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Biggest 3-Day Surge In 8 Months Drives Oil To 5-Week High On No News
It would appear, all else being equal, that the algos have found a new leverage asset to save stocks. Given the uncertainty in Europe, EURUSD and EURJPY have lost their effectiveness; Treasuries won't play along due to the safety bid and Fed footprint; high-yield won't budge as fundamentals are making people nervous; and even VIX won't shift as protection is sought. So it seems, given the entire lack of any fundamental reasoning for today's move, that WTI crude is the asset of choice to ramp correlations with stocks higher. This last 3-day push is the biggest move in WTI since August of last year as it pushes back towards the year's highs (and RBOB is following suit) - not exactly boding well for the price at the pump shortly.
which doesnt bode well for retail gas prices...
Charts: Bloomberg
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Oh, there's news coming. Holiday weekend, you know.
BRIC nations doing side deals, danger to petro dollar. OVX oil vix was lowest ever recorded and volume way down. No one is buying futures to actually buy the oil to have delivered in this fashion anymore. Just more market shits and giggles.
WHo in the fuck wants to hold any dollars than necessary or any at all. Bogus bucks printed by the few and debt slaving all the rest.
Gasoline/Diesel prices are the Third Rail of basic economics.
At USD $4 per gallon and up, 13 member households with four generations of family members living together experience "extended relations stress" (this is often commonly referred to as the "Even They Know It's Not Wise To Take the F250 To The 7-11 That's 5 Miles Away For Cigarettes, Booze or Slurpees" affect).
At USD $5 per gallon and up, road rage incidents leading to serious injuries or fatalities increase by 718% versus prices less than USD $3.05 per gallon.
At USD $6 per gallon and up, records of 911 dispatch centers demonstrate that incidents of "people randomly, frequently and violently breaking 'shit'" increase by 2200% versus prices less than USD $3.75 per gallon.
At 6 rounds per citizen, DHS stands ready to "do their duty".
FREEEDUMB!
(Psssst. Bakken output has been down 2 of the last 3 months -- and it looks increasingly like Bakken output is mostly condensate, not high energy crude.)
I've told my mother in-law on long island that once the verazono bridge toll is over $15 she will never see us again or gas goes to $5.00/gallon.
I've told my mother in-law on long island that once the verazono bridge toll is over $15 she will never see us again or gas goes to $5.00/gallon.
So THAT was the lady seen picketing to have the toll raised... (j/k)
The only way I know of to distinguish front running from a no-news surge is time.
Safer than bank deposits.
and safer than the manipulated PM markets
If the Federal Reserve creates a paper market where no market exists, is there a market?
Yepper, the EURO Zone provided it and the U.K. is showing it.
If by "safer" you mean guarenteed to lose 3-10% in purchasing power every year. . .
suprised that there wasn't an interdiction on ramping oil higher. strange.
Yepper, who the fuck are they selling it to??? Remember 2008? Oil is the tell. this is getting ugly really fast
Beats the hell out of the Euro.
Anyone want to buy out my half interest in a chimpanzee act?
Like the used car dealer says, EVERYBODY RIDES.
Depends - can the chimpanzee juggle? What's it like with a vaccum cleaner?
They can juggle as well as Ben and Timmy.
I thought we might just mix and match with the Finance Ministers, and see if anyone notices.
I see a massive train wreck in our future. Just the timing. This cannot end well. In fact, this will end very badly. Of that I am sure.
Don't worry, we'll all be zombies before it ends.
The trickle down theory really does work, when only applied to liquid shit streams.
LMAO!!!!
This cannot end well and will end in a well...
Bernanke, Krugman, and Maddoff (or Bennie, Bernie, and Paulie, if you prefer) are the three stooges of Ponzi Economics.
Intercom: Calling Dr. Bennie, calling Dr. Bernie, calling Dr. Paulie.
Dr. Bennie: Quick, to the printers men!
Dr. Bernie: To the printers!
Dr. Paulie: To the printers! (all run in circles, end up bonking heads with loud hollow retort)
Nyuk, nyuk, nyuk!
According to Brandon Smith over at Cult-Market.com this is all a conspiracy by the elites.
He's right, you're not.
The elites can't put more oil in the ground.
Oil is expensive because it is more scarce.
i'll put some in my tank tommorow first thing in the morning !
Gas doesn't like to be cheap. It has feelings too, you know.
It's all good.
You can be cheap but not easy, or easy but not cheap.
Oil up means disposable income down, means recession.
Wait, we're already in a depression.
You finally coined it, Use multiple recessons to get yourself out of a depression, Simply brilliant. I wish I'd thought of that. I guess that's the best that gubbermint can do when their head is up their ass.
