WTI Plunges As ~$250 Million Notional Crosses In 2 Seconds

Tyler Durden's picture

It would appear that the combination of the last day of trading for the March futures contract and some earlier concerns (via CAT) over global growth are enough to warrant a huge  block of selling in the April futures contract for WTI crude. Of course, the now standard rumor of a commodity fund liquidation is doing the rounds - 'standard' in so much as whenever there is a sudden unexplained sharp sell-off in the commodity space it is trotted out. As an aside, this drop in WTI perfectly recouples it with gold -1.7% on the week. It appears, as Nanex notes, that this 'two-second 2500 contract block' ~$250mm plundering of all resting market orders then caused CME to halt trading for 10 seconds. Human? hhmm

... as we tweeted


April Futures plunge on huge volume...


and Brent follows WTI... as the spread widens...


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greyghost's picture

well now crude and silver and gold??? are they losing control in chicago? hang on, we will wait for zero hedge to inform us as to whom the big sellers are!

nope-1004's picture

PCT, plunge creation team.


r101958's picture

Yep. It is all a matter of managing perceptions, all while allowing the TBTF's to take profits.

strannick's picture

WTI is starting to sound like silver. Crush the commod complex before the Fed announces an increase in QE.

r101958's picture

Or crush the commodity complex (and bonds and bank deposits) so the retail/small investor has nowhere else to go but to equities. Then when equities are sufficiently bubbled up the big boys (TBTF's) will then take out the money they are currently propping it up with leaving the retail/small investor to bite the bullet....again.

jballz's picture

"sometimes a cigar is just a cigar. If it is a cigar being shoved up my snatch in the oval office, well it is still just a cigar." -Monica lebowski.

Anyway you people need to stop investing or trading or whatever you call it. Go find a slot machine. I don't know what your imaginary world looks like, where gold goes to a million billion zillion and everything else does too, having watched silver go from four to forty nine, the bullshit from the colored section never changes. It is always supposed to be higher and a down day is a conspiracy. It's fucking retarded. If commode went straight up every day every dumb fuck on the planet would just buy and get rich. Which I guess is what this is, you are dumb fucks who want to buy something and get rich. Same with crude, goes from twelve to a hundred and a five dollar drop in a fix by the cabal. Just give it up, you're losers.

Slot machine, bitchez.

(commence with junking, I will be having a wire sent to me this afternoon with your money goin in my pocket. Thanks evil market manipulators, I laugh last.

TruthInSunshine's picture

02-20 11:12: Market talk of a commodity fund in trouble - Unconfirmed


That "unconfirmed" market talk, increase/decrease of dividend payouts, mega-mergers (and rumors of such), and all things associated with upside AND downside moves (and bubbles & busts) - in the "efficient markets."

Gotta' watch out for those things when gambling in rigged casinos....I mean investing in "efficient markets" -- even though it's not possible unless you're an as-yet-to-be-indicted person with the initials SC.

seek's picture

MFG 2.0

I guess we'll know who the Chinese (or whoever that is standing for delivery) are using for their trades soon enough.

Canadian Dirtlump's picture

I took greg mannarino's recent advice and backed the tank up on crude, and the truck up on gold and silver. Fast forward to this week.


Now I have tire tracks across my back and am bleeding from the ass!

strannick's picture

only if you believe these prices reflect reality. When Ags over a hun, whats a couple of bucks between friends?

Lewshine's picture

If you have to ask WHY or WHO...You lend credibility to the market, where there is none. Here's what happen - and what continues to happen, everyday; The top brass in the Bernanke put sent out the memo that today was the day to get short crude. Ben's tyrannical thieves set up the trade, pushed the button on absolutely NO fundamental news - and, BAM...Millions are made. They control EVERY asset class, today was just oil's turn. Its fake, fraudulent...NOT REAL! Nothing goes down without OK, everything goes up UNLESS it jeopardizes everything going up - Like precious metals. P Metals are a threat to the equity parabol - KILL THE THREAT! Oil is a result of printing and must be MANUFACTURED LOWER or it becomes a threat to equity parabol (which is the only thing keeping the window painted) - fawk guys this isn't rocket science. WHAT DOES BEN NEED? Answering this question while placing your bets takes you to the ultimate return. ZH never mentions this, or at least the entire point - Ben gets what Ben needs, and when he doesn't he just lies about the result, that, 9 times out of 10 creates the ideal anyway! The Fed owns the entire US market - every asset class, and they carve out everything needed. If their hands are not pushing an asset one way or the other - its only because that particular asset class doesn't matter at that moment. Hearing frickin retards saying "The Market", as if this thing has its own life, and moves on its own accord is the most ridiculous thing anyone could think. If this market was left to its own devices, Ben would be hanging naked from a light pole in front of the Fed building.

