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Crude's Worst Day In 13 Months Sends Trannies Tumbling

Tyler Durden's picture




 

WTI crude is back below $95.50 - its lowest in a month - as the price of the front-month has dropped over 3% today - its biggest single-day drop since November 2012. USD strength (+0.3%) is being ignored for now by gold and silver which are jumping handily (back over $1230 and $20 respectively). US equities are suffering for the first day of the year for the first time since 2008 (which ended -38.5%) led by Russell 2000 and the Dow Transports - which is seeing its worst day in 4 months.

 

Oil is having a bad day - and its not a WTI-Brent issue as the spread is stable...

 

and the Trannies are tumbling...

 

Along with all the other major indices... from Friday's panic-buying highs

 

Charts: Bloomberg

Thursday Humor Bonus Chart: We can only assume that Bloomberg did not get the memo on the 100-to-1 reverse split rescaling of Venzuela's stock index... or it really is -99.9%...


 

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Thu, 01/02/2014 - 15:48 | 4294035 hungarianboy
hungarianboy's picture

Short EUR/USD folks.

Thu, 01/02/2014 - 15:51 | 4294048 nope-1004
nope-1004's picture

3% in one day is a totally normal, free, unmanipulated commodity complex.  After all, it's not like it moved 33% in one day, which one may then at that point wonder if the these totally free, unfettered, commodity markets are intervened in just a bit.....

/s

Entire complex is rigged.

Thu, 01/02/2014 - 15:56 | 4294085 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The crude oil market is nothing more than a black hole with unbacked contracts jacking up prices. It is a Wall Street tax on all productive people.

Thu, 01/02/2014 - 16:06 | 4294106 Soul Glow
Soul Glow's picture

The KSA is using salt water to blow out the holes that have given oil for the last 90 years, Canada is having to destroy the world's largest natural fresh water aquifer and are seperating the tar by heating water with NG, and Mexico is running dry.  America is causing sink hole after sink hole going after very small finds.  Digging for oil is getting very expensive.

Thu, 01/02/2014 - 16:23 | 4294162 malikai
malikai's picture

Beware, PM longs.

Last time this happened with crude, gold/silver got curb stomped shortly after.

Thu, 01/02/2014 - 16:30 | 4294183 Soul Glow
Soul Glow's picture

I agree that over the long term oil and PMs move together, but even then, that means there is either a lot of downside room for oil, or upside for PMs.

Thu, 01/02/2014 - 17:34 | 4294424 Colonel Klink
Colonel Klink's picture

Oh MY god, does that mean my phyzz will shrink in weight?

Thu, 01/02/2014 - 16:48 | 4294240 disabledvet
disabledvet's picture

hilariously the problem is the exact opposite actually hence "all Nuclear Regulatory Commission Personnel are allowed to take a permanent vacation and still be considered on the payroll." Can't even undercut the competition when you sell electricity with negative pricing? That's an intersting business model. Seriously though (because you really can't make this stuff up) this "dirt cheap oil and natural gas" (and it is dirt friggin cheap) pays for very little..and the whole computer prograsm only works if that price moonshots. Once the price collapses (again) the machine orders "fat fingers all around." as a certifiable transportation specialist I can tell you right now...if there is a Jones Act shipping boom you're gonna wish you never heard the term "transportation play."

Thu, 01/02/2014 - 17:04 | 4294287 AngelEyes00
AngelEyes00's picture

Soul Glow, the KSA (Saudi's) used salt water many years ago until they realized it corroded their pipes.  They then pumped salt water into desalination plants and the fresh water gets pumped down deep, because it is heavier than oil, so that pushes the oil up.  Originally there was enough natural pressure to push the oil up but later they needed water and I mean millions of barrels a day, even more than the oil that is extracted.  Where the extra water goes I have no idea.

Right now oil price needs to stay in the goldilocks range between too expensive for the world economy and not so cheap non-conventional sources go offline, or flow rate will drop & we will be shit outa luck.

 

 

Thu, 01/02/2014 - 23:53 | 4295518 DaveyJones
DaveyJones's picture

nice post. interesting thing is that Saudi acquifers are set to go dry in 2014. That's right, 2014.  Like every other oil producing country, they will need to use more and more at home (for them, to desalinate)...exporting less and less. 

Thu, 01/02/2014 - 17:26 | 4294375 aVileRat
aVileRat's picture

This is by far the dumbest thing I have read on the internet.

KSA is not 'blowing out the holes', pressure injection sweeps: google it. After you run a pressure sweep you still can get about 15% more OIP out of the rock using thermal/recompletion schemes. Salt water was a stopgap, they switched out and diluted the sodium to non-potable formation water about 5 years ago.

SAGD water volumes. Go google it. Come back when you know the difference between potable and non-potable.

Mexico: go look at a spud list of PEMEX vs. the Louisana coast/margin.

Sink holes ? Bitch please. Go google why the pillows are moving before typing.

It's not digging. You want to see some digging cost inflation ? Go check out a gold mine. Cat will go bankrupt before anyone begins sweating about where your coil tube is moving to next. Just keep stacking, and stick to reading like the bitcoin kiddies.

 

 

Thu, 01/02/2014 - 16:01 | 4294092 Soul Glow
Soul Glow's picture

Considering oil exporting nations need over $100/b to back any marginal profit it is a wonder the price isn't higher.  Oh yeah, the PWGFM has it all worked out.

Thu, 01/02/2014 - 16:14 | 4294127 slotmouth
slotmouth's picture

Short Chinese banks.

Thu, 01/02/2014 - 15:54 | 4294039 Dr. Engali
Dr. Engali's picture

I guess Buffet needs a few more trains to derail so he can collect some insurance money from Geico.

 

In other news, don't get shot in Kalamazoo Michigan. People will step over you and keep on shopping.

 

http://www.nydailynews.com/news/national/customers-walk-dead-body-michigan-man-killed-store-doorway-article-1.1564163

Thu, 01/02/2014 - 15:50 | 4294041 Central Bankster
Central Bankster's picture

Well if you can't get your money out of the caracas index to purchase things, isn't it effectively down 99.9%?

Thu, 01/02/2014 - 15:52 | 4294067 DebtSlaveZombie
DebtSlaveZombie's picture

PROFIT TAKING....PROFIT TAKING....PROFIT TAKING....  Great opp to buy.  DOW 16,000 is the support.  S&P 1800 is support.  Handsome profits for all by July.  Buy this dip.  Geesh the market is giving you a gift.  The rich are leaving the door open a little for ya.  Long S&P. Sell into gold rally.  Short the yen.  Easy frinkin money here.  Some people will make their year this month.