Risk Off: Commodity Complex Jumps On Reports Libyan Oil Wells Near Benghazi On Fire

Tyler Durden's picture

In a not so surprising turn of events, adverse Libyan newsflow has picked up just as expected, with Reuters reporting that the Oil facility at Zueitina, south of Benghazi, is now damaged and oil wells are now on fire, and that a Libyan rebel convoy is now headed to Ras Lanuf according to Al Jazeera even as fighting in Tripoli picks up, although as we noted previously don't expect any coverage as all the journalists there are now rounded up "for their safety from Al Qaeda" and the terrorist organizations crazy pills. The result: WTI now passing $103, wiping out more tens of billions from the US GDP, further destroying corporate margins, and otherwise adding fuel to today's vapormeltup. Gold and silver follow suit.





Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Temporalist's picture

Silver well over $35.  Chart not showing for me.

Mr Lennon Hendrix's picture

Get monie!  Buy silver!  Snitchez!

High Plains Drifter's picture

Thanks chairsatan, you are the best thing to ever happen to gold and silver bugs. We love you because we know that you will continue mucking it up and nothing will ever be fixed. Again, thanks chairsatan for being the putz that you are.

SilverRhino's picture

35.21 and trending up at the moment.

EDIT: Oops ... 35.17 now ... looks like I hit the top ...

High Plains Drifter's picture

ratio also broke through heavy 41 ish resistance. interesting......

Temporalist's picture

Yes I was looking at that earlier this week.

NOTW777's picture

silver ripping - who junked u?

Dixie Normous's picture

Exactly what I was thinking.  What in the world would have to burn for the dollar to catch a bid?

EscapeKey's picture

The Fed will buy Dollars... with freshly printed Dollars?

SilverRhino's picture

>> What in the world would have to burn for the dollar to catch a bid?

Beijing, Shanghai, Goungzhou, Taipei, Hong Kong, Macau ....

SWRichmond's picture

No worries. They're gonna raise rates any day now...at least, they keep saying they are.

High Plains Drifter's picture

Major American austerity. Then we would have anarchy, no?

SWRichmond's picture

Yes.  That is yet another reason why there will be no "Japan Scenario" for the U.S.  Too many in the dependency class.

slewie the pi-rat's picture

nice avatar, dixie.  hi.  you query: What in the world would have to burn for the dollar to catch a bid?

A:  The National "Debt"

slewie the pi-rat's picture

here's everybody's fave conspiracy theorist {the "World's Greatest" imo} on WHY "WE" must  burn the banksterz' fuking assets to the ground:

The Goldsmiths, Part CLXXXIII

and, WE will get the job done!!!

trust me.

the not so mighty maximiza's picture

200 dollar oil here we come.  Thank god(obama) everyone is finding jobs again.

Triggernometry's picture

We don't need no water...

financeguru500's picture

I will put my bet on oil reach $130 within the next couple weeks.

Larry Darrell's picture

Glad I took that mileage re-imbursement check yesterday afternoon and BTFD in silver.


This has been insane for awhile, but the rate at which the elite are losing control is really starting to accelerate.

EscapeKey's picture

What will happen to the 95% of the population who do not realise they are being lied to on a daily basis, once the realisation that they are being lied to sets in?

samsara's picture


What will happen to the 95% of the population....

Snatching Tiger Cubs and Cherished Delusions

The above short little narrative gives the clues.  

Get out of the way,  I would say.

Cookie's picture

That could take several generations

falardea's picture

Uh, duh.... Egypt, Tunisia, et. al.


Except they'll bring in the Canadians to quell the 'domestic terrorists'.

StychoKiller's picture

The Canadians brave enough to come will find themselves facing a rather large group of mangy mutts with .45ACP fangs!

Zero Govt's picture

fingers crossed you're right... i've skin in the game and it's itching

MiningJunkie's picture

Just BTFD - Long live Zimbabwe!

Tinka Resources at $.45 silver in Peru last at $.445...

lsbumblebee's picture

This just in. Hugo Chavez has organized the first flotilla fire brigade. Captain Chavez and his crew have just crossed the Tropic of Cancer and are full speed ahead.  

TheGreatPonzi's picture

An angry and disgruntled deflationist is junking every post. 

AN0NYM0US's picture

disgruntled yes but I don't think Rosie is angry, just sad and a bit of a broken man

TheGreatPonzi's picture

Deflationists underestimated the folly and genocidal madness of governments and central banks. In fact, they thought the crisis was not so grave after all, and that the politico-banking cartel was going to accept impairments. 

