather was pretty good at predicting shit as well, they called him Nostradamus!

Mon, 02/21/2011 - 18:34 | Link to Comment KTV Escort
KTV Escort's picture

luv your ID

Mon, 02/21/2011 - 17:16 | Link to Comment equity_momo
equity_momo's picture

Anyone remember the 2008 top in commodities? This is the beginning of the end. Crack up boom. Blow off top. Head fake. Take your pick.  Global economy is going to puke in its mouth again as the pass through costs tip us back into depression.

Mon, 02/21/2011 - 17:49 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

That is what happened in the summer of 2008, and once the meltup started it was hard to see how it was going to end.  "Never under $100 a barrel again." 

Mon, 02/21/2011 - 21:58 | Link to Comment John Wilmot
John Wilmot's picture

Agreed, it's getting more obvious by the day that (hyper)inflationairy depression has been the right call all along. I see it as inevitable unless The Bernank stops monetizing treasuries, in which case the U.S. government will default. So...?

Mon, 02/21/2011 - 22:29 | Link to Comment StychoKiller
StychoKiller's picture

But, but...the Decepticrats say this is no time to cut spending because the Economic Recovery ™ is still fragile, while the Republicons are trying to cut the Federal Budget tree with a weed trimmer -- Bizarro world continues to spin on its axis...

Mon, 02/21/2011 - 17:16 | Link to Comment drink or die
drink or die's picture

Topping off my cars today (should have done it last week)..  Fortunately, this is already priced into the market, so you can bet the DJI will close up at least 1% tomorrow.

Mon, 02/21/2011 - 17:19 | Link to Comment Moe Howard
Moe Howard's picture

It was already priced in on Friday, they knew today was a holiday. Up 2% tomorrow.

Mon, 02/21/2011 - 17:16 | Link to Comment Michael
Michael's picture

How much oil can a bankrupt US and the world buy again?

Wall Street Silver Gold Theft and World Economic Collapse

http://www.youtube.com/watch?v=WI8dfFN7H1w

Mon, 02/21/2011 - 17:18 | Link to Comment HamyWanger
HamyWanger's picture

"Flash crash"??? 

This jump in oil is very good news for equities. It means the recovery is accelerating, and demand in emerging markets gaining strength. 

Mon, 02/21/2011 - 17:21 | Link to Comment equity_momo
equity_momo's picture

I know youre baiting Wanger2.0 but that was exactly the sales pitch the Goldmanites used in 2008. Price action makes headlines and all that - gotta fit a narrative to the squiggly lines! 

Fast forward to "Oppps , the lines going down at 45 degrees , what does that mean"?

Mon, 02/21/2011 - 19:22 | Link to Comment mick_richfield
mick_richfield's picture

It means you will feel better if you rotate the graph 90 degrees counter-clockwise.

Mon, 02/21/2011 - 17:24 | Link to Comment lj_nissen
lj_nissen's picture

I sense the irony!

Mon, 02/21/2011 - 17:25 | Link to Comment HonestJohn
HonestJohn's picture

I am laughing out loudly...+1

Mon, 02/21/2011 - 17:34 | Link to Comment Uncle Remus
Uncle Remus's picture

LOL

Oh absolutely.

Mon, 02/21/2011 - 18:05 | Link to Comment CPL
CPL's picture

Fucking trolls

Mon, 02/21/2011 - 17:18 | Link to Comment fuggetaboutit
fuggetaboutit's picture

This actually seems pretty serious, someone should cut rates quick before this turns into a big problem

Mon, 02/21/2011 - 17:19 | Link to Comment Ragnarok
Ragnarok's picture

someone should cut rates quick before this turns into a big problem

 

+ ZIRP

Mon, 02/21/2011 - 17:19 | Link to Comment HamyWanger
HamyWanger's picture

Cut rates???

As I've previously said, most people here assume that inflation is a bad thing. Actually, it is quite the opposite. As Dr. Krugman Ph.D. showed, the more inflation, the better

If the FED manages to create high inflation in the economy (>30%) the crisis will be definitely eradicated. 

It is a perfect time to buy stocks. 

Mon, 02/21/2011 - 17:24 | Link to Comment jowenchrist
jowenchrist's picture

does anyone really know what planet hairy weener banger actually hails from ?