notquantumdum's picture

I'm not sure I buy this.  There is another much simpler explanation short of a conspiracy:  it's the technicals, stupid.

Not too many hours after I awoke this morning, I noticed that BNO (ETF for brent north sea spot price) had failed to stay above what I considered to be an important very short-term technical support level of about $87.50.  Because of that fact, alone, I promptly sold all of my BNO at just about the beginning of the big route in oil prices today, locking in a nice profit from being long BNO for a number of months, even though I could have sold even higher.  This is just about when all of the big selling occurred -- or just before.  The price closed even lower.

Imagine that.

And, I'm not even part of the Bernanke syndicate and don't have any machine algos running (outside of my head).

Technicals typically work well in the short to very short terms.  We'll see about longer time frames.  I noticed exactly the same thing during the very beginning of the flash crash back in May of 2010 and numerous other times since then, also locking short-term and slightly longer-term gains both to the downsides and upsides at different times in different securities -- both riding the crashes down and then reversing to riding back up again after new resistance levels were breeched to the upside (making these same levels new support levels).

Is it impossible to believe that there are large quantities of much more sophisticated (and wealthier) traders who have automated such behavior with algos?  I certainly don't have any problem believing that is going on.  That would explain a lot.  It happens to both the upside and downside in prices whenever certain levels are crossed in just about every security I look at.

It's not a very hard way to make money, providing value to the people who will turn out to be on the losing side of the trade (by improving their price for them by taking the other side of the trade), if you know how to play the game well.

That being said, it does not prove that the Fed is NOT manipulating everything else besides the dollar value which they obviously do manipulate as part of their mandate.

Maybe they even watch the technicals too.

notquantumdum's picture

Hmm . . . 'Wondered today if I should've bought BNO back only a few weeks later, saving at least 4.6%, net??

What is that, a 70% savings per year, on an annualized basis?

Is the short term over yet?

notquantumdum's picture

Does this mean, responding to the original post in this thread, way back:

I am the market and therfore don't ask who, but rather, participate -- at least in part?

But, doesn't that mean there actually is a market again -- at least in part?

notquantumdum's picture

if not unbelievably small part . . .

notquantumdum's picture

What do you know?  BNO up today.  It looks like technicals worked again.

notquantumdum's picture

I suggest that we do not have to be muppets.

We merely submit to such servitude, through ignorance.

prains's picture

Allison Redford please pick up the red phone.....emergency emergency

MillionDollarBoner_'s picture

Gary Gensler please pick up the red phone...emergency emergency

You corrupt, dickless, no-nuts douchebag!

venturen's picture

Does Gensler have to call Goldman for the excuse du jour?

Canadian Dirtlump's picture

that burly cunt can eat shit and bark at the moon.

Mark Carney's picture

Woof Woof


As an Albertan, there is going to be some huge pain from Govt in March.........

Canadian Dirtlump's picture

Indeed. Thanks to all the big city sycophants who voted the fucks back in too. I'm from alboita too. The town I lived in during the last elections voted wild rose.

Mark Carney's picture

Frankly, it woud not have mattered who is running.  In the end they all would assume $100/brl, even though CWS is growing rapidly in its spread to WTI.


Add in the fact that the Teachers and Nurses bitch and complain thet they  make little $, yet are paid more than a 20% premium to their national peers (fucktards).  And in govt office there is 1 manager per 4 employees where norm is 25:1.  Money well spent.  Look for major cuts to Alberta Health Service (maybe end of superboard) and all technology, education related funding.


With employment so low here, I am still having a hard time trying to grow my career in a new position..... stagnation, yay

Cognitive Dissonance's picture

Things are rapidly becoming manic out there.

