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Oil Jumps By Most In A Week As Efficient Markets Recall MENA Still Exists

Tyler Durden's picture





 

With the world's attention diverted to Japan for the past week, WTI managed to drop substantially trading just above $96. Well, just as we predicted a few days ago observing the ongoing developments in Bahrain and Libya, and the imminent realization that Japan will need to boost its petrochemical imports due to drop in nuclear power output, crude spike by the most in over a week, in what was virtually a straight line touching $102/bbl and closing just below. Mocking the concept of a perfectly efficient market is Reuters with the following update: "Oil prices recovered for a second day from three-week lows, which had been sparked by prospects of lower oil demand from earthquake-stricken Japan, and was part of an advance across markets on worries about increasing geopolitical risks, analysts said. "The focus is back on continuing unrest in the Middle East and what will be a lot of disruption in Libya for a long time," said Christopher Bellew, an oil trader at Bache Commodities. "The risk is more to the upside -- there was a lot of long liquidation on that sharp sell off at the beginning of the week," he added." Then again in describing some of the "bullish" reading in the economy, Reuters itself seems to be a little confused: "Data showing that inflation remained contained despite rising prices also helped boost investor mood." Uh, come again? Anyway, following the French invasion of Tripoli some time after 7 pm Eastern, when Paris finally reveals the undisputed military beast it has always been, against an air force consisting of 20 or so Mig-21s with one million air hours of service each, look for oil to attempt recreating the JPY melt up from last night.

More from Reuters:

The U.N. Security Council scheduled a vote on Thursday evening on a resolution that Britain said would authorize all steps in Libya short of a military occupation to protect Libyan civilians. The vote was scheduled for 6 p.m. EDT (2200 GMT).

Ahead of the vote, Libyan state TV quoted a statement from Libya's Defense Ministry as saying "any foreign attack on Libya will endanger air and maritime traffic in the Mediterranean basin and expose both short and long term risks."

"The headlines about Libya's response to any potential foreign military act and the crackdown of protesters in Bahrain are adding fuel to the fire and heightening tensions in the Middle East, said Tom Knight, trader at Truman Arnold in Texarkana, Texas.

"Prices have extended higher from yesterday, also aided by by positive U.S. economic data today."

"The news that the U.N. Security Council will vote on a resolution to authorize a no-fly zone over Libya and imposing more sanctions against it has helped crude rally here," said Phil Flynn, analyst, at PFGBest Research in Chicago.

Bahrain arrested seven opposition leaders, a day after its crackdown on protests among the Shi'ite Muslim majority drew rare U.S. criticism and raised fears of a regional conflict.

Libyan troops pushed forward towards the insurgent stronghold of Benghazi and launched air raids on its outskirts as Washington raised the possibility of air strikes to stop Muammar Gaddafi's forces.

In Yemen, security forces used live fire and tear gas on on anti-government protesters, wounding at least 84, activities said.

And this is how the BOJ would intervene in the Crude market if it had the authority to buy the black oil in addition to ETFs, REITs and dollars.

All that said, we can't wait for Joe LaVorgna, Thomas Lee and Ron Insana to tell everyone just how great the positive impact to US GDP will be as a result of having to rebuild a flattened Libya.

 


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Thu, 03/17/2011 - 16:16 | Link to Comment bob_dabolina
bob_dabolina's picture

Oil?

What about the other commodities that were up 4,5, and 6 percent

Thu, 03/17/2011 - 16:17 | Link to Comment RobotTrader
RobotTrader's picture

Do or Die:

Thu, 03/17/2011 - 17:46 | Link to Comment Michael
Michael's picture

I want to thank you all at Zero Hedge, even the contrarians(from our perspective) for everything. I need to make preparations on  the home front in earnest that will consume much of my time. There's really not much more of a difference I can make at this point, as the die is cast. I will try to check in every day and post pertinent information when I can.

I received a strange sign I'm still trying to analyze. I'm not superstitious but I do believe there is an esoteric power in play. A nickel coin flew out of my pocket while pulling out a piece of paper and landed in a very special empty cup on my coffee table. The image on the back of the coin was the Lewis and Clark Expedition. Please don't think too much of it, but ponder the amazing achievement we have accomplished together in our history.