Mon, 02/21/2011 - 17:28 | Link to Comment HonestJohn
HonestJohn's picture

If you read this blog regularly, you would know

Mon, 02/21/2011 - 18:36 | Link to Comment Fred C Dobbs
Fred C Dobbs's picture

Perhaps his own?  A private planet CNBC.  But maybe he is right.  The future will come, no need to argue now about what it will be.  

Mon, 02/21/2011 - 22:31 | Link to Comment StychoKiller
StychoKiller's picture

I keep putting forth the theory that Wanger is really an A.I. program...

Mon, 02/21/2011 - 17:27 | Link to Comment plocequ1
plocequ1's picture

The Fed will not cut cut rates. The market will go up tomorrow. Dont ask me for a link or proof.

Mon, 02/21/2011 - 17:20 | Link to Comment Cleanclog
Cleanclog's picture

oops.  Can't cut rates any lower really.  Fed will have to just start charging savers.

Mon, 02/21/2011 - 17:36 | Link to Comment cxl9
cxl9's picture

Nominal rates may (but maybe not) be zero-bound but the real interest rate is not, and that's what matters. 1% interest rate and 10% currency depreciation is a -9% real rate. No reason that can't be pushed down to -20% or -30%. Essentially, this is charging savers, which is certainly part of the plan. Quick! Spend your dollars before their value falls further!

 

Mon, 02/21/2011 - 18:59 | Link to Comment Cleanclog
Cleanclog's picture

So true!

Mon, 02/21/2011 - 20:19 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Arrest the fall of your dollars purchasing power by trading dollars for PMs...

Mon, 02/21/2011 - 17:46 | Link to Comment LMAO
LMAO's picture

oops.  Can't cut rates any lower really.  

"Fed will have to just start charging savers."

 

Sorry to piss on your bonfire but the Fed has been doing that for quite some time now, although it might not be that obvious.

LMAO

Edit: I just got HFFastposted by somebody with a ZH colocation

Mon, 02/21/2011 - 17:42 | Link to Comment cartonero
cartonero's picture

My effin bank already does that.  My last statement had a $15 "inactivity fee" because I haven't used the account in a while.  Closing it out tomorrow.

Mon, 02/21/2011 - 17:53 | Link to Comment LMAO
LMAO's picture

WTF, are you shitting me?

So you are paying them for letting them use your money . . . .

"Aaah WTF, He's not using it so let's just relieve him of the burden of having money in the account"

 LMAO

Mon, 02/21/2011 - 18:07 | Link to Comment CPL
CPL's picture

Negative interest rates...interesting.  Start paying people to bank with them.

Mon, 02/21/2011 - 17:18 | Link to Comment traderjoe
traderjoe's picture

Wow. The end of fiat just got a step closer. Be surprised to see this on the msm news tonight.

Mon, 02/21/2011 - 17:18 | Link to Comment reader2010
reader2010's picture

Goldman Sacks said it would be over $200 in a short while back in 2008.

Mon, 02/21/2011 - 17:19 | Link to Comment Carl Spackler
Carl Spackler's picture

Time to go long on coal and short Obama !

 

 

Mon, 02/21/2011 - 17:19 | Link to Comment Cleanclog
Cleanclog's picture

Parabolic - and the price of a gallon in the US hits $4 before the summer.  The real protests have yet to get underway in Europe and here, but they're coming.  

Mon, 02/21/2011 - 17:22 | Link to Comment reader2010
reader2010's picture

or expect to see organized praying at pump in the bible belt.

Mon, 02/21/2011 - 17:36 | Link to Comment Uncle Remus
Uncle Remus's picture

Oh. So THAT's what the fuss was all about.

Mon, 02/21/2011 - 20:06 | Link to Comment sun tzu
sun tzu's picture

Bush's fault. Teabaggers too

Mon, 02/21/2011 - 17:36 | Link to Comment RmcAZ
RmcAZ's picture

I just paid $3.80 for 91 yesterday (California)... we're going to see $4 before spring at this rate.

Mon, 02/21/2011 - 18:23 | Link to Comment hausmzk
Mon, 02/21/2011 - 17:36 | Link to Comment Bolweevil
Bolweevil's picture

$3.84 and rising north of L.A.

Mon, 02/21/2011 - 17:50 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Rising gas prices can only mean one thing: higher NASCAR ticket prices. I think that is where this is going.

Mon, 02/21/2011 - 18:32 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

NASCAR switched to an ethanol blend this year, and a bunch of engines hand grenaded at Daytona. You've got to love it.