Oh regional Indian's picture

TGP, said deflationist is against the same wind the inflationists are.

Oil at 120 or over should be severely deflationary.

Money printing at whatever stratospherical rate should be severely inflationary.

But this is end game time and if you are on the leash, a yank-about (Ha!) is baked in.

This is just the beginning. 

Of the end I mean.



TheGreatPonzi's picture

Of course, we will have biflation (inflation in the vital sectors such as food and oil, deflation in the rest, until the point hyperinflation starts to scramble everything in nominal if the CBs continue to print). I was referring to the hardcore deflationists. 

MachoMan's picture

Even the "hardcore" deflationists sputter when hard pressed about what happens in a deflationary cycle to our ability to service our debt and, therefore, the ultimate faith in the currency...  either way, the dollar is toast.  The only disagreement lies in how we get there...

Oh regional Indian's picture

Indeed. Somehow, biflation always reads like a dirty word to me.


High Plains Drifter's picture

Former FED governor Lawrence Meyer , was on CNBC "The Call" and told Larry Krudblow that there would be no deflation, don't even talk about it, and don't worry about it.........

downrodeo's picture

haha, yes, well, somebody has to do it...

Zero Govt's picture

i'm a "hardcore deflationist" but i sure ain't "angry and disgruntled". Quite the opposite, more cock sure of deflation by the week!

You euphoric (a nice word for insane) inflationists need to understand 2 simple points;

i. Leveraged Credit (by retail bwankers) far outweighs and out guns Benny the Beans midget printing press. The Feds money doesn't amount to a hill of Benny Beans compared to the over-leveraged mountains of debt the retail banks have out there in the economy  

ii. the problem is DEBT or to put a finer point on it, unserviceable debt. You've seen what happens to unserviceable debt in the US property market. You're seeing it in the Muni and US States market. Both these are powerful deflationary forces sucking money (credit/debt) out of the economy

When the debt mountain implodes (see US property and local US Govt or European Govts) there is nothing and nobody that can do anything about it. It's 'Game Over' unless you can kick the can a bit further down the road.

Remember Benny the Bean jawboning about holding up the property bubble and supporting the mortgage market buying MBS's. How's he done? Fuking crap. How has the ECB's Trichet done with Ireland, Greece etc to "stop contagion"? More fuking crap.

Benny the Bean and Trichet the Twat has been printing for all the poor sods are worth and have zero effect on imploding property values or propping up bankrupt Govts. Midget Ben is too short and too small to support US property. Trichet is too puny and too stupid to stop contagion or do anything than hold of the 'End of Days' for a couple of years. 

So let's recap Gentlemen. The problem is debt. The debt outweighs and outguns Bennies and Trickeys printing machines.

This last gasp from the inflationary bull is going to get slaughtered and torn to shreds by the far bigger, harder and heavier deflationary bear. This will shortly be a 'No Contest' ...give it 6-12 months and all your inflationary bulls will be running for cover and nowhere to be seen  

TheGreatPonzi's picture

All these facts are known by inflationists, except that there is a physical limit to the amount of money that can be destroyed by defaults, and no physical limit to the amount of money that can be created by an electronic printing press. 

If the FED allowed real estate to deflate, it was to concentrate on reinflating equities, which are far more important to the economic "recovery". 

Besides, if deflation really takes hold, it will cause the restructuring of the US government debt, and the dollar will be ripped to shreds. Too. 

lieutenantjohnchard's picture

we need a quote from the fed economist who wrote the paper saying that rising oil was gdp stimulative.

High Plains Drifter's picture

Greenie said this morning on squawk box that higher oil prices are problematic.........well duh???

Caviar Emptor's picture

Gold and silver surging. We're now below the November 2010 close on the Dollar Index, the near-term low. Next stop: 75.6, the intraday low. After that: the abyssssss........

financeguru500's picture


I think the dollar could handle going all the way down to 70 without anyone making any fuss over it. But if it goes below the $70 threshold, expect the news to be all over it.

financeguru500's picture


But I am also basing my view on 2008 when the dollar dropped to $73. I think there are certain numbers that just have a much stronger impact.

Gold @ 1500

Silver @ 50

Dollar @ 69

Oil @ 150


Those numbers are the impact numbers in which things start to get crazy.

Caviar Emptor's picture

The 2008 low came before $14 trillion in extra US liquidity, let alone global liquidity. So teh impact will get magnified. By what factor? Anyone's guess. Lots, I'm afraid. Try oil$250