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OPEC Says Perfectly Happy With $120 Oil, Does Not Think It Will Impair Growth

Tyler Durden's picture

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Tue, 03/22/2011 - 09:59 | 1085644 strenue
strenue's picture

This is deflationary, right?

Tue, 03/22/2011 - 10:11 | 1085692 Thorlyx
Thorlyx's picture

no, but it is bullish.

Tue, 03/22/2011 - 10:27 | 1085748 Cash_is_Trash
Cash_is_Trash's picture

This is bullish for rappers that light their cigars with $100 bills.

Tue, 03/22/2011 - 10:33 | 1085772 Gene Parmesan
Gene Parmesan's picture

I for one am looking forward to 'making it rain' when I'm buying my morning coffee at DunkinDonuts.

Tue, 03/22/2011 - 10:30 | 1085767 Sean7k
Sean7k's picture

All those dollar bills have to go somewhere. What better way to soak up liquidity?

Tue, 03/22/2011 - 10:42 | 1085806 bankrupt JPM bu...
bankrupt JPM buy silver's picture

I need an all electric Tesla.  If anyone selling please PM me.  Oh and buy some USO calls.



Tue, 03/22/2011 - 19:23 | 1087814 uformula
uformula's picture

Not right now, but it will be when the recovery is derailed.  Deflation will be the concern in the quarters ahead. 

Tue, 03/22/2011 - 09:59 | 1085650 Sudden Debt
Sudden Debt's picture

I wonder if they would still be happy if oil goes to 200$...




Tue, 03/22/2011 - 11:59 | 1086144 Harlequin001
Harlequin001's picture

Yep, a grand's always a nice round number...

We like round numbers, keeps the maths easy...

Tue, 03/22/2011 - 10:05 | 1085651 TruthInSunshine
TruthInSunshine's picture

Luaibiwa was then asked about $134.78 per barrel oil, to whince he replied:

Now you're being fucking ridiculous, STFU noob.

Tue, 03/22/2011 - 10:30 | 1085760 schoolsout
schoolsout's picture

that made me chuckle

Tue, 03/22/2011 - 09:59 | 1085652 X. Kurt OSis
X. Kurt OSis's picture

This just shows all the wealth effecting is working.  USO holders feel wealthier and are therefore more likely to buy iPads.


Inflation is good for sheep.

Tue, 03/22/2011 - 10:01 | 1085657 Creed
Creed's picture

Opec was fine with $100 oil, now it's fine with $120 oil, up 20%


dollar is 17% lower then it was last year


sounds fair

Tue, 03/22/2011 - 10:25 | 1085740 Cash_is_Trash
Cash_is_Trash's picture

It's only a matter of time before the exchanges start moving the goal posts i.e. margin requirements.

Volatility tug-of-war, baby

Tue, 03/22/2011 - 13:03 | 1086369 CPL
CPL's picture

I mentioned that yesterday on the morning open that the figures were off by ten bucks.  The Analysts were happy to think 110 was a "good" range whatever the fuck that means anymore.

I mentioned 120 and here it is.

Tyler is correct though, since inflation the true valuation of what that oil will cost in real terms is 150 adjusted over the last five years.  140 per barrel was cheap in 2008.

Tue, 03/22/2011 - 10:01 | 1085659 The Aviator
The Aviator's picture

This is awesome! Comeon guys, this can work, lets take it viral!

Crash JP Morgan, Charge Silver!
(With a JP Chase Freedom 0% APR card!)


Tue, 03/22/2011 - 10:32 | 1085775 Triggernometry
Triggernometry's picture

Exactly! I got a chase freedom card in december just for purchasing silver, they gave me a limit of $2500. Peanuts. I've maxed it out monthly buying silver.

My only regret was not starting in august, but at least I have another couple months of 0% silver purchasing power.

Tue, 03/22/2011 - 10:01 | 1085660 Conrad Murray
Conrad Murray's picture

Tired of getting bent over and not being able to do anything about it?

Watch this: http://www.youtube.com/watch?v=7D6neBzTnOQ
Join here: http://chat.mibbit.com/?server=webirc.anonops.in&channel=%23OpESR

Tue, 03/22/2011 - 10:12 | 1085694 X. Kurt OSis
X. Kurt OSis's picture

I object to this movement.  Passive non-violence and civil disobedience has not produced any gains.

It didn't end racism or Vietnam in the 60's and it won't end economic repression today.  MENA has proven that violent uprisings produce change... Whether the change will ultimately be good is yet to be seen.

