OPEC Intervention Time: Brent Hits $121.64

Tyler Durden's picture

Remember how OPEC promised it would immediately expand its "millions" in barrels in "excess capacity" when Brent passes $120? We are expecting a PR from Saudi Arabia it promises to releases it gobs of strategic reserves any...... minute.....now.......now.........NOW damn it. And to all our European readers, we offer our condolences for $10/gallon gas. Take it up with the Chairsatan... oh wait, the San Fran Fed just issued a paper saying the Fed is not, repeat not, responsible for $121 Brent. And the San Fran Fed is always, repeat always, correct. Oh well, it's all that perfectly inelastic demand for gas at surging prices then. Sorry.

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HamyWanger's picture

"San Francisco Fed says that rising commodity prices not due to Fed buying various assets under its QE2 programme"

As I've previously said, QE to infinity. 

Learn it, love it, trade it. DOW 18,000 in 2012.

Robot Traders Mom's picture

That's funny. AAPL is getting slaughtered for about the 5th straight day. Because we all know that QE is never going to end, you should go warn the other trolls at the Huff Post and start doing some real work.

umop episdn's picture

Even if teh troll is right, you run the risk of a doucheterious burger costing about 18,000 whatevers. Even if it does come with flies.

slaughterer's picture

Do you hae a pair of knockers to go witht that avatar, RT'S mom?

disabledvet's picture

market rules always apply.  And that does include "nat gas stays dirt cheap while oil soars."  Two men say they're....

covert's picture

all of the proceeds will be used to undermine Liberty.



Hugh G Rection's picture

Was watching Fox News before work today.  Typical MSM bullshit, blaming high prices on investors/speculators.


How about stagflation and chaos bitches? Does that effect prices?

dcb's picture

the speculators get theri money from the fed, sunny how that connection isn't seen.

bob_dabolina's picture

Why would OPEC need to intervene?

Bernanke said this is from the robust and global econmic recovery.

EscapeKey's picture

I'm placing my bet on a "We, the OPEC, are comfortable with a $125/barrel price point" press release.

101 years and counting's picture

Iran already said they cool with $150 oil.


DoChenRollingBearing's picture

Thanks for telling us, I had not heard.

Why am I not surprised that Iran is OK with oil at $150...?

kaiserhoff's picture

Eh mon, no problem.  Euro cars all come with pedals, anyway;)

trav7777's picture

we're going to ram into the overhead supply curve again as it declines.  Crash, then repeat.

LawsofPhysics's picture

Spot on.  Everyone should know how to trade this.

Mad Max's picture

We can call it "trading the decline and fall of western civilization, for millions of fiatscos in profits!"

MachoMan's picture

Bingo...  our local economy (had lowest unemployment in the country through 09, at least, for 50k+ population) got cockstamped the last time oil rose...  everyone ate at home or brought lunches because travel at lunch time or afterward was too costly...  everyone ordered items from the internet and had them delivered, given the price increases in shipping were less than those immediately felt from gasoline...  tax revenues fell off a cliff.

Trav, at what point do we just break?  Do we just keep smacking our head all the way down?  I realize we're the kings of cognitive dissonance, but shit.

Rusty Shorts's picture

Trav, I know you're a big fan of West African culture. Fire.


DoChenRollingBearing's picture

 + $121.00

Right Trav.  Up and down.  

But, there is an ominous feel that Peak Oil (end of cheap oil as world demand picks up) will mean higher highs and higher lows.

Mad Max's picture

Not really an ominous feel - that exact descent has been predicted for quite a long time.  We're just living it now.  The oscillating nature of both price and supply tends to kill the incentive to invest in production when supply permits, and the ability to usefully invest when price suggests.  This is one area where letting market forces control will kill off the market.

Mad Max's picture

Yes, exactly.

Trav, ever thought about doing articles for ZH?  You are one of the regular posters who clearly has excellent knowledge of peak oil, and it would be nice to get a good article on the topic instead of MHFT's re-warmed Tuesday leftovers.

trav7777's picture

I've thought about it but never been asked

ColonelCooper's picture

I'll read what you write.  Write the shit up, and submit it.  Just think, it won't take anymore time than you spend arguing anyway.

ak_khanna's picture

The only thing happening to Oil prices is that the big speculators and banksters are useing the events in Libya as an excuse to drive up spot oil prices which force the traders on the other side of the trade i.e. the buyers of put options, the sellers of call options and futures to cover their positions resulting in a sharp spike in the Oil prices.