<Now where did I put that Faraday cage?>

MFLTucson's picture

Another manipulated fraud.

slaughterer's picture

The real issue today is what happens in the commodity space at 2pm with the Fed minutes?  There is rumor of a slightly more hawkish tone, with talk of "costs" of QE.  This would be enough to scare a few over-leveraged commodity funds out of already plunging assets.    

EscapeKey's picture

ooh, I can't wait for this weeks empty rhetoric

nope-1004's picture

Ya, maybe they'll mention that they are planning on withdrawing QE and raising rates.  LMAO !!

It's all bullshit, with Bernocchio being head bullshitter.


fonzannoon's picture

It does seem very feasable that they will wind down QE relatively soon and very calmly start nudging rates upward to try to tap the brakes and keep us from overheating. We want to keep this moderate pace of expansion and not get too ahead of ourselves. I do look forward to being able to buy some bonds with higher coupons to go along with some stocks that I feel will benefit from the global economic recovery. I think the fed minutes will reassure me they are on the same page as I am,

 - fucking sheep

Captain Benny's picture

The engine isn't heating up because its running well, its heating up because Keynesian Lube isn't oil, its more like melted slurpee.  It tastes good when its fresh, but after the sun gets to it... only the ants will dive in.

The engine's friction is quickly getting hot, but thats because the engine is litterally melting itself trying to put out more RPMs than the keynesian lube allows for.

greyghost's picture

and again we will await the zero hedge report on any front running of the fed minutes!!!!

fomcy's picture

"hawkish tone" About what?  Automatic Spending cuts on March 1 will cut GDP by 0.6-0.8%, Cut 500-700k Jobs

And Push Unimployment rate above 8%.. Is that recovery you are talking about?

Againstthelie's picture

Your thoughts are too complex and well founded for the algo-driven and FED-initiated markets.

The crisis is solved, nothing to see here, go on!

CrashisOptimistic's picture

Hell, guy, that's just the Sequester.  That's from 2011.

We then have the end of March Continuing Resolution and the spending cuts that will be put into that.

EscapeKey's picture

I group all my large trades together. By plunging the price, I get the best price possible (for other traders).

spastic_colon's picture

apparently just part of the great rotation out of everything and into global equities /s


today's poster child for the DOW levitation is - IBM

scatterbrains's picture

Dont forget XOM with IBM... they trade near identical  intraday on days when the NY Fed is fighting downside action.

SelfGov's picture

The bumpiest plateau!

bidaskspread's picture

RBOB is down more, large speculation on that future position according to the commitments of traders report issued Friday.

LawsofPhysics's picture

So it would appear that only a select few are being allowed to "buy the dip" or front run.  When fraud becomes the status quo, possession becomes the law. Now where did I park that tanker of concentrated calories?

Without calories, nobody is getting anything done in the real world, period.

JJSF's picture

Same with gold and silver..

Paul Coghlan is doing a live charting webinar today at 1pm EST covering all this..should be good..always is.

Boston's picture

Dr. Copper is falling to major trendline/support at around 3.55

If this breaks, then look out below......perhaps due to a global production slowdown finally getting priced in.


tecno242's picture

Its not just copper..

look at a long term chart of gold and tell me what you think happens below 1500. 

commodities are set up for a crash... although I have no clue why. 

Either the FED is somehow behind this (which would require a massive amount of intervention)... or they are on red alert watching it.

Non Passaran's picture

Perhaps a sign from the WH that more spending is needed to the "recovery " going?

Steaming_Wookie_Doo's picture

I'm waiting for some "scientific news" where they've learned to mfg gold for a fraction of the mining price. The hammering would be epic.

But seriously, there's something really weird going on when Russia, China and India are importing record amounts of gold, yet the prices are declining. We may have:

1. The mfg of gold thru fraud (tungsten core gold bars)

2. There's a lot more gold out there than is "officially" recognized

3. Existing stores of gold are being looted to fulfill these demands (at suppressed prices)

4. There is a method of mfg or extracting gold that is much cheaper/faster than previously known

FunkyOldGeezer's picture

Goody, Goody...cheaper petrol pump prices soon. Yeah, right!

otto skorzeny's picture

I'm expecting $.50 off this morning's price at the pump when I drive by this evening