I, for one, am willing to roll the dice on burning it down and seeing what happens.

Tue, 03/22/2011 - 10:24 | 1085742 Conrad Murray
Conrad Murray's picture

Latch on, leverage existing infrastructure, do as see fit (not an endorsement)


Tue, 03/22/2011 - 10:42 | 1085807 X. Kurt OSis
X. Kurt OSis's picture

Not saying its a bad idea.  Just severely limited in terms of producing a lasting result.  The problem is that it gets the people who are motivated to do something thinking that they did do something, if that makes sense.

Yet even the most disruptive protests in the 1960's did little to bring about change.  Wars raged on, racism merely changed its tone, the elites continue to pillage the poor.  The folks that were up in arms in the 60's were pacified by decades of debt fueled wealth effecting.

The multi-decade demand gap couldn't be sustainable and the system crashed... except, we have been rendered so impotent that we allowed ourselves to be convinced that the way out was one big massive transfer payment to the ruling class.  We are so impotent, the people don't even know they have been fleeced and this system will never change until the sheep awaken to that sad fact. 

I only hope that we won't have been rendered so fat and stupid by that point that we won't be able to fit our fat fingers in the trigger wells, or know which end of the rifle to point at a target.

Tue, 03/22/2011 - 11:12 | 1085932 Idiot Savant
Idiot Savant's picture

Rifles against drones, tanks, FLIR equipped helicopters, etc.? Ask the Libyan rebels how it worked for them...

Tue, 03/22/2011 - 11:19 | 1085967 X. Kurt OSis
X. Kurt OSis's picture

Surprisingly well against a government all but certain to use all of its millitary force against an uprising.  Developed countries would never have the will to use extensive millitary force against its own civilian population.

More over, as quoted on here recently:

"Still, if you will not fight for the right when you can easily win without bloodshed, if you will not fight when your victory will be sure and not so costly, you may come to a moment when you will have to fight with all the odds against you and only a precarious chance for survival.  There may be a worse case.  You may have to fight when there is no chance of victory, because it is better to perish than to live as slaves." - Winston Churchill

Tue, 03/22/2011 - 12:27 | 1086233 NotApplicable
NotApplicable's picture

Developed countries would never have the will to use extensive millitary force against its own civilian population.

That's why they have NATO and UN troops.

Tue, 03/22/2011 - 10:02 | 1085664 malikai
malikai's picture

OPEC: We consider $5,000/bbl crude to be acceptable and will not hinder /our/ growth.

Tue, 03/22/2011 - 10:08 | 1085677 Shocker
Shocker's picture

Oil prices could be $50 a barrel and that will only save about .05 cents off a gallon.

Tue, 03/22/2011 - 10:13 | 1085697 SWRichmond
SWRichmond's picture

Oh my goodness.

Tue, 03/22/2011 - 11:11 | 1085928 VisualCSharp
VisualCSharp's picture

Care to elaborate?

Tue, 03/22/2011 - 11:10 | 1085933 VisualCSharp
VisualCSharp's picture

BTW, 0.05 cents is 1/20 of 1 cent.

Tue, 03/22/2011 - 10:06 | 1085679 johnnymustardseed
johnnymustardseed's picture

$120 barrel of oil should equate perfectly to $120 barrel of wheat

Tue, 03/22/2011 - 10:10 | 1085685 mirac
mirac's picture

The military industrial complex MUST get paid for its F-18's they sold the Saudi

Tue, 03/22/2011 - 10:10 | 1085686 chistletoe
chistletoe's picture

Some of us old energy traders have known for quite awhile

that Saudi Arabia has no spare capacity.

Now, finally, a few more of y'all may figure it out ....

Tue, 03/22/2011 - 10:21 | 1085732 EscapeKey
EscapeKey's picture

Matt Simmons basically agreed in his 2006 book "Twilight in the Desert".

How convenient he had a heart attack.

Tue, 03/22/2011 - 14:44 | 1086844 DaveyJones
DaveyJones's picture

we've been at peak since about 2005

Tue, 03/22/2011 - 10:10 | 1085687 lizzy36
lizzy36's picture

"contained" like "sexual relations" is clearly open to interpretation.

Liars and cheats, talking their own book. What were the odds?

Tue, 03/22/2011 - 10:15 | 1085696 SWRichmond
SWRichmond's picture

Oil started the 70's at 4 bucks, rose to 40, then settled at 20, for a 5-bagger.  In USD terms, what we are facing is, in the BEST case, "the 70's plus."  $200 to $300 oil is coming.  This is if Bernanke succeeds in reinflating the U.S. economy.  Worst case, of course, is a USD collapse, and then price becomes meaningless. 

