WTI Passes $109

Tyler Durden's picture

WTI surges courtesy of a disastrous UK economic update, and expected ECB tightening. Oh wait... That must mean QE3....No....That's impossible. The San Francisco Fed said just this Monday that there is no correlation between monetization and surging commodity prices. And stocks surge just because in Weimar America, $109 crude is bullish for stocks. This will end in tears.

And in the meantime in Europe...

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vast-dom's picture

No inflation right Ackman? Sheesh....

goldfish1's picture

Forewarned is forearmed?

the mad hatter's picture

The military expedition in Libya was just to warn our old buddy Gaddafi to sell us is light sweet oil for cheap and respect the multinational oil corporations.

It was a message: do it or we'll turn you into another Saddam.

Neither side wants to end up dead or in an extremist quagmire. That's why we're pulling out.

Flakmeister's picture

 Where are those guys that were trying to convince me that oil was a screaming short?

Snidley Whipsnae's picture

Short oil with summer driving season approaching? Not to mention that the Mid East's hair is on fire?

Flakmeister's picture

Check out the exchange here on Monday:


Can you believe that I was accused of talking my book? Hilaripus

Snidley Whipsnae's picture

"For example, often times traders know that a large base of positions have to be rolled over, so they close out their positions, and wait for the selling to end before then buying the next month`s contract to keep their original bias in the market. Some traders even short the market at the same time they are closing out their original longs because they know that a large roll of longs will be closed out, so they piggy back on the rollover for additional profits. This is oftentimes why you experience 4 or 5 days of weakness due to the selling, and shorts piggybacking on the rollover, with two days of strength in the expiring contract as the shorts have to go long to close out their positions before the contract expires."

Yes, common practice in many commodities. 

Flakmeister's picture

Check out the chart on the rollover effect for the past 9 months in WTI ...I don;t have it handy, but there was one floating around at seekingalpha

Spalding_Smailes's picture

Flak -


You must admit, you did not know the middle east was going to have issues when oil was under $95. Thats really what's driving this run up.

Burnbright's picture

Turmoil in middle east is due to inflation. You can keep denying it but its the truth.

tmosley's picture


"Nobody could have seen it coming" except for those who did.  Some fools don't know snakes from dildos about economics.  Funny that they are universally the ones telling us all is well.

Flakmeister's picture

I reply to you, but this is meant for everyone. How the fuck can anyon be an Au/Ag advocate and not be an oil bull? I trade the cash flows...

  Any thing that drives down the price of oil will also affect PMs...

SteveNYC's picture

All roads really do lead to the Bernank.

Urban Redneck's picture

The Cushing glut serves a purpose - it allows the US media to talk about 110 oil instead of 125.  As an added bonus, some dumb spec trader caught holding the paper on expiration day can lead to a $10-20 drop in closing price, which the media will jump on during the evening news, before the price print is magically erased at midnight, just like in that other fairy tale.

baby_BLYTHE's picture

I was just browsing Banzai's website and came across this gem (must have missed it when it was posted on ZH)


Needless to say, My keyboard is now drenched with my afternoon latte :]

My co-workers have been complaining about gas prices... I told them, welcome to world wide Benocide!

nonclaim's picture

Just before the driving season, look out for the pre-season show of burst pipelines, refinery "scheduled maintenance" shutdown and fire and small explosions in the other ones. All unforeseen events, of course.

vast-dom's picture

PAtience FlakMan -- there will be a great opportunity to short oil....timing is central obsession.

Note to self's picture

Oil price goes two steps up, one step back

in concert with GDP which goes one step up, two steps back

till the oil is gone


vast-dom's picture

not if you do a DOUBLE SHORT ;)

gordengeko's picture

Right.  Why is DTO moving northward when crude is up 108 to 109?

Sudden Debt's picture

2 one thousand

3 one thousand

4 one thousand


time of death 10 o'clock...



Homey Da Clown's picture

SD, curious. Are you the same chap with the Sudden Debt blog? If so, good stuff.

Cash_is_Trash's picture

In person, Sudden Debt has the ability to speak in CAPITAL BOLD LETTERS


tmosley's picture

Shorting anything in this market is the mark of a true madman.  If someone tells you to short something, ANYTHING, in terms of dollars, you can most likely write them off as insane, stupid, or both.

Flakmeister's picture

Well maybe bonds and the inverse PM ETFs (if you can find some to short)

tmosley's picture

Not even those.  If the ETF's are found to be fraudulent, they will go to zero.