Thanks Again,

Michael

http://img828.imageshack.us/i/img0031eod.jpg/

http://en.wikipedia.org/wiki/Lewis_and_Clark_Expedition

P.S.

Number 9 was the Captcha answer to post this message.

 

Thu, 03/17/2011 - 17:53 | Link to Comment Meme Iamfurst
Meme Iamfurst's picture

 

 

For all unknowing or those who have cheap virus protection, beware...imageshack is full of viruses especially Trojan types.

thanks Michael my protection quarienteed 10 including two Trojans.

Thu, 03/17/2011 - 17:59 | Link to Comment Meme Iamfurst
Meme Iamfurst's picture

"when Paris finally reveals the undisputed military beast it has always been, against an air force consisting of 20 or so Mig-21s with one million air hours of service each"

No so, France has been selling attack fighters to Lybia since 1999, and other assorted goodies.  Tyler, you just had this info on ZH a few days ago.

Thu, 03/17/2011 - 16:20 | Link to Comment alien-IQ
alien-IQ's picture

Meanwhile, back in CNBC land...Larry Kudlow achieves a new low (and you thought that was impossible right?)...

To quote him speaking about the Japan earthquake: "“The human toll here,” he declared, “looks to be much worse than the economic toll and we can be grateful for that.” (Skip ahead to 0:35 on the video.)

http://www.youtube.com/watch?v=lX80vWJhtMk&feature=player_embedded

Thu, 03/17/2011 - 16:24 | Link to Comment dbach
dbach's picture

Wow what a freaking turd! We should drop him off in the middle of the mess with a safety deposit box full of his stock certificates and see if he feels the same way after sleeping outside with nothing to eat but his stupid paper.

Thu, 03/17/2011 - 16:36 | Link to Comment theXman
theXman's picture


I had the same idea.

47511 of 47558  at  3/13/2011 2:49:25 PM  by
theXman

   |   delete

 

Outrageous comment by Larry Kudlow: grateful that human toll is worse than economic tollWe should air drop this scum straight into the exploding nuclear plant.  This slip of tongue (truth) reflects the sick mentality of the financial elite of this country (and the world) who values casino chips much more than human life. They are the Evil Empire within our borders. 

 

Fri, 03/18/2011 - 04:21 | Link to Comment duckduckMOOSE
duckduckMOOSE's picture

I see Larry over there, but in white face powder, red lipstick, and a black bun wig, wearing a Geisha outfit.  Go Larry! Be free! Live out your dreams!

Thu, 03/17/2011 - 16:29 | Link to Comment cougar_w
cougar_w's picture

He just did you a favor, revealing how the wealthy and influencial actually think about their fellow humans.

But having watched two years of financial meltdown and out-and-out daylight robbery, it should come as little surprise this is how they view the world.

That is why they must be eaten along with their spawn.

Thu, 03/17/2011 - 16:20 | Link to Comment AccreditedEYE
AccreditedEYE's picture

All that said, we can't wait for Joe LaVorgna, Thomas Lee and Ron Insana to tell everyone just how great the positive impact to US GDP will be as a result of having to rebuild a flattened Libya.

LMAO!! So, so true....

Thu, 03/17/2011 - 16:20 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Rising prices are now mainstream.. I heard a Wegman's radio spot highlighting rising food prices and using it in their pitch, promising to keep prices stable on a few items for the next year.

Thu, 03/17/2011 - 16:23 | Link to Comment Matte_Black
Matte_Black's picture

Sorry if off-topic, but at least there's a bit of good news:

New Power Line Installed At Fukushima Daiichi Plant: Govt

http://e.nikkei.com/e/fr/tnks/Nni20110317D17JFA30.htm

http://www.bbc.co.uk/news/world-asia-pacific-12779512

 

Thu, 03/17/2011 - 16:25 | Link to Comment Ethics Gradient
Ethics Gradient's picture

Indeed.

I only hope they have some working equipment to power.

Thu, 03/17/2011 - 16:34 | Link to Comment Drag Racer
Drag Racer's picture

I doubt it. The first thing they did when this all started was move in gen. sets

I don't think it was just an issue of the 'plug would not fit'. jeez, cut the cord and braze the damn wires to the buss bars if that was the case. Oh thats right, there is a silver shortage and nobody had any silver solder...