Mon, 02/21/2011 - 17:55 | Link to Comment Troll Magnet
Troll Magnet's picture

A real outbreak of revolts/protests in America is a frightening thought.

We're talking about hundreds of millions of totally misinformed/deceived public with guns and ammos.  Some may go after elected officials but many will just turn on each other based on politics, race, religion, etc. 

 

 

Mon, 02/21/2011 - 18:43 | Link to Comment Bearster
Bearster's picture

+1

Anger + guns != getting a clue

Mon, 02/21/2011 - 21:03 | Link to Comment Amish Hacker
Amish Hacker's picture

Homer Simpson wanted to buy a gun in one episode. When the clerk told him there was a 10-day waiting period, Homer whined, "But I'm angry now!" 

This is part of what we're up against.

Mon, 02/21/2011 - 17:20 | Link to Comment H. Perowne
H. Perowne's picture

Saudi Arabia will be the tipping point. Once it falls, just picture the Brent/WTI chart. The black swans are circling so thickly already, and their wings have the sound of inevitability. . . .

Mon, 02/21/2011 - 17:20 | Link to Comment ZeroPower
ZeroPower's picture

Aren't only dealers open now to make or take trades, and so maybe its simply a sign of basically zero depth in the current market?

Mon, 02/21/2011 - 17:21 | Link to Comment Moe Howard
Moe Howard's picture

The price of Ag & Au caused an increase in demand for rocket fuel.

Mon, 02/21/2011 - 17:20 | Link to Comment Brokenarrow
Brokenarrow's picture

By the close tomorrow the es will be flat or green.

Mon, 02/21/2011 - 17:21 | Link to Comment RmcAZ
RmcAZ's picture

BTFD? Oh wait, there aren't any dips...

Mon, 02/21/2011 - 17:23 | Link to Comment Bodhi
Bodhi's picture

BTP?  Buy the Plateau?

 

 

Mon, 02/21/2011 - 17:26 | Link to Comment Ragnarok
Ragnarok's picture

I believe the replacement is Buy The Fucking Rip, or BTFR!

 

Though I am open to new submissions.

Mon, 02/21/2011 - 17:21 | Link to Comment Richard Head
Richard Head's picture

TPTB will not let WTI go above $100.

Mon, 02/21/2011 - 17:29 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

What can they do to stop it? Events drive Brent higher and WTI is dragged along. US politicians don't control the world despite the conspiracy theorist rants.

Mon, 02/21/2011 - 18:07 | Link to Comment Richard Head
Richard Head's picture

Sure, just like WTI was "dragged along" as its premium to Brent evaporated and opened a $10+ differential.

Mon, 02/21/2011 - 20:36 | Link to Comment hardcleareye
hardcleareye's picture

RH, read up a little on the subject.

You have increased production coming online from the shale oil out of the Bakken's, some increased crude flowing down from Canada, plus you have some refinery constraints and max production capacity of the refineries and to top it all off you have some very old pipelines that cannot handle the increased viscosity of crude at full pressures, hence decreased flows on those pipelines... limiting the ability to get the increased production to the existing refineries that do have spare capacity..  all and all a grand clusterfuck, that even Machiavelli couldn't design...  it will sort its way to a resolution.

Read this,

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

 

Tue, 02/22/2011 - 11:20 | Link to Comment Richard Head
Richard Head's picture

How do you explain WTI at $91 this morning?  I "read up" a lot, thank you very much.  NB: Brent is now at $106.

Tue, 02/22/2011 - 11:22 | Link to Comment Richard Head
Richard Head's picture

Brent at $106 and WTI at $91 this morning.  Wrong again, tough guy! 

Mon, 02/21/2011 - 18:13 | Link to Comment CPL
CPL's picture

How would that happen?  With forces already stretched to their limit and deployed in a dozen other theatres around the world.  Problem with being the world's police man is it requires a world view that doesn't currently exist, right now it's a question of interests.

And what is being paid for is exactly what is being recieved.  Nothing more, nothing less.  Unless the US wishes to cut the salaries of all servicemen/women by around half their current salaries and scrap the current pensions following the folks that did serve.  It just won't happen, you know how fast the coup in the US would be.

Faster than Egypt and every blue blood would be hung by their guts by the general population around five minute afterwards.  While Jesus would find it impossible to stop throwing up all over himself because of the shit people do/did in his name.  I can see the same level of betrayal of patriots to thier own government.

