WTI Drops Below $100, Down Almost 10% On The Day, Complete Wipeout In Euro Brent

Tyler Durden's picture

The anti-speculator witchhunt is bearing fruit: following the wipe out in precious metals, the next, and key, target of this commodity take down, crude, just went from triple to double digits, hitting a low of $99.70, with the $100 limit orders resulting in a surge in the USD and accelerating the drop in EUR. Stocks continue to be completely disconnected from this massive liquidation across all commodities, as every mutual fund knows all too well that Ben will always step in and make sure that the Russell 2000 never has a downtick. Yet this complete isolation of equities from other products merely confirms that not even the HFTs correlate stocks to other asset classes. It also means that HFTs are no longer present in stocks, which means that even the fake liquidity provided by HFTs is no longer there, and we will likely have a far worse flash crash the second Brian Sack loses control of the stock market.

Yet the move in USD-priced crude is nothing compared to what is happening to Euro-priced Brent. In a word: "total wipeout"

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Manthong's picture

I am so glad that all of this inflation fear fueled hysteria is ending and common sense and logic is bringing the costs of essential energy, commodities and precious metals back in line with the intrinsic value of currency.

camaro68ss's picture

O NO DEFLATION!!!! Start QE3 now!

hedgeless_horseman's picture

Just the KSA saying thank you for the KIA, IMO.

Texas Gunslinger's picture

I'm less concerned with silver today, and more concerned with oil. 

If Obama manages to keep the equity markets somewhat afloat, while simultaneously killing the commodity space, he will get re-elected in a landslide victory against whatever dolled-up, carnival-barker the Republicans can find at the Ms Conservative Milf USA pagent this summer. The killing of Osama is the icing on the cake.  And if unemployment improves a little?  Game over.   

The decline in oil is horrible news for Republicans and libertarians, based solely on the prospects for Obama and the 2012 election.  We can only pray that oil marches higher after this correction. 



What does it all mean's picture

Why can't speculators short?  ;-)

Texas Gunslinger's picture

In Texas, men don't wink at each other, you libtard. 



in4mayshun's picture

You should replace Hannity Gunslinger. Then I might listen to talk radio.

JW n FL's picture
Republican-controlled committee voted for a 18-month delay of regulations intended to reduce risk in OTC derivatives.
in4mayshun's picture

 "I am so glad that all of this inflation fear fueled hysteria....(blah blah blah)"

OH Please! These guys are so predictable you can play em' like a fiddle! I have been telling people for 3 months to expect a sharp correction in the markets. They're just laying the ground work for phase 3 of dollar destruction.

"Q-E INFINITY AND BEYOND!"- Buzz the Bernank Lightyear



ivars's picture

That is only temporary, and short temporary. With QE3, everything will be back and above (except silver) in July already.

DoChenRollingBearing's picture

As smart ZH-er tmosley once wrote, it's going to be one of those days when many of us will not be very productive...

Dejean Splicer's picture

Yea like totally.

One of these days the non-ZH shills have to rise up against the ZH shills. Hopefully we'll see lots of Hendron-Va red spilled and flowing.

Does one of you dumb fuckers understand that OPEC is retaliating for the death of Bin Laden via their collusive relationship with the The Peak Oil Scam?!!

Please get a fucking clue, Bitchez!

DoChenRollingBearing's picture

Wow, Au down $53, Ag down $4.

Massacre, Bitchez!

DoChenRollingBearing's picture

More info, FWIW.

Dow: -149

gld:slv ratio: 4.2

24hgold.com / eBay widget Au premium: 11.9%

24hgold.com / eBay widget Ag premium: 43.1% (was 60% earlier today)

jus_lite_reading's picture

It's not over until the FAT MAN sings! FUKUSHIMA IS SINGING!

REACTORS 2 -3 are smoking!!!!!! THERE IS SO MUCH GOING ON!






Smiddywesson's picture

I am shorting paper gold and buying physical gold.  I would imagine the big guys are doing the same.  I would also guess that it will make the snap back in gold very pronounced vis a vis the other commodities.

jus_lite_reading's picture

Yes! The BIG BOYS are buying all the physical gold and silver they can! This shaking of the tree is BULLSHIT to bring on QE3.

SheepDog-One's picture

Funny, still cant find silver to buy for under $48 anywhere right now. Paper games.

tmosley's picture

I sympathize with those invested in oil, as you have here a market where the fundamentals point firmly UP.  Sadly, you folks couldn't take physical delivery, and as such are much more vulnerable to paper games.  

JW n FL's picture

some people rented boats to park the physical in.. was the last thing I saw floating around in a prospectus.. that was 6 months ago? ish??

tekhneek's picture

GS is fucking pissed I bet.

SELL CLIENTS (so we can buy the dip you jackasses create) !


And as per usual gasoline will get more expensive. Love economics.

SheepDog-One's picture

Your avatar is a dead ringer for this girl who was the office nympho way back when, just give her a glance and she'd be sitting on your lap in your office at the drop of a hat. I swear its her.