This is why a nice bet is to  short GLD or SLV, and go long physical metal.  Unfortunately, in practice, they won't let you take delivery of the bullion you bought with the proceeds of your short, which means a LOT of extra risk, as any custodian is likely to screw you over, charge you for storage on non-existent bullion, and then go bankrupt before you can get your metal.  

SheepDog-One's picture

He's down below, named 'RainBowTrader' or something.

HamyWanger's picture

No matter what bigoted Ron Paul-worshipper, anti-Federal Reserve, anti-State libertarians say, the global economic recovery is on the march, and nothing will stop it. 

Robot Traders Mom's picture

When the SHTF, tell your old lady to come shack up with me. If your lucky, we'll come visit you and I'll throw you some pieces of bread like I do with the birds.


Cindy_Dies_In_The_End's picture

dude, Hamy is a comical farce on purpose. You should laugh.

DeadFred's picture

Can't you tell she's not a dude?  Look at her cute icon.  Even if she is expressing lesbian tendencies we shouldn't judge.

SteveNYC's picture

Was that the personality behind RT's Mum, or RT's Mum wanting to shack up with a chick? Interesting, either way....

EZYJET PILOT's picture

Tears are already being shed, just ask the Libyans. QE3 roundabout September I reckon. By this stage oil will be upwards of $150 a barrel, Syria would have been engaged with Iran on the targets, not to mention the fallout of Fukoshima impacting the economy. By this time Bernanke will turnaround and say it is necessary for the survival of the global economy, we all know what he really means however.

Stuart's picture

what else could they say, really.  They have no choice but cannot admit it, ever. 

Dick Darlington's picture

The coming economic and financial collapse will be something never seen before. Every ponzi scheme comes to an end and this one will make no exception.

Ben Probanke's picture

wti futures not good reference for crude price in the US and cant compare to 2008 since WTI now trading at deep discount to US Gulf crude oil. LLS in the gulf is at 125.50 $/bbl...

DonnieD's picture

This price surge in oil is purely due to sophisticated driving habits of developing countries.

Flakmeister's picture

Nice....I have to file this one

falak pema's picture

'humming' my way to death...killing me softly...

Snidley Whipsnae's picture

lol... SA Princes drive big Mercedes everywhere at ~ 80mph, stopping at no stop signs. Consequently they are being eliminated from the gene pool rapidly.

EscapeKey's picture

Yeah God damn those fearmongers called the 'IEA''.


The International Energy Agency(IEA) says production of conventional crude oil peaked in 2006

Open your eyes, we're hitting peak as we speak.

dogismyth's picture

good gravy....sounds like a bunch of women in a room with a single small mouse.   Yeah, its all over folks...pull the trigger NOW!

Cdad's picture

And equities are up...why?  Again, did I miss something this morning?  Silver @ 31 year high, gold @ nominal all time high, oil @ about a three year high...with gasoline trending ahead of the oil slope this time....again. why is the equity market higher?

It must be the good news at Fukushima...right?  I heard they plugged a crack in a pool.

It must be all the good economic data our of Europe...like the auction of Portuguese debt which was "successful" in the words of the BlowHorn [yep, that is a quote].  Or stagflation confirmed?

It must be US housing?  Collapsing orders in China?  Maybe E. Burnett is just really ramping the adorableness factor?  Everything is running on UnicornDew power?  'Cause Cramer pointed out the completely farcical moves stocks have been making...and then deduced that this signaled that farcical things would continue?

It must be stability in Egypt, Syria, Yemen.

Again, why is the equity market up?   

...oh...I know...the just released news that cash is pouring OUT OF long ETFs?

...wait...I know...that tons of people HAVE TO SELL Apple?

Rikki-Tikki-Tavi's picture

technically equities are only up in fiat terms - in gold terms they are down. I prefer to think that the market reach peak irrationality shortly before it corrects.

Hedgetard55's picture

DOW is about where it was at the beginning of 2007.


Silver has roughly tripled in price from that same time.


Priced in dollars, DOW is flat. Priced in true money, silver, DOW has fallen to a third of what it was, in real terms.

writingsonthewall's picture

TD - can you clarify something - when you say "this will end in tears" - do you mean


a) Tears from the eyes as the world gets upset at another crisis which it was 'promised' by 'lying politicians' would not happen again.

b) Tears of shredded paper as FIAT currency is torn up and burnt


The people need to know these things, will it be hanky's or wheelbarrows at dawn?

SheepDog-One's picture

Tears from the smoke of up in flames fiat.