Mon, 02/21/2011 - 17:23 | Link to Comment Eagle Keeper
Eagle Keeper's picture

Black Swan ???

Mon, 02/21/2011 - 17:27 | Link to Comment Spin the Bottle
Spin the Bottle's picture

OMG like why is everyone so totally talking about a black swan? I have never seen one.

Mon, 02/21/2011 - 18:10 | Link to Comment tmosley
tmosley's picture

It was white, then it went diving in the gulf.

Mon, 02/21/2011 - 19:11 | Link to Comment Ludwig Von Miso Soup
Ludwig Von Miso Soup's picture

Meh, I'd Netflix it. Good scene with Natalie Portman and Mila Kunis, though.

Mon, 02/21/2011 - 17:23 | Link to Comment americanspirit
americanspirit's picture

Luckily you can eat oil. Of course it will be a little more expensive, but that dash of corexit makes it soooo tasty that nobody will be complaining. Ya want fries with that petroburger?

Mon, 02/21/2011 - 17:43 | Link to Comment johnQpublic
johnQpublic's picture

10 calories of fossil fuel energy for each calorie of food produced

 

you are eating oil

Mon, 02/21/2011 - 17:25 | Link to Comment Spin the Bottle
Spin the Bottle's picture

Heyyyyy everyone. This is Britney and I wanted to ask you for some help for my term paper.

I'm writing my paper on how the United States should use gold for it's currency. Could anyone help me?

TTYS. OMG i'm so not good at math! Why do i have to answer this pop quiz?

Mon, 02/21/2011 - 17:41 | Link to Comment Uncle Remus
Uncle Remus's picture

Well, you have to start with the human sacrifice of existing false gods, starting with the Church of the Fiat and it's Evangelizer-In-Chief.

Mon, 02/21/2011 - 17:57 | Link to Comment Spin the Bottle
Spin the Bottle's picture

OMG i'm like so sure. You look totally weird. Can anyone else help me. My paper is due on Friday.

Mon, 02/21/2011 - 18:08 | Link to Comment Uncle Remus
Uncle Remus's picture

Cut the crap Moon.

Mon, 02/21/2011 - 18:13 | Link to Comment Spin the Bottle
Spin the Bottle's picture

OMG you are like soooo rude and soooo creepy looking. Go Away!

Mon, 02/21/2011 - 19:49 | Link to Comment perchprism
perchprism's picture

 

I can help you, little Missy. 

In the olden days, money used to be gold and silver.  These are elements that have to be dug up from the Earth.  Bankers couldn't make enough profits using a limited resource like gold and silver, so they invented "debt" as a form of money.  Dollars are "IOU's" that are traded back and forth instead of gold and silver.

But now, it turns out that the Federal Reserve Bank is printing trillions of IOU's with nobody quite sure who owes what to whom.  Maybe, the IOU's won't be paid back.  This is known as risk or, specifically, "counter-party risk".  It used to be assumed that dollars were backed by the full faith and credit of the United States, and that meant something, but now people aren't so sure.

To avoid any possibility of counter-party risk, some folks are thinking about resurrecting the silver and gold standard, because with gold and silver there's no risk.

I hope you get an A on your term paper, but you'll probably get an F.

Mon, 02/21/2011 - 20:34 | Link to Comment Rusty Shorts
Rusty Shorts's picture

 Not bad, dept = slavery

 - "to slavery, the greatest misunderstanding in the history of mankind."

 - Cobra Verde

 

http://www.youtube.com/watch?v=4glquMRJLF8

 

Mon, 02/21/2011 - 21:12 | Link to Comment TuesdayBen
TuesdayBen's picture

Britney, young ones like you have a bleak future in this country, so, really, like, why even try to write that paper?!?

BTW, whatcha wearing?

Mon, 02/21/2011 - 17:43 | Link to Comment silver_serf
silver_serf's picture

Bernanke is that you? !!

Mon, 02/21/2011 - 17:27 | Link to Comment smlbizman
smlbizman's picture

this is in honor of dandy don 

 

turn out the lights the partys over.....

Mon, 02/21/2011 - 17:28 | Link to Comment buzzsaw99
buzzsaw99's picture

This is not the bernank's fault.

Leave Bernanke Alone!

 

http://www.digitaljournal.com/img/4/3/4/4/i/4/2/2/o/LeaveBarackAlone.jpg

 

Mon, 02/21/2011 - 17:28 | Link to Comment Financial_Guard...
Financial_Guardian_Angel's picture

TPTB will allow gas prices to be high, but not too high. Too high will put a crimp in their lifestyles by adding some volatility they don't want. Remember, they can't let the natives get too restless...

