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 | 3714738 Seasmoke
Seasmoke's picture

Fireworks coming soon.....

Tue, 07/02/2013 - 14:55 | 3714783 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 | 3714875 francis_sawyer
francis_sawyer's picture

Horses bitchez!

Tue, 07/02/2013 - 15:54 | 3714973 ZerOhead
ZerOhead's picture


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 | 3715034 Buckaroo Banzai
Buckaroo Banzai's picture

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

Tue, 07/02/2013 - 20:09 | 3715925 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 | 3714739 CPL
CPL's picture

Come on 150!

Tue, 07/02/2013 - 14:54 | 3714787 Golden_Rule
Golden_Rule's picture

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

Tue, 07/02/2013 - 16:25 | 3715126 yogibear
yogibear's picture

That would be sweet if we broke the high.

Tue, 07/02/2013 - 14:49 | 3714756 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 | 3714885 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 | 3714926 Rainman
Rainman's picture

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

Tue, 07/02/2013 - 15:30 | 3714932 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 | 3714763 drink or die
drink or die's picture

This is a sign of green shoots!!!!

Tue, 07/02/2013 - 16:57 | 3715223 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 | 3714765 Ancona
Ancona's picture

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

Tue, 07/02/2013 - 15:34 | 3714940 DaveyJones
DaveyJones's picture

and that's a big "us"

Tue, 07/02/2013 - 14:52 | 3714767 Hohum
Hohum's picture

Food for thought:


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 | 3714796 FieldingMellish
FieldingMellish's picture

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

Tue, 07/02/2013 - 14:52 | 3714772 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 | 3714954 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 | 3714774 hound dog vigilante
hound dog vigilante's picture


More of that damned deflation...


Tue, 07/02/2013 - 15:38 | 3714962 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 | 3715075 HowardBeale
HowardBeale's picture

Gold to be priced by the barrel soon...

Tue, 07/02/2013 - 14:53 | 3714779 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 | 3714804 FreeMktFisherMN
FreeMktFisherMN's picture

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

Tue, 07/02/2013 - 14:54 | 3714788 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 | 3714792 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 | 3715046 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 | 3715246 SubjectivObject
SubjectivObject's picture

Check the water content.

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

Tue, 07/02/2013 - 14:59 | 3714810 conspicio
conspicio's picture

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

Tue, 07/02/2013 - 15:00 | 3714813 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 | 3714862 Headbanger
Headbanger's picture

No..   It's HYDROGEN!   


Tue, 07/02/2013 - 15:13 | 3714864 Headbanger
Headbanger's picture

No..   It's HYDROGEN!   


Tue, 07/02/2013 - 15:00 | 3714815 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 | 3714816 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 | 3714826 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 | 3714834 bnbdnb
bnbdnb's picture

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

Tue, 07/02/2013 - 15:05 | 3714836 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 | 3714871 Debt Slave
Debt Slave's picture

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

Tue, 07/02/2013 - 15:19 | 3714887 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 | 3715080 aerojet
aerojet's picture

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

Tue, 07/02/2013 - 16:28 | 3715132 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 | 3715211 StarTedStackin'
StarTedStackin''s picture

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

Tue, 07/02/2013 - 17:08 | 3715253 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 | 3715680 starman
starman's picture

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

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