Robot Traders Mom's picture

@tmosley-you don't get enough credit for your common sense approach. too much over analyzation by people on here.

it is what it is...you either have it in your hands or you don't. you either believe in the end game or you don't.

wirtschaftswunder's picture

Only an idiot would give credit to an idiot

Green Leader's picture

Mosley is definitely not an idiot-- but rather a troll on payroll.

Most people here can't see that.

tmosley's picture


Edit:  Seriously, wat?  Who on Earth would be interested in having an anarchocapitalist on their payroll?  You think APMEX is shelling out the bucks to me, a chemist, to come and sell physical silver?  Guess what, they don't need me.  Their inventory moves just fine on its own. 

Smiddywesson's picture

Simpletons, I'm the paid troll working for the Fed.  Buy the Russel 2000, buy.  These aren't the droids you are looking for.  You may go about your way, to buy more Russel.

SheepDog-One's picture

I cant find silver to buy anywhere today for under $48. I'll probably stop by my dealer later and see if he as any more boxes of silver dimes he can sell me by the pound.

tmosley's picture

APMEX seems to have plenty for well below that price.

Reptil's picture

Yes, that's nice. Simple and true, wheither way of the debate you are doesn't matter.

Question: Would it be a good idea to go into a paper trade, make profit and then transfer to physical (in time for that "endgame")? What would that end game look like?

I know there's a lot of people waiting for deflation, and buying opportunities, and stay liquid (euros, US dollars, swiss francs). Personally I think it's a good idea to cover all exits and own physical too, right now.

Your thoughts?

Smiddywesson's picture

I'm doing it and it's working out well so far.  I don't care if they run gold down to ten bucks.  My DGZ will earn profits I can pile into more physical.  Why lose sleep at night?  Hedge the physical position.

Dapper Dan's picture

I read that Morgan-Stanley chartered more oil tankers than Exxon.

Urban Redneck's picture

Statistics, Damn Statistics, and Lies

Smiddywesson's picture

LOL T, too funny

Oh well, that's the slippery nature of the oil trade.

ZeroPower's picture

And nothing compared to what is happening to silver.

Howeer, looking for a re-nice entry point here.

Sudden Debt's picture

Just wait untill Ben wants to give a speech.

Who knows how low they can push it.


Josh Randall's picture

Exactly right -- anytime the Bernank gets on the mic, or starts cracking his knuckles, Gold and Silver will get their upside-ON again. Old story in this rigged market - artifically knock it down so you can buy MORE cheaply, and then take your hand off the joystick and let the true market pressures move your newly priced commodity higher than it was before

Pegasus Muse's picture

I was just on the phone with my mint.  They had me on hold 20 minutes to talk to a bullion sales rep.  That’s never happened before.  Longest wait ever. 

You think they might be lining up out the door to buy physical silver on this dip?  The rep told me his caller cue was 40 deep when he walk in this morning.  LMAO. 

It will probably be a record sales day for physical silver, thanks to the criminal Bankster Mafia running the Paper Silver Scam at the COMEX/CME.  The sales rep said he is running 2 buyers to every seller.  Buyers are accumulating more silver than the sellers are selling. 

I wonder how much physical silver the Asians and Indians are taking off the market today given the 20% Off Sale the Wall Street Mafia are giving them?  


Dapper Dan's picture

I believe this is called volatility,  but it may be transitory, or is it better than expected?  annualized? lobotmized, how about irrational exuberance? counter intuitive, no i think it is or it should be marginalized,  a tea cup and handle? No  I got it, it is a Fibonacci retractment or is it retracement, margarine compression no that would be squashed butter. Could it be a bear trap? no that's illegal in this state.

What ever it is I'm confident you all will figure it out, I getting sick of it all, (not the ZH think tank) need to get more done around the ranch/farm.


Drag Racer's picture

good to see a drop in price, but at the same time it screems trouble

Seasmoke's picture

$2 gas here we come, atleast until November 2012

j0nx's picture

Just like the guy in fast and furious that hits his nitrous too early, you are too early on your call. Gas drops to the cellar this time next year for at least 6 months until after the election. You can bet your ass on it. Otherwise my prediction that Obama loses his primary to Hillary WILL come true and she will be our next President. Romney is the ONLY GOP candidate that even has a snowball's chance in hell of winning the Presidency against Hillary. If gas prices are this high or higher come November 2012 then the GOP could run a monkey with cymbals and beat Obama. There is at most another year of high gas prices and then we see relief at the pump. Major relief. At least for a little while. These predictions are of course predicated on nothing else major blowing up in the world between now and then literally or financially which is a stretch all by itself.

Smiddywesson's picture

Now that we know they can ramp the dollar, knock down commodities, and hold up the market at the same time.  What's going to make them stop?  Everything is going well for the Fed, and the other central banks who undoubtably been screaming their heads off are probably sighing like they just passed a kidney.  The politicians getting ready for 2012 love it too.  Nobody wants it to stop, so how deep will the rabbit hole go for gold and silver?  You might want to hedge with paper.