The only thing driving up commodity prices worldwide are speculators armed with cheap money provided by central bankers and super fast computers. This is causing a havoc in the lives of rest of the population and pushing them towards poverty as they can no longer afford the basic necessities of life.

The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.

Regulators are either hand in glove with the banksters or are too slow to react and take ages to identify and take measures to solve the problems.

Total ban on speculation and the reinforcement of Glass Steagall Act is strictly required to bring relief to the man on the street.


EscapeKey's picture

From the IEA's oil market report. We're at the supply/demand crossover point, regardless of how much copypasta you intend to post.



Global oil product demand growth remains largely unchanged at 2.9 mb/d in 2010 and 1.4 mb/d in 2011, but high oil prices entail significant downside risks to this year’s outlook. Baseline changes in non-OECD Asia and stronger Middle East levels lift absolute demand slightly to 87.9 mb/d and 89.4 mb/d, in 2010 and 2011 respectively.


World oil supply rose to an all-time high of 89 mb/d in February, up 0.2 mb/d from January. Non-OPEC oil supply rose 0.3 mb/d to 53.2 mb/d on re-instated Alaskan output. 2010 non-OPEC estimates are left unchanged at 52.8 mb/d, while the 2011 forecast is raised by 0.1 mb/d, to 53.6 mb/d, on stronger-than-expected Canadian output.


r101958's picture

Excellent post EscapeK and you are right. Oil production is in depletion mode...it is best we realize this fact. We need not demonize 'speculators' as for every buyer...there is a seller. The root problem is peak production has been reached....the rest is de nile river.

r101958's picture

What the IEA fails to mention is that all of the 'gain' in production was realized from unconventional oil which is much more costly to bring to market than the inexpensive conventional light sweet oil that we have enjoyed the use of for so much of the last 80 years.

trav7777's picture

unconventional oil has a massive extra energy investment, aka lower EROI, aka it is to a large extent a translation of one form of energy for another.  You have to invest significant heat to get tarsands made into synthetic crude.

The growth in production since C&C peaked in 05/06 has been leveraging NG into oil, albeit at positive EROIs.

The Axe's picture

OPEC can't and won't do shit....

Dan The Man's picture

Exactly...the game is to have a constant flow of reasons why prices are rising in any sector

Jim in MN's picture

Minneapolis, Kansas City and Dallas Fed to San Francisco Fed:

Fuck Off.

Cash_is_Trash's picture

Our analysis does not provide evidence that Federal Reserve large-scale asset purchases fueled the rise in commodity prices.

Who listens to this crap?

the not so mighty maximiza's picture

Do we win a prize at 200?

alexwest's picture

when i read fed is not responsible for oil price hike
my blood is boiling...

heres hard core facts..
oil imports are 10 year LOW.. yes in 2010 US , biggest energy user, imported same amount of barells as in 2000..


oil must be less 40$, but what was the US debt in 2000 and now.. ? thats is $$$$$$$ delution..


docj's picture

WTI up to about $108, too.  This could get interesting in a hurry.

EscapeKey's picture

And two important things about that;

1. $108, despite Oklahoma storage being pretty much full.

2. That's just as the oil industry starts taking off refinery capacity, to adjust for summer blends rather than winter.

This could get really ugly very soon.

Jim in MN's picture

And the extra profit for Koch Industries.....mmmm.....yummy

trav7777's picture

as has been explained, Cushing is largely irrelevant these days (WTI)

EscapeKey's picture

In terms of delivery, yes, in terms of setting the benchmark crude price to which MSM refers, no.

Alert's picture

More bonus for oil Exec! 

tallen's picture

What ever happened to oil up, stocks down.

POMO should start buying stocks too. Why not just go full retard and buy everything.

10kby2k's picture

I have plenty of shit i can sell them ...... they round upwards to the nearest million when buying, correct?

disabledvet's picture

tis true, "i do note one difference between the Real GD" and this variant.  We shall call it "the lack of full retard" then!

evolutionx's picture

Japan wind change: atomic cloud is now blowing twoards tokio an all south Japan!


tmosley's picture

Damn, looks like I might have been too conservative in thinking the southern islands would escape the plume.  This is likely to happen multiple times over the course of this disaster.  The south of Japan might just take it worse than anywhere else except for the areas right next to Fukushima.  Tokyo certainly doesn't look good.

Japan is well and truly fucked.

Mr Anderson's picture

Why doesn't OPEC come out and just say it.  Every time you print and the dollar index goes down. The price of Oil will go up to make up for lost purchasing power in our own currencies.

disabledvet's picture

becuz "that trade is failing again."  I sense "rage."  How 'bout you all?