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Regime-On / Regime-Off As Oil Round-Trips Yesterday's Losses

Tyler Durden's picture





 

Confirming that it is always the markets who make the news, especially when the news is explained by "world renowned commodity experts" who really are only long of newsletter sales in constantly wrong terms, yesterday's slide in oil was quickly and clinically "justified" with the near certainty that Iran's regime was on the verge of collapse following the local currency devaluation. We welcome these same "experts" to justify away why it is that the HFT algos which comprise over 30% of the CME's revenue have decided to send WTI right back to unchanged in yesterday terms. Because it would appear that today the Iranian regime is suddenly more entrenched than ever, and hyperinflation is actually a sure fire way to cement a so called dictator in his throne (as we said previously).

The week's performance of Oil relative to Gold, Silver, and Copper...

 

Chart: Bloomberg

 


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Thu, 10/04/2012 - 13:52 | Link to Comment transaccountin
transaccountin's picture

lol @ face

Thu, 10/04/2012 - 13:54 | Link to Comment slaughterer
slaughterer's picture

Trick or treat Obama.  

Thu, 10/04/2012 - 13:59 | Link to Comment nope-1004
nope-1004's picture

Petro dollar trick, inflation treat.  Must manage commod's to keep USD looking good.

 

 

Thu, 10/04/2012 - 21:36 | Link to Comment dexter bland
dexter bland's picture

There's been very little physical demand growth for any commodity lately. Oil consumption is no higher than it was in 2006, despite the Chinese having 100 million more cars since then. The traditional jewellery and industrial markets for gold have all but collapsed. Copper is being stacked high in warehouses as there are no downstream buyers.

But its pointless discussing supply and demand with algorithms, they just don't get it. The price of everything will just keep rising, until it becomes unstable and collapses, just like 2008 (or for a more recent example, iron ore).

 

Thu, 10/04/2012 - 22:34 | Link to Comment Flakmeister
Flakmeister's picture

No there has been demand growth without the attendant increase in supply.... We are on the plateau and have been since 2005....

Thu, 10/04/2012 - 13:59 | Link to Comment Skateboarder
Skateboarder's picture

If you go to his house, the trick is indefinite detention and the treat is a SNAP card.

Thu, 10/04/2012 - 14:00 | Link to Comment akak
akak's picture

That face can't be Obama's --- it's too white, and is missing the little jughandle ears.

Thu, 10/04/2012 - 14:04 | Link to Comment fuu
fuu's picture

A) Where was the Horror AH yesterday?

B) Where was the PM smackdown before 2:30 yesterday?

Thu, 10/04/2012 - 14:15 | Link to Comment slaughterer
slaughterer's picture

Horror = NATO statement on Turkey-Syria: means war.

PM smackdown 3-5% next week.  

Thu, 10/04/2012 - 14:32 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

I, too, predict something.

Thu, 10/04/2012 - 14:31 | Link to Comment fuu
fuu's picture

5% is hardly a sale, dammit.

Thu, 10/04/2012 - 14:06 | Link to Comment GolfHatesMe
GolfHatesMe's picture

Face of a Speculator

Thu, 10/04/2012 - 13:57 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Everything seems fine to me.  Nothing can possibly go wrong before the election.  I'd better go sell some VIX calls.

Thu, 10/04/2012 - 14:04 | Link to Comment kaiserhoff
kaiserhoff's picture

Front running AIG?

Thu, 10/04/2012 - 13:59 | Link to Comment bezell
bezell's picture

So called EPIC SHORT SQUEEZ??????? Read about gas stations in california being shut down due high gas prices.(bloomberg)

 

 

 

 

 

 

 

 

Thu, 10/04/2012 - 14:22 | Link to Comment SemperFord
SemperFord's picture

Gas was 4.55 this morning for 91 in LA, good thing my car runs fine on 87 at 4.33 :(

Thu, 10/04/2012 - 15:02 | Link to Comment cbxer55
cbxer55's picture

Guess that makes the $4.39 for 93 octane I can get here a steal, huh?

Thu, 10/04/2012 - 13:58 | Link to Comment LawsofPhysics
LawsofPhysics's picture

This was discuss at length about two weeks ago here.  Thanks ZH, shorts paid.  Everyone bought the dip right?  all is well for another week.