Thu, 03/17/2011 - 16:36 | Link to Comment Matte_Black
Matte_Black's picture

Good point. One can only hope they've been gathering up the materials and equipment they need to restore cooling operations over the past few days.

Hell, even if they've been doing exactly that, live flesh and blood is going to have to get up close with this thing to get it connected and running.

Bad scene all the way around.

Thu, 03/17/2011 - 16:29 | Link to Comment Slartebartfast
Slartebartfast's picture

Optimist.  The US Military just announced the immediate evacuation of all dependents from Japan.  Women and children first!!

Thu, 03/17/2011 - 16:42 | Link to Comment Matte_Black
Matte_Black's picture

Personally, I was glad to see that happen. I've had the feeling we were getting rick-rolled by the Japan gov since this started.

I have no doubt at all that this thing is worse than they've been saying - magnitudes of order worse.

But forward progress is still forward progress.

Thu, 03/17/2011 - 16:25 | Link to Comment sulfur
sulfur's picture

headline made me laugh so hard :) thanks

Thu, 03/17/2011 - 16:25 | Link to Comment RooR
RooR's picture

If even half of Americans with a commute of less than 15 miles decided to bike to work instead of drive, gas, oil, and healthcare spending in this country would plummet.

Thu, 03/17/2011 - 16:29 | Link to Comment Sofa King
Sofa King's picture

Healthcare...big stretch, brother.  You know bike riding can cause health problems, too.

Thu, 03/17/2011 - 16:31 | Link to Comment cougar_w
cougar_w's picture

Nice try yeast boy.

Thu, 03/17/2011 - 16:37 | Link to Comment tmosley
tmosley's picture

I tried biking to work one time on Lubbock roads.

NEVER AGAIN.

No shoulder, no bike lanes off campus.  Just a bunch of pissed off commuters that have to slow down to avoid hitting you.

Thu, 03/17/2011 - 16:33 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

sure. like testicular cancer. cuts off bloodflow to balls etc. just ask lance

 

Thu, 03/17/2011 - 16:38 | Link to Comment SME MOFO
SME MOFO's picture

I had some testicular jokes to make here but frankly even thinking about anything bad happening to my balls prevented me from continuing.  Some things you just don't joke about.

Thu, 03/17/2011 - 16:46 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

hahahaha....aaahhaha

Thu, 03/17/2011 - 16:40 | Link to Comment RooR
RooR's picture

Lance got cancer from PEDs.

Thu, 03/17/2011 - 16:35 | Link to Comment RooR
RooR's picture

Right.  Like loss of fat.  Improved heart function.  You see many fatties in Denmark and the Netherlands?

Thu, 03/17/2011 - 16:40 | Link to Comment MachoMan
MachoMan's picture

fatty blunts

Thu, 03/17/2011 - 16:44 | Link to Comment cossack55
cossack55's picture

The Danes can't afford food and the Lowlanders can't pull their fingers out of the dikes long enough to eat.

Thu, 03/17/2011 - 19:23 | Link to Comment Hulk
Hulk's picture

As a member of "bikes on dikes", I appreciate their efforts...

Thu, 03/17/2011 - 16:43 | Link to Comment Tail Dogging The Wag
Tail Dogging The Wag's picture

Just wait until big oil comes up with their new propaganda: bicycle riding causes testicular cancer in men and promotes rectovaginal fistula in women.

Thu, 03/17/2011 - 16:50 | Link to Comment SME MOFO
SME MOFO's picture

Oh much better -

so an Irishman, a Mexican and a rectovaginal fistula walk into a bar...

Thu, 03/17/2011 - 16:52 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

http://en.wikipedia.org/wiki/Rectovaginal_fistula - OMG. In layman's terms the taint is all f***ed up. For god sake, do not google search images...(shudder)

Thu, 03/17/2011 - 17:09 | Link to Comment Sofa King
Sofa King's picture

I just laughed so hard, I think a little pee came out.

Thu, 03/17/2011 - 16:55 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Yes, it can.. getting hit by a car.

