• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

Goldman Crucifies Muppets Again, Closes Long Brent Position With 15.48% Loss

Tyler Durden's picture


Another day, another muppet bites the dust.

From Goldman:

Brent pressured as European and Chinese concerns resurface


Despite recent price action, current fundamental data looks tight


After rebounding $2/bbl on Tuesday, Brent sold off again over the past two days and closed at 103.11 as of Friday, the lowest level in 9 months. By the time of writing, Brent is down a further $2.00/bbl overnight on the back of disappointing Chinese activity data. This suggests that in the tug of war between tight global fundamentals and the negative sentiment created by weak European product markets and fears of further Chinese slowdown, the latter currently prevail. These concerns have weighed on the market even as global inventory data for the end of March remains close to last year’s low levels, suggesting that the market remains quite tight.


But product prices tell another story


Nevertheless, product cracks, and particularly European product cracks, have come under significant pressure, raising concerns that European demand is weaker than expected, which in turn pulled Brent prices lower. However, in our view, the weakness in European product cracks does not necessarily reflect deteriorating economic activity. In our view, the weakness in margins is likely the result of the normal seasonal trough in demand, combined with a growing overhang in European refinery capacity and strong competition for exports from US refiners and petrochemical producers. Therefore given our economists forecast for global growth, we expect that global petroleum inventories will follow roughly last year’s path, which suggest that the global oil market should remain quite tight.


Short term downside risk increase


We will not get clarity on whether this weakness in European demand is indeed just seasonal or whether it reflects something more lasting for another two months. In the meantime, European margins could suffer further as the European refinery turnaround season has peaked and more and more refineries are coming back from maintenance. This could put further downward pressure on Brent prices, which could be exacerbated when the large crude inventory  overhang in the US Midwest will is shifted to the US gulf Coast beginning in May. Consequently, we see some increasing short term risk to our trading recommendation to hold a long Brent crude GSCI position. We therefore close this position with a loss of 15.48% but will re-evaluate the opportunities once we get more clarity on the state of European demand.


And yes, for every muppet that bought from Goldman, Goldman sold to said muppet. Don't worry though, Goldman will crush it on its short Goldman call. Crush it.

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 04/15/2013 - 10:06 | 3449753 LawsofPhysics
LawsofPhysics's picture

Closing their paper psotion while filling up their tankers with the physical crude.  Classic.

Mon, 04/15/2013 - 10:09 | 3449780 prains
prains's picture

when do we go from diagnosis to surgery and somebody actually cuts the heart out of the beast?? 

let me know

Mon, 04/15/2013 - 10:11 | 3449781 The Juggernaut
The Juggernaut's picture

Unless youre GS

Mon, 04/15/2013 - 10:16 | 3449812 LawsofPhysics
LawsofPhysics's picture

Pretty well documented, here and elsewhere, that when GS wants to buy any commodity and take delivery, they will use all their connections/abilities to drive the price down.  Their lobbiests are working on getting the gov to release crude from the SPR, in order to "alleviate the pain muppets are feeling at the pump".  God's work and all that of course...

Mon, 04/15/2013 - 10:27 | 3449892 DaddyO
DaddyO's picture

Is this beatdown a clearer sign of the coming collapse! Would you not want to cause severe volatility to inhibit equilibrium?

The MSM is touting the "Recovery" while the PTB are ramping up the fleecing as they know the end of the Great Keyneian Experimant is near.

The real market math is a bitch to gloss over. You can only lie for so long before your sin will find you out.

Just Sayin...no surprise from this vantage point.

Better ramp up those preps, both financial and physical...


Mon, 04/15/2013 - 10:56 | 3450044 quintago
quintago's picture

They did make the right call on Gold.... just sayin...

Mon, 04/15/2013 - 11:23 | 3450240 LawsofPhysics
LawsofPhysics's picture

Does it matter?  So many paper promises, so little real assets or collateral.  Just saying...


Mon, 04/15/2013 - 13:11 | 3450923 tip e. canoe
tip e. canoe's picture

they made it cuz they knew it was going down...and when.

Mon, 04/15/2013 - 13:44 | 3451173 BorisTheBlade
BorisTheBlade's picture

Muppets must be grateful.

Mon, 04/15/2013 - 10:32 | 3449911 DaveyJones
DaveyJones's picture

it's as if...they're criminals


Mon, 04/15/2013 - 10:37 | 3449945 gmrpeabody
gmrpeabody's picture

For God's sake, Davey..., that's Goldman Sachs you're talking about. ;)

Mon, 04/15/2013 - 10:47 | 3449996 Richard Chesler
Richard Chesler's picture

Yeah but not just any criminals.
They have a license to steal.

Mon, 04/15/2013 - 11:20 | 3450212 bigbwana
bigbwana's picture

The Illuminati gave them the license to steal. But they ain't going nowhere. Their evil NWO has been crushed by the Galactic Federation, and they KNOW it. It is the will of God.

Mon, 04/15/2013 - 17:40 | 3453025 NihilistZero
NihilistZero's picture

Galactic Federation?  The will of Xenu???

Mon, 04/15/2013 - 10:17 | 3449830 freewolf7
freewolf7's picture

Muppets don't read ZH?

Mon, 04/15/2013 - 10:21 | 3449857 tip e. canoe
tip e. canoe's picture

yup, just like 08.
betya they're grabbing some good deals on tanker rentals.

Mon, 04/15/2013 - 10:25 | 3449887 Debeachesand Je...
Debeachesand Jerseyshores's picture

With a glut of tankers floating at anchor,that should be no problem.