Given the war on energy production that is in progress, even domestic energy sources are going to skyrocket in price.  Isn't that obvious now?

Thinking seriously about buying a Prius.  Actively updating HVAC equipment at the house.

Tue, 03/22/2011 - 11:13 | 1085946 VisualCSharp
VisualCSharp's picture

Your post was good until the last two sentences. You really think a Prius is going to do you any good? lol

Tue, 03/22/2011 - 11:22 | 1085991 SWRichmond
SWRichmond's picture

And your suggestion is...?  Do you know what I'm driving now?  Do you know how many miles I drive?  Do you know if my miles are deductible?  Do you know what my income level is and my ability to continue buying gas?  Do you know what my current exposure is to rising energy costs?

Do you know anything at all?  Or are you just another internet big mouth?  And I don't think Bernanke is going to succeed in the long term.  But I count myself among the many who are amazed that the system has held together this long, and no longer rely on their ability to call the timing.


Tue, 03/22/2011 - 16:32 | 1087303 naughtius maximus
naughtius maximus's picture

Everyone said in 2008 that oil was going to $300 by the end of the year. People who are budgeted from paycheck to paycheck (about 50% of the workers in the USA) will not be able to afford that oil they way they normally consume it. They will: move, quit, car pool, or go postal. Demand destruction will mean price destruction just like before. I hope none of you are fools this time round. When every smuck you meet at work complains about the price of gas that is when the bottom will soon fall out. I've already sold my oil interests. I intend to scoop them all back up 15% off the bottom sometime in Novemeber.

Tue, 03/22/2011 - 20:19 | 1088024 SWRichmond
SWRichmond's picture

Notice how I carefully avoided predicting a time frame?  Notice how, in my subsequent post, I marvelled at the inertia of the system and recognized I couldn't call the timing?  Notice how I also stated plainly that I knew perfectly well that Bernake wouldn't succeed?

I'm not trading oil, I'm insulating myself against the long term, before the real rush begins.

Tue, 03/22/2011 - 20:58 | 1088117 Flakmeister
Flakmeister's picture

That is very prudent.... I advise all my clients to purchase up front their energy use via PBT, HGT, SBR. Imagine having bought 1500 bbls at $35 and owning the cash flow in the form of a monthly check....12000 miles pa is equivalent 11 bbls of oil for 25 mpg..And likewise the Nat Gas you expect to use.. I have very happy clients who are insulated from energy costs....

Tue, 03/22/2011 - 10:13 | 1085701 user2011
user2011's picture

When will the OPEC openly accept gold or silver as payment for their products ?

Tue, 03/22/2011 - 10:21 | 1085725 EscapeKey
EscapeKey's picture

We'll pretend Middle East invasions are about humanitarian causes, and they'll pretend they can raise production in a meaningful manner.


Tue, 03/22/2011 - 10:21 | 1085728 bigking12345
bigking12345's picture

at least we kill them fast, they are killing us very slowly.

Tue, 03/22/2011 - 10:28 | 1085757 SheepDog-One
SheepDog-One's picture

Great, we've got a bunch of camel jockeys now telling us whats an acceptable level of oil pricing. BRILLIANT!

Tue, 03/22/2011 - 10:49 | 1085817 Sabibaby
Sabibaby's picture

I know, especially when it's OUR OIL!!!!

Tue, 03/22/2011 - 11:01 | 1085888 EscapeKey
EscapeKey's picture

I'm still sitting wondering how the hell they managed to talk the Opec nations into taking coloured pieces of paper with arbitrary nominal figures printed on them in exchange for arguably the most useful commodity on the planet.

Oh, I know; interest. Aka more coloured pieces of paper.

Tue, 03/22/2011 - 11:34 | 1086064 mick_richfield
mick_richfield's picture

"You tell the world you will only sell oil for American dollars.  And you get to keep your dictatorships -- gauranteed by American military power."

See?  It was still a precious metals backed system.  Except the metal was depleted uranium.


Fed delenda est.

Tue, 03/22/2011 - 14:48 | 1086857 DaveyJones
DaveyJones's picture


if history knows anything, we'll need an economy to keep that army thing going

Tue, 03/22/2011 - 10:30 | 1085758 props2009
props2009's picture

BoJ says we are going to intervene again. Warns speculators to stay away.


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