Mon, 02/21/2011 - 19:28 | Link to Comment spinone
spinone's picture

Conspiracy theories are comforting.  Its better to believe that there is some hidden cabal in charge than that we live in a chaotic and unpredictable world.

Mon, 02/21/2011 - 22:40 | Link to Comment StychoKiller
StychoKiller's picture

When I found out that we're living in the "Age of Kali", I found all the info I needed to explain the situation!  In the Age of Kali, you DO as Kali commands!

Mon, 02/21/2011 - 17:29 | Link to Comment barkingbill
barkingbill's picture

brent or wti?

 

which will outperform the other?

i need some good advice here. 

Mon, 02/21/2011 - 17:30 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Maybe I should order heating oil tomorrow.  Or, will it be too late?

Mon, 02/21/2011 - 19:03 | Link to Comment CPL
CPL's picture

you kidding...the jump will be priced in by 6 tonight and oil companies charge by the day of delivery.  They won't pass up the opportunity to kneecap their customers.

Mon, 02/21/2011 - 20:21 | Link to Comment Oleander
Oleander's picture

Your too late. Ordered a fill up this morning for tomorrow- $3.18- but  a few companies were already raising prices today.  One company went up 7 cents by 10 am this morning.

I called family to urge them to also order fuel. Its 20F here!

I feel sorry for those who "never saw this coming".

Mon, 02/21/2011 - 17:31 | Link to Comment Ferg .
Ferg .'s picture

Was mulling over a few crude shorts earlier , thank God I thought better of it . Insane moves today in Brent and WTI . Biggest daily ranges in well over a year and look at that spread compression . From $20 to $10 in about 2 days of trading !

Mon, 02/21/2011 - 17:33 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Put a superman costume on Bennie Bucks and watch the rescue of the Market at all costs.

Mon, 02/21/2011 - 17:33 | Link to Comment 10kby2k
10kby2k's picture

The Fed could lower rates to -1% or more.  That will get cash moving.

Mon, 02/21/2011 - 20:27 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

The azz hats at the Fed have considered date-stamping money... So, if you don't spend it by the time the date-stamp expires it's no good.

How is that for a store of value???

Mon, 02/21/2011 - 17:34 | Link to Comment Goldenballs
Goldenballs's picture

If the price goes up just print more money bernanke style.

Mon, 02/21/2011 - 17:34 | Link to Comment lynnybee
lynnybee's picture

....... in other words, my adult son, who is unemployed, cannot afford to drive in the hopes of finding work & go on job interviews !! ............ STUPID ME ! ........... THERE AREN'T EVEN JOB INTERVIEWS TO DRIVE TO ANYMORE !! ........ so, good ol' Mom, with what resources she has left, is trying to help everyone .........

I CANNOT SAVE EVERYONE ! ..... i've given up stockpiling, have buried my silver for fear my family cashes it in for gasoline money .......... it's over !

WHO IS THE N.W.O.  (new world order) ANYWAY !!!   WHO THE HELL IS RESPONSIBLE FOR THIS MESS !

Mon, 02/21/2011 - 17:42 | Link to Comment Kassandra
Kassandra's picture

The powers that be are afflicted with Greed and Narcissism...a deadly combination...for us. 

Mon, 02/21/2011 - 18:14 | Link to Comment QQQBall
QQQBall's picture

pseaking of Narcissim.. what is the over/under until Baky taps the SPR?

Mon, 02/21/2011 - 20:55 | Link to Comment samsara
samsara's picture

WHO THE HELL IS RESPONSIBLE FOR THIS MESS !

Watch this fun cartoon you will see.

http://www.silverbearcafe.com/private/02.11/hitmen.html

Here you go Lynny,  You can listen to one of them http://www.youtube.com/watch?v=7Fw1RMKWypo

A little history

http://www.youtube.com/watch?v=LLzZjaMEGJA&feature=related

I might also add

http://www.democracynow.org/article.pl?sid=07/06/05/149254
Mon, 02/21/2011 - 19:09 | Link to Comment Hugh G Rection
Hugh G Rection's picture

The creature was born of evil pigmen in the winter of 1910 on Jekyll Island. 

 

http://www.youtube.com/watch?v=tGk5ioEXlIM

 

FED DELENDA EST!