Thu, 03/17/2011 - 16:56 | Link to Comment RooR
RooR's picture

Same thing happens driving.  To the tune of 40,000 deaths a year.

Thu, 03/17/2011 - 16:29 | Link to Comment curbyourrisk
curbyourrisk's picture

That oil chart looks like the definition of STRAIGHT LINE APPRECIATION!

Thu, 03/17/2011 - 16:29 | Link to Comment The Axe
The Axe's picture

Dollar new low  Oil higher...... stocks   up.....why      who knows....   

 

What is a burrito at Chiptole have to cost to cover inflation $15.00

Thu, 03/17/2011 - 16:30 | Link to Comment Drag Racer
Drag Racer's picture

Gaddafi states attack on Benghazi imminent.

French gov. states attack on Libyan army within hours of UN resolution.

src:Al Jazeera

 

looks like its all coming together as planned. attack Gaddafi from the air to piss him off enough for him to do something stupid like a terrorist attack on something to give us an excuse to put boots on the ground...

Thu, 03/17/2011 - 16:33 | Link to Comment Deepskyy
Deepskyy's picture

Well I picked a hell of a week to get back on my meds.  So long as I don't run out of beer I might make it through.

 

Thu, 03/17/2011 - 16:36 | Link to Comment Black Forest
Black Forest's picture

To #1068165: If even 10 per cent of ZH contributors decided to sleep instead of write.... and so on.

 

Thu, 03/17/2011 - 16:35 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Oil will be the new de facto currency.

Thu, 03/17/2011 - 16:47 | Link to Comment Tail Dogging The Wag
Tail Dogging The Wag's picture

Hugo Chavez is having a ball

Thu, 03/17/2011 - 16:58 | Link to Comment MachoMan
MachoMan's picture

It already is the standard for the dollar...  I'm not sure what else it's supposed to appreciate into...  unless you've managed to develop some process whereby a barrel of oil can be compacted into the size of a coin and is not hazardous to humans...

Thu, 03/17/2011 - 16:36 | Link to Comment tmosley
tmosley's picture

Just got back from checking APMEX.  They are down to less than 100,000 oz in bars, and have only 10 100oz bars available (excluding numismatic crap, of which there is a little bit).

Seems like someone is BT crappy little D.

Thu, 03/17/2011 - 18:19 | Link to Comment NotApplicable
NotApplicable's picture

Meanwhile, Tulving is sold out of everything silver smaller than 100 oz bars, with the exception of 2011 Eagles graded MS70, and monster boxes of Maple Leafs (that won't ship until Apr. 4th).

So I'm guessing that the demand from the little guys has finally percolated up through the supply chain to Tulving.

Looking at Jason Hommel's site shows he has some inventory (even SE), but I'd guess it's because his premiums are from 3.6% (junk silver) to 13.7% (SE). Tulving is still selling junk below at a $.70 discount to spot for 40% silver ($.15 discount to spot for 90% silver), if you can afford his minimum size of $1000 face value.

Thu, 03/17/2011 - 16:36 | Link to Comment theXman
theXman's picture

That was my idea too:

 

g  47511 of 47558  at  3/13/2011 2:49:25 PM  by theXman    |   delete

 

Outrageous comment by Larry Kudlow: grateful that human toll is worse than economic toll We should air drop this scum straight into the exploding nuclear plant.    This slip of tongue (truth) reflects the sick mentality of the financial elite of this country (and the world) who values casino chips much more than human life. They are the Evil Empire within our borders. 

 

Thu, 03/17/2011 - 16:37 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Larry just made the list

Thu, 03/17/2011 - 16:48 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Evil always wins, always has, always will. Even when you think the good guys won for a change, if you look behind the curtain you find out the good guys were funded by the same guys as the bad guys.

The odds are good for evil.

Thu, 03/17/2011 - 16:39 | Link to Comment spanish inquisition
spanish inquisition's picture

The US is getting the hang of it's new stability strategy. Talk about freedom and democracy while sending in mercenaries through the back door.

Remember, the only way to always stay on the right side of history is to supply both sides.

