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WTI Crude Nears $100 - Highest Close In 13 Months

Tyler Durden's picture





 

With the highest close in 13 months, WTI tested as high as $99.87 intraday. Must be all the global growth? Not good for the US economy/market...

 


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Tue, 07/02/2013 - 14:47 | Link to Comment Seasmoke
Seasmoke's picture

Fireworks coming soon.....

Tue, 07/02/2013 - 14:55 | Link to Comment Say What Again
Say What Again's picture

This is BULLISH for ES -- Right?

I mean -- this gives the bernank reason to keep on buying shit from the primary dealers with newly created electronic fiat.

That reminds me -- what is the difference between bernank's electronic fiat and bitcoin?

Tue, 07/02/2013 - 15:16 | Link to Comment francis_sawyer
francis_sawyer's picture

Horses bitchez!

Tue, 07/02/2013 - 15:54 | Link to Comment ZerOhead
ZerOhead's picture

$100?

Yes We Can!

Anyway... oil has been in a very deflationary tailspin since Mr. Market briefly priced it at $145 back in 2008.

This $45 deficit has reduced cash flow to the global oil producers by (80MM/day*365*45) or roughly $1.5 trillion of sweet bottom line dollars per year...

Of course that $1.5T at a 10 cap amounts to an astounding fictional market loss of 15 trillion dollars.

Better hook these guys up to the Fed's discount window...

Tue, 07/02/2013 - 15:56 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Well, either that, or it's a triple-top breakdown.

Tue, 07/02/2013 - 20:09 | Link to Comment akarc
akarc's picture

Bingo, Keep in mind what oil did in 2008. If the prevailing wisdom here is that sooner or later stocks must succumb to gravity, which they must.

Then so must oil.  You can have a shit load of it, but if china ain't using it and the u.s ain't using it, who but the speculators are supporting it.

Either gold skyrockets or oil plummets and.....and stocks have little value to those, a very large heap of those, who do not own them. 

When you ride through a rural town and note that even the Ace Hardware is closed, along with the several buildings next to it along with the empty houses and visit the motels w/ families to a room and a cheap BBQ grill out front ya gots to ask yourself, whose fooling who? 

The 1% will drown in their oil and stocks.

This time is not different at all. The wealthy will be bailed out again and the poor will have to find new bridges to sleep under.

Sooner or later the wealthy will have to cannabalize themselves. 

Tue, 07/02/2013 - 14:47 | Link to Comment CPL
CPL's picture

Come on 150!

Tue, 07/02/2013 - 14:54 | Link to Comment negative rates
negative rates's picture

I got 2700 miles of reserve at about $2.75/gal. So if the shtf i'll double my quantity quick.

Tue, 07/02/2013 - 14:54 | Link to Comment Golden_Rule
Golden_Rule's picture

Hell yes, and how about a 3% 10 year too.

Tue, 07/02/2013 - 16:25 | Link to Comment yogibear
yogibear's picture

That would be sweet if we broke the high.

Tue, 07/02/2013 - 14:49 | Link to Comment Flakmeister
Flakmeister's picture

Or could it simply be that the artificial spread that existed  between WTI and Brent  because of a infrastructure mismatch is being arbed away?

Tue, 07/02/2013 - 15:18 | Link to Comment dcb
dcb's picture

that was of course the official way to explain, but the real reaqson was riggin the price of wti buy the big bous who would take deliver and ship making huge profits. the cost of shipping not even close to explaining price differences. this should have been investigated by the authorities a long time ago, and that difference was deserving of an investigation.

the main reason I have stuck with wti was because I knew there was no reason for this to exist.

 

in view of all the investigations maybe they have decided to end it.

don't forget goldman changed benchmars, and the arb dropped in a big way. really deserves investigation, wonder what goldman positions have done since move of benchmark, before benchmark, etc.

this smacked of corruption all over it.

Tue, 07/02/2013 - 15:28 | Link to Comment Rainman
Rainman's picture

Risk off bonds, stocks, pms ignites the fiat pump into oil .....logistics are meaningless.

Tue, 07/02/2013 - 15:30 | Link to Comment Flakmeister
Flakmeister's picture

Sorry, I cannot accept this as being anything close to being true....

Be straight with me, this is what you want it to be because the alternative, which is supported by honest analyses of the data, is too frightening...

Tue, 07/02/2013 - 14:50 | Link to Comment drink or die
drink or die's picture

This is a sign of green shoots!!!!

Tue, 07/02/2013 - 16:57 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

It is.

In Japan.

There is a problem, btw, with saying this is Egypt, and that is that Brent's % move was half WTI's  Brent is Europe centric and a Suez canal disruption would affect Europe more than anywhere else.

So if this was about Egypt, it would have hit Brent more than WTI.  What is really happening is generalized scarcity and maybe an uptick in Japanese demand.

Tue, 07/02/2013 - 14:51 | Link to Comment Ancona
Ancona's picture

Not to worry, this is good.........for someone........just not us.

Tue, 07/02/2013 - 15:34 | Link to Comment DaveyJones
DaveyJones's picture

and that's a big "us"

Tue, 07/02/2013 - 14:52 | Link to Comment Hohum
Hohum's picture

Food for thought:

http://theautomaticearth.com/Finance/oil-and-credit.html

Disagree with the numbers if you wish, but the 130 barrels per day per well in the Bakken isn't a good sign.