Thu, 10/04/2012 - 14:05 | Link to Comment pashley1411
pashley1411's picture

I'm waiting for the chart that shows The Angry Market God, taking the form of Godzilla's trip to Tokyo, stomping the the capital markets.  

Thu, 10/04/2012 - 14:04 | Link to Comment PUD
PUD's picture

Fed babble comes out and the algos go fucking wild! lol

Thu, 10/04/2012 - 14:06 | Link to Comment Flakmeister
Flakmeister's picture

There are some pretty severe imbalances in the world's petroleum production and refining chain currently. The US NE has historically relied on European gasoline imports, with 2 mmbpd of Euro-zone refiners gone, the lack of an adequate distribtion network from the Gulf Coast is now causing shortages. Mid-Atlantic PADD gasoline is just above MOL levels...

Combined with explosions in a refineries, one in CA, the other in NB, the situation is getting down to short strokes....

Thu, 10/04/2012 - 14:16 | Link to Comment slaughterer
slaughterer's picture

+1 Flakmeister.  

Thu, 10/04/2012 - 14:06 | Link to Comment richard in norway
richard in norway's picture

what the fuck is the iranian regime going to do, if their currency keeps colapseing like it is now the regime will fall apart in weeks. whats their next move? 

 

ps, the fall of the iranian regime should push oil prices up cos they will produce less oil in the chaos that follows, if we believe that the market is rational?!

Thu, 10/04/2012 - 14:35 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

My prediction is that Iran yuan-izes before a single western finger hits the "send" button on a cruise missile. 

Thu, 10/04/2012 - 14:41 | Link to Comment richard in norway
richard in norway's picture

thanks that had occured to me as well, either that or gold, but i dont know if they can do either or if it would work, im guessing that regime change might happen in iran before nov4

Thu, 10/04/2012 - 14:08 | Link to Comment rebelscum1967
rebelscum1967's picture

face is classic!

Thu, 10/04/2012 - 14:16 | Link to Comment GolfHatesMe
GolfHatesMe's picture

I should have filled up last night

Thu, 10/04/2012 - 14:17 | Link to Comment The Shootist
The Shootist's picture

The markets don't even come off with a semblence of being honest. When the SHTF, all the ponzis are gonna fall REAL hard.

Thu, 10/04/2012 - 14:18 | Link to Comment Dr. Engali
Dr. Engali's picture

After last night's debate performance the odds of a strike on Iran before the election just went up.

Thu, 10/04/2012 - 14:38 | Link to Comment slaughterer
slaughterer's picture

Dr. E. you clearly see the game theory here.  Obama will pull a Carter with regard to Iran.  

Thu, 10/04/2012 - 15:28 | Link to Comment Anglo Hondo
Anglo Hondo's picture

Go long helicopters, quick.  Yes, now!

Thu, 10/04/2012 - 14:18 | Link to Comment Arkadaba
Arkadaba's picture

Awesome! I think I have my Halloween costume!

Thu, 10/04/2012 - 14:37 | Link to Comment new game
new game's picture

well since g and s were on the chart, must ask a question: is 1800 and 35 appear to be manipulated to the max road blocks?

is blythe just doing the clients wishes?  we all know it is paper stopping the upward movement, but sincerely the ratio of addtl fiat being added say 2000 and 45-50...just wondering wtf as usual in a rigged assnine market.

when my head clears though i know the phy demand will be the final push to get jp subserviate to reality. but they are a force to be reckoned with.  the experts (ar, ar) say jp is buying/storing as this rises(after shorting to stops), which makes sense too.

soon, they may have bigger whales to harpoon...

Thu, 10/04/2012 - 14:41 | Link to Comment slaughterer
slaughterer's picture

Looks like WTI will open far above $92 tomorrow.   

Thu, 10/04/2012 - 14:54 | Link to Comment lolmao500
lolmao500's picture

Israel and their usual BS...

Israel says Syrian mortar strike was attack on NATO

* Says attack on one NATO member attack on all

Thu, 10/04/2012 - 21:59 | Link to Comment seethreepo
seethreepo's picture

Hilarious.  Great post.

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