Thu, 03/17/2011 - 16:47 | Link to Comment cossack55
cossack55's picture

"repeat, over" from an earlier thread, but I just love this freakin' clip: running time 58 seconds

www.esapnol.video.yahoo.com/watch/4397309/11788984

Thu, 03/17/2011 - 16:41 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Just ordered a ZH thong. Master-plan: Get a gorgeous woman to wear it so i can use that image as my new avatar...

Thu, 03/17/2011 - 16:53 | Link to Comment mynhair
mynhair's picture

If the power cord trick doesn't work, will the Yen challenge 71?

Ah shoot, I'm in the wrong spot - again.

Ooops, water spray = big fail, per NHK now.

Thu, 03/17/2011 - 17:02 | Link to Comment bob_dabolina
bob_dabolina's picture

I don't trust anything coming from TEPCO. Do you know their track record with being honest and telling the truth?

So personally I don't believe there is a power cord.

In the off chance I am wrong and TEPCO is telling the truth for the first time ever, I don't believe it will do anything. The damage to the plant is extensive and there are clearly leaks in whatever they are trying to get water to.

Thu, 03/17/2011 - 16:51 | Link to Comment Misean
Misean's picture

Oil is soooo like, last week.

Thu, 03/17/2011 - 16:55 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

O hell naw. No you didnt. whatevvvvv!

Thu, 03/17/2011 - 16:55 | Link to Comment mynhair
mynhair's picture

Sei ruhig, bitte.  Ich habe SSN.

Thu, 03/17/2011 - 18:45 | Link to Comment Misean
Misean's picture

Why should I want to be quiet?

Thu, 03/17/2011 - 17:01 | Link to Comment spongeBOB
spongeBOB's picture

03-17 15:51: French PM says France wants Libya military action within hours if UN approves

Is it me or Sarkozy is pushing really hard for this millitary intervention. Wonder if it has anything to do with Gaddafi threatening to reveal his last campaign was financed by the

Libyians.

Thu, 03/17/2011 - 17:02 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

Sky News reporting that UK forces could be "in action over Libya" later tonight.

 

Here's how to start a war - http://www.youtube.com/watch?v=r3BO6GP9NMY

Thu, 03/17/2011 - 17:20 | Link to Comment r101958
r101958's picture

It always has been about P.O. ....not all these other diversions. Sooner or later, some folks will wake up to that fact. It is funny how, now, the Kuwaiti Oil Minister gets out there and says 'we have 1 million brls spare capacity; it isn't about supply/demand'. You know, jeeez, where have I heard that before? And, why does he need to say it when everybody knows that S.A. has a spare million or two.........jaaah, right....and the Japanese have a super accurate radioactivity detector they will sell you!

Thu, 03/17/2011 - 17:23 | Link to Comment redpill
redpill's picture

Here come the dominoes: 


GM suspends production at Louisiana plant on Japanese parts shortage

http://english.kyodonews.jp/news/2011/03/79086.html

Thu, 03/17/2011 - 18:22 | Link to Comment NotApplicable
NotApplicable's picture

That's going to do some serious harm to their channel stuffing plans to return to solvency.

Thu, 03/17/2011 - 17:30 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Those reactors are never going to generate electricity again.  Oil or natural gas fueled ones will.  Tack on all the bulldozers getting 2 miles/gallon running around doing road repair, so the cars can get back on those roads, freeing up the bulldozers to clear other rubble, and you have a formula for a 10 or 20% jackup up in Japan's already 4.4 million bpd oil consumption.

Given the nukes are dead and oil will replace at least a part of them, maybe half of that 10-20% jackup in consumption is the F word . . . FOREVER.

Thu, 03/17/2011 - 17:50 | Link to Comment TideFighter
TideFighter's picture

Nissan and Mitsu have from 4-6 days of critical parts, then a complete shutdown too. I lectured against JIT foreign inventory way back in 1979.

Thu, 03/17/2011 - 17:58 | Link to Comment InfinityZero
Thu, 03/17/2011 - 18:21 | Link to Comment scatterbrains
scatterbrains's picture

what % of the French Muslim population is Sunni again ?

 

Thu, 03/17/2011 - 19:10 | Link to Comment 99er
Do NOT follow this link or you will be banned from the site!