Tue, 07/02/2013 - 14:56 | Link to Comment FieldingMellish
FieldingMellish's picture

Decline rates on the new wells are "cliff-like". 

Tue, 07/02/2013 - 14:52 | Link to Comment Al Huxley
Al Huxley's picture

At least there's no inflation, if there were then these rising prices would be a lot harder to take.

Tue, 07/02/2013 - 15:37 | Link to Comment DaveyJones
DaveyJones's picture

it's mutually feeding. debt based system on fantasy of infinite growth with the most important resource getting more expensive to obtain... 

Tue, 07/02/2013 - 14:52 | Link to Comment hound dog vigilante
hound dog vigilante's picture

 

More of that damned deflation...

 

Tue, 07/02/2013 - 15:38 | Link to Comment SubjectivObject
SubjectivObject's picture

Gold going to 750!!!

So that you can't buy as much oil with it.

Tue, 07/02/2013 - 16:07 | Link to Comment HowardBeale
HowardBeale's picture

Gold to be priced by the barrel soon...

Tue, 07/02/2013 - 14:53 | Link to Comment slaughterer
slaughterer's picture

API Crude/Gasoline/Distillates Stock miss will not even matter at 4:30pm.  Thanks Ben and the Middle East/US clusterf*ck.  WTI is going to go parabolic it seems.  

Tue, 07/02/2013 - 14:59 | Link to Comment FreeMktFisherMN
FreeMktFisherMN's picture

I trade crude futures and those inventory #s are often a shell game. 

Tue, 07/02/2013 - 14:54 | Link to Comment roadhazard
roadhazard's picture

Bring it on, I want this place to come to a grinding halt. Only then will things change.

Tue, 07/02/2013 - 14:54 | Link to Comment Yen Cross
Yen Cross's picture

     At this rate my Albacore tuna is going to be in 4oz cans when I go to the market next week.

Tue, 07/02/2013 - 15:59 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Yeah it's funny how they snuck the 5 oz can under our noses a few years back.

Some of the store brands still sell a 6 oz can. I'm guessing because they are on old production lines and it's not worth their while to make the capital upgrade to the 5 oz can.

Tue, 07/02/2013 - 17:04 | Link to Comment SubjectivObject
SubjectivObject's picture

Check the water content.

Might be about 5 oz., in that 6 oz. can.

Tue, 07/02/2013 - 14:59 | Link to Comment conspicio
conspicio's picture

Time to buy rail stocks, bitchez. That WTI ain't gonna move itself.

Tue, 07/02/2013 - 15:00 | Link to Comment entropy93
entropy93's picture

I thought we'd been saved from Peak Oil by fracking. oops. Seriously talk about hard core denial. 

Tue, 07/02/2013 - 15:13 | Link to Comment Headbanger
Headbanger's picture

No..   It's HYDROGEN!   

LMAO!

Tue, 07/02/2013 - 15:13 | Link to Comment Headbanger
Headbanger's picture

No..   It's HYDROGEN!   

LMAO!

Tue, 07/02/2013 - 15:00 | Link to Comment resurger
resurger's picture

If they shutdown the Canal, ES will hit 1800 in two days.

You can compensate the rise in gas by investing in STAWKS

Tue, 07/02/2013 - 15:00 | Link to Comment Poor Grogman
Poor Grogman's picture

Expect more QT. (Quantitative Tightening) obviously what used to be known as the markets didn't get the deflation message.

No sarc this time/

Tue, 07/02/2013 - 15:04 | Link to Comment misnomer00
misnomer00's picture

Stocks, bonds and real estate cannot absorb the heap of cheap money anymore. time for commodities to soak it up, Oil is always the first..

Tue, 07/02/2013 - 15:04 | Link to Comment bnbdnb
bnbdnb's picture

AUD/USD - WTI spread is getting a bit heavy.

Tue, 07/02/2013 - 15:05 | Link to Comment ghostzapper
ghostzapper's picture

Tyler - good and bad for the Spider.  bernanke been putting a floor under crude given the presence of the energy sector in the Spider.  crude at $65/barrel doesn't help Benny pump ES. 

Tue, 07/02/2013 - 15:15 | Link to Comment Debt Slave
Debt Slave's picture

$100 a barrel is gonna seem cheap, like $450 AU.

Tue, 07/02/2013 - 15:19 | Link to Comment sbenard
sbenard's picture

Thank you, Emperor Obama! We love you thiiiiis much! XOXOXO!

I makes me feel just warm and fuzzy sending all those billions to our new allies, the radical Islamists in the Mid-East! Because they love us sooooooooo much!

Tue, 07/02/2013 - 16:09 | Link to Comment aerojet
aerojet's picture

Just in time to fuck Americans traveling for the holiday weekend.

Tue, 07/02/2013 - 16:28 | Link to Comment yogibear
yogibear's picture

Bubble Bernanke and the Fed members are saying don't pay attention, there is  no inflation because we say so. Carry on muppets.

Tue, 07/02/2013 - 16:54 | Link to Comment StarTedStackin'
StarTedStackin''s picture

"It's Busch's fault, he's an oilman"

Tue, 07/02/2013 - 17:08 | Link to Comment Trampy
Trampy's picture

If you think $100 won't be breached, the simplest way to trade this is to write the 105 strike calls on CLQ3. They're ~20 cents each now with 15 days to expiry.

Tue, 07/02/2013 - 19:02 | Link to Comment starman
starman's picture

Youd think Oilbama would of have made some Muslim friends by now in the Emirates.

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