All these think tanks and you find out that it's is morons doing the anal head shake. Get Smarts cone of silence is just one big ass cavity. MOre brilliance, lovin it.
we'll call it a cyclical recession within a secular depression. the depression started in the late 90's folksies. since then, they've created bubbles to hide the ugly truth.
Similarly - although you'd never know it from the UNFCCC - our modern era is only a warming phase of the current Quaternary Glaciation,
i.e., we're in an ice age at the moment sports fans... kinda like a recovery within a larger capital D Depression.
By the time all the oil's gone, the earth will be cooling down again big-time bitchezz and none of this will even matter.
Your seed will inhabit caves.
Well, at least the higher oil price, if sustained, will get the drillers to increase their activity. So it's all good, right?
More USD chasing the same barrel is hardly consumption growth.
July 2008 oil at 145 and change. December of 2008 33.00 and some change. THIS TIME IS NOT DIFFERENT!
How many DigiDollars has BS Bernank whipped up since then?
I think it might be different this time.
Demand destruction. Digi dollars go from fed to bank to stock market. Stocks don't buy oil. People do.
Only based on what I see in the streets. People don't have as many dollars in their pockets now as they did before the last crash. Already I know people making plans based on current price of gas. It is a topic around many a table. So corner the market on oil and raise the gas prices. People will only use it to get back and forth to the grocery store and work. And most of the people making any money in my neck of the woods are having to "drive" out of town to find work that pays worth a damn due to local wage destruction. So much for showing initiative, gas prices will steal the difference.
So yeah there are boo coo dollars out there. But where out there? In the stock market? Gold market? Banks? Offshore accounts?
They ain't where they need to be to create demand.
We see inflation. Steak is up. So now it's a once a month meal maybe. Taking pages out of the chinese playbook to see how many different ways one can cook chicken.
Europe has just insured that demand for oil/gas over there is not going to increase anytime soon.
China and Brazil just entered another agreement to use each others currencies for trade. More will join them. Brazil can ship sugarcane ethanol out the yin yang and also uses natural gas vehchles. While we insist on using ineffiecent Corn based ethanol and burn gas as a waste material.
Peter Lynch said when picking stocks go to the store and see what people are buying. Well people are buying guns but the gov will fuck that up as an investment.
I feel quite certain that there is a large number of people who have no clue how many in this country are living. I'm talking working people who had there IRA's wiped out, there jobs shipped overseas or their wages slashed and working conditions made worse by bosses that know you don't kiss ass theres 68 people out there who will take your job (the amount of applications one company got here for a lousy low paying job).
I love it when the faux/wanna be revolutionaries talk about their guns. Besides taking on a government that will crush your ass, the deer will be wiped out in 3 days and rot for lack of money to keep the carcus cool.
So actually, I really do not care how many digi dollars Ben has printed up. As far as I'm concerned they don't exist. They are vapor, an illusion used to further fatten the wallets of the true criminals cause they ain;'t doin the first damn thing they were supposed to do via QE.
It makes me sick to see the pain a bunch of fucking politicos and banksters have caused. Sicker still that for the most part people either can't or won't do a fucking thing about it!
Some places money can create oil.
Other places . . . there's no point in drilling because there's nothing there.
The latter are getting more common every day.
"...Biggest 3-Day Surge In 8 Months Drives Oil To 5-Week High On No News..."
who needs news when you have qe to infinity?
What a relief to know that fuel prices aren't included in the CPI and that even major increases in gasoline prices won't contribute to inflation !!
And don't forget increased gas prices show increased consumer spending which shows growth!
rape is legal
Current fuel prices in the U.S. and Europe have reached a stable, high plateau.
More like a stable floor.
Uh-Oh, we're going to need more money to buy this more expensive oil and gas. Bernanke, you better man your presses and start printing, faster than before! Inflation to infinity, and beyond, that's your motto, you stupid motherfucker!
At one point in time Bernanke said the FED could not do this by itself. It needed the help of congress.
WE are fucked again.
Funny how Cyprus is fixed, and the most popular post on my blog is "Maui Fun" which is a good one, by the way, if thinking of going to Maui, this is the real deal shite to do.
http://oahutrading.blogspot.com/2013/03/maui-fun.html
Can someone more saavy than I put up a chart of global freight? I'm trying to follow along with EKMs train of thought on broken supply chains. Bloomberg has an article about people moving on to Target and Costco because of Wal-Mart empty shelves.
I'm wondering if Wal Mart is only empty first because the locusts feed there first, and if Target and Costco won't be experiencing similar shortages soon.
Edit: Yes I read the Bloomberg article. No, I DO NOT BELIEVE that this is just an issue of the employees not restocking the shelves with inventory which is in the back of the store.
Everyone feels good now. No problem with $6/gal gasoline.
Traders time to boost the prices.
Keep printing Bernanke and the fed driving up oil and food. When people start rioting in the streets because you have gone too far you can call in Janet's DHLS with her 1.6 billion rounds and mow down the hungry people.
no problem with $6 gasoline because no one has a job, let alone one that requires a 70 miles to work. sitting at home, which is the new new cash machine according to an MSM headline this morning, shopping on amazon.
Easy to have everyone fight each other. Animals are not that stupid, but we are.
DHS will give out free ammo so that you do the NWO's dirty work for them. "JUst US" is served, bona bigtit.
oil surging, treasury yields at one-month lows, Euro periphery stocks in trouble, Euro in trouble ....
and US stocks remain firmly in no-volume, no-news-matters-except-Ben's-got-our-back la-la land.
And people are supposed to believe this is somehow good for the economy and the public at large?
They believed Hank Paulson when he ripped us off $700 billion based on a cocktail napkin presentation to Congress to bail his buddies. So why not?
Perhaps someone has taken threats from Kim Jong... il?...Um? Un?... Oh? never mind...
It is Scum Dung Kill, get it right
This volatilty is exactly the reason I don't count food or fuel in my spending budget. When the price gets too high I cook up an iPad for dinner.
High-Tech - It's what's for dinner!
Plus it's chock-full of those healthy whole diodes. No trans fats either.
All of your gas tanks belong to us...Happy motoring this Easter weekend.
Just another green shoot. Move on.
Another green shoot right up the poop chute! I wonder if this means I'm gay now?
It's just trying to catch up to its runaway cousin Natty
Still a long way away from it's high several years ago. Wasn't it north of $15/Mcf?
The demon murderers that own the oil companies are going in for the kill. They do this before every world economic collapse. Not to mention that Bernanke bucks have finally hit the oil markets.
Oil go up. Oil go down. Average gas price approaches $4/gal, oil go down.
Latest Jean Laherrère modeling and projections :
http://i.bnet.com/blogs/laherrere_all_liquids_production_1900-2200.jpg
From :
http://tribune-pic-petrolier.org/wp-content/uploads/2013/03/oilgasprodfo...
Did Jean Laherrère figure in the natural gas in the eastern Mediterranean?
Jean won't have to worry about the other 2/3ths of the Mediterranean. There's no gas there. I've got BP's word on it. And you can take their word to the bank.
The XOI.X model I follow has been suggesting an upward breakout in prices for a while.
Ok, I know I'm going to get junked to the bejeesus for this, but doesn't anyone realize that this is just the WTI/Brent spread narrowing, and the only people in the US that pay for gas based on WTI live in the mid-west or west Texas?
Gulf, West and East coasts all refine oil based on Brent or LLS pricing.
WTI Oil has been on some wild swings in the last couple of days.
http://bullandbearmash.com/chart/spot-wti-oil-daily-climbs-early-falls-c...
End of a corrective move up is likely what is occurring. Next leg down heading for the 80s. Rising US Dollar and rising oil prices - doesn't quite work.
Don't know if I'd be using charts for WTI until it's caught up w/ Brent. Logistics at the end of the Seaway have more to do w/ pricing than anything else. If the logjam down there is truely over, then WTI is net up vs Brent until parity.
Whaddya mean 'no news'? I figured oil was due for a pullback so I took a small short position. It's my fault. I'm as bad as Dennis Gartman these days.
The money printing oil inflation moves us closer to the China/Japan war.
China's drone war machine goes into hyper-drive:
http://freebeacon.com/game-of-drones/
The two bases in the Bohai Sea are located at Yingkou and Dalian to provide surveillance of the Bohai and Yellow Seas.
China called U.S. aircraft carrier exercises held in the Yellow Sea three years ago “a threat to China” even though the carrier maneuvers were carried out in international waters.
The maritime surveillance drones provide high-definition remote imagery and will be used by China to respond to emergencies in the region and also to identify what China claims are illegal resource extraction from undersea gas and oil deposits.
U.S. officials regard recent highlighting of attack drones as a sign that Beijing remains intent on taking control of the Senkakus.
The increased use of drones by both China and Japan is expected to increase tensions over the Senkakus, the officials said.
Love this bit:
China’s drone program is believed to have benefited from its aggressive economic and cyber espionage operations against the United States. Those efforts have included breaking into both government and defense industry networks and stealing valuable drone technology.