Mon, 02/21/2011 - 17:34 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

CDS spreads on saudi arabia are widening.

Mon, 02/21/2011 - 17:58 | Link to Comment Going Loco
Going Loco's picture

Insane isn't it? Even the Saudis are in debt. If the Saudis can't pay their bills without borrowing money the whole system is quite obviously completely snookered.

Mon, 02/21/2011 - 17:35 | Link to Comment youngman
youngman's picture

One thing about this increase is that it will be affected by a destrution of production....some of the Islamists will destroy Satans oil fields as they see that as bad.....they will never come back on line nor would anyone in the Western world invest there again....I hope

Mon, 02/21/2011 - 17:37 | Link to Comment camoes
camoes's picture

It doesn't matter because it doesn't change core inflation and the fed doesn't care about headline inflation it's not a predictor of future expected inflation.

All the economical models show that the consumer will adjust to inflation and adjust his consumption choice. People are unemployed because they prefer leisure time than to work, if not, that would not be rational. I'm God, I'm the Ben Bernank

Mon, 02/21/2011 - 17:38 | Link to Comment Spin the Bottle
Spin the Bottle's picture

Heyyyy guys this is Britney. I have to go to the library to finish my homework so i will talk to ya'll later.

Bye-bye! :) TTYL.

Mon, 02/21/2011 - 17:53 | Link to Comment Spin the Bottle
Spin the Bottle's picture

OMG like i'm soooo totally embarrassed. My friend Ashley, well like her mom was going to pick us up so we could go to the library cuz Josh might be there and now she is not going to take us cuz she heard that Josh likes me and my mom will like totally have a cow if she finds out.

So now i'm back again.

Mon, 02/21/2011 - 17:57 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

is that you Chris Hansen??  this isn't a very target rich site for what you are looking for....at least i hope not

Mon, 02/21/2011 - 18:07 | Link to Comment Spin the Bottle
Spin the Bottle's picture

I'm so sure. This is Britney.

My Google search said to ask this website.

Either i have to finish this paper by Friday or my mom says that i can't go to cheer camp this summer. And Josh is going to be there so i might have to change my subject if you guys can't help a little.

Should i change topic to gulf oil?

http://news.yahoo.com/s/ap/us_sci_oil_spill_lingers

Mon, 02/21/2011 - 18:19 | Link to Comment CPL
CPL's picture

Tits or GTFO.

 

You should change your topic to how the oil industry has forced the sex industry's hand making plastic wangs and 20 pounds of pussy and ass.

http://www.bedroomjoys.com/fuck-me-silly-mega-pussy-and-ass.html

There's a lot of oil in those sex toys.

 

Otherwise...you could write a report on puppies and rainbows shooting out of unicorn asses while the economy recovers.

Mon, 02/21/2011 - 20:32 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Ass, gas or grass...no one rides for free...

Last seen on motorcycle stickers in the 60s-70s.

Mon, 02/21/2011 - 17:38 | Link to Comment onarga74
onarga74's picture

Went long Fri Mar TZA calls...it's gonna do a 3-1 reverse split Weds which drops the outstanding from 38m to 13 million. Gotta love a thin float when everyone wants in and the train has left the station.

Mon, 02/21/2011 - 18:08 | Link to Comment ZeroPower
ZeroPower's picture

Awesome. Do post back tomorrow pm when the market ends green!

Mon, 02/21/2011 - 18:15 | Link to Comment onarga74
onarga74's picture

I was gonna add that.  The market will probably be up a couple hundred points based on Bernanke borrowing another positive day from the future.  It's apparent he's the only one buying stocks and he has an endless supply of our money that we get to pay back.  Doesn't someone have to give him permission to do that? 

Mon, 02/21/2011 - 17:39 | Link to Comment RobotTrader
RobotTrader's picture

I really might be screwed.

I have 200 shares of UGA in the low 30's, but I should have at least 500.

I was conviced oil was going to crash one more time as the CRB Index is way overextended.

Oh well, I guess I'll have to sell the truck and ride the bus! 

LOL...

Mon, 02/21/2011 - 17:44 | Link to Comment AndrewJackson
AndrewJackson's picture

I am sure your gold/silver longs will balance the loss out.

Mon, 02/21/2011 - 18:09 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

a man of your wealth and fame taking the bus - never. you're a retired gentleman squire, remember. that's your made-up identity on the board.

btw: t boone pickens sends his regards. he was on the other side of your oil short.

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