Mon, 04/15/2013 - 10:09 | 3449771 DeadFred
DeadFred's picture

It's not easy being green

Mon, 04/15/2013 - 10:12 | 3449794 TeamDepends
TeamDepends's picture


Mon, 04/15/2013 - 10:22 | 3449861 tip e. canoe
tip e. canoe's picture

not easy ridin silver either.
she's a wild one.

Mon, 04/15/2013 - 10:24 | 3449869 Cpl Hicks
Cpl Hicks's picture

Poor Kermie!
I feel so bad.

Mon, 04/15/2013 - 10:08 | 3449773 navy62802
navy62802's picture

Crushin it.

Mon, 04/15/2013 - 10:11 | 3449784 Agent P
Agent P's picture

Oh, Kermie.

Mon, 04/15/2013 - 10:10 | 3449786 EL INDIO
EL INDIO's picture

He no longer has happy feet.

Mon, 04/15/2013 - 10:12 | 3449796 Martin T
Martin T's picture

GS is the new Kerminator - "I'll be back"

Mon, 04/15/2013 - 10:12 | 3449798 mdtrader
mdtrader's picture

What day does the stock market crash?

Mon, 04/15/2013 - 10:19 | 3449836 ThalesOfMiletus
ThalesOfMiletus's picture

Oh no, you don't! It's just muppets, muppets, muppets all the way down...

Mon, 04/15/2013 - 10:25 | 3449878 Cpl Hicks
Cpl Hicks's picture


Mon, 04/15/2013 - 10:14 | 3449802 The Dancer
The Dancer's picture

GS sees these clients the same way that a lion views an injured gazelle...lol...easy prey!

Mon, 04/15/2013 - 10:15 | 3449807 firstdivision
firstdivision's picture

....and now time for me to close my short USO position.  Thanks GS Prop!

Mon, 04/15/2013 - 10:15 | 3449810 ziggy59
ziggy59's picture

Poor kermit, we knew you well...but theres always more muppets to fleece..
..See gold and silver charts!

Mon, 04/15/2013 - 10:17 | 3449826 orangegeek
Mon, 04/15/2013 - 10:17 | 3449835 swissaustrian
swissaustrian's picture

They're also closing their short gold position right now, but aren't going to tell muppets until we're back above 1525

Mon, 04/15/2013 - 10:22 | 3449865 new game
new game's picture

only a fool would be in ANY paper markets. - HEY jmfo.

soon to be gone fishing (lots of pm to hydropothicate)...

waiting patiently for the ice to go out.

Mon, 04/15/2013 - 10:22 | 3449866 yrbmegr
yrbmegr's picture

I wonder how much Goldman gained as they closed this recommendation for a loss.

Mon, 04/15/2013 - 10:25 | 3449876 new game
new game's picture


Mon, 04/15/2013 - 10:26 | 3449883 Weyland_Yutani
Weyland_Yutani's picture

It is a well known fact that Goldman Sachs is pissing on their clients. Why are the same clients just swallowing?

Mon, 04/15/2013 - 10:25 | 3449885 ABG LINE
ABG LINE's picture

LoL @ the Kermit picture! ROFL! Thanks ZH! :-D


Mon, 04/15/2013 - 10:33 | 3449923 ToNYC
ToNYC's picture

Muppets are not crucifiable: they did not simultaneously piss off both Church and State, but rather read the script like cattle and it happened so fast; they were stunned.

Mon, 04/15/2013 - 10:53 | 3449959 Dr. Engali
Dr. Engali's picture

So in other words...it's time to go long.

Mon, 04/15/2013 - 11:16 | 3450166 ekm
ekm's picture

No. The muppers are left with longs in their hands. Crash will occur, so GS can buy again at $60, or 70 or 50 and start storing crude again.

Mon, 04/15/2013 - 10:58 | 3450048 CheapBastard
CheapBastard's picture

is GS responsible also for the 40% plunge of AAPL?

Mon, 04/15/2013 - 11:02 | 3450076 Sudden Debt
Sudden Debt's picture

Frogs don't stand a chance in France...

Mon, 04/15/2013 - 11:06 | 3450098 The Dancer
The Dancer's picture

Are there any consoiracies out there about Jobs' death...why is it always the doers and makers that die early...Breitbart, Jobs, etc....why can't some of the scum get wasted!

Mon, 04/15/2013 - 17:47 | 3453073 NihilistZero
NihilistZero's picture

Jobs was a corprtist scum who used his megalomania to push the product of the real "makers" Wozniak and such.  He was the worst of Bill Gates.  All the ego and ruthless drive with none of the coding knowlege.  He did have a good feel for asthetics though :-)

Mon, 04/15/2013 - 11:13 | 3450144 Kina
Kina's picture

And so where was the CFTC when 400 tons of fake gold were dumped on the market?

I forgot....we know what they are.


How about $1trillion class action against the Fed. Common Wikileaks give us the documentation smoking gun of this current iteration of Fed corruption.

Mon, 04/15/2013 - 11:16 | 3450165 Herkimer Jerkimer
Herkimer Jerkimer's picture





I am… Verklempt.



Mon, 04/15/2013 - 11:41 | 3450361 GoldRetriever
GoldRetriever's picture

Yet most of the muppets remain amphibious as to what is happening.

Mon, 04/15/2013 - 12:37 | 3450750 Curtis LeMay
Curtis LeMay's picture

You really have to figure that 200 West is shovelling with both hands when it has the likes of Stolper still drawing paychecks...

Mon, 04/15/2013 - 12:50 | 3450819 BullyBearish
BullyBearish's picture

"To whom do lions cast their gentle looks? Not to the beast that would usurp their den. The smallest worm will turn being trodden on, And doves will peck in safeguard of their brood"

Do NOT follow this link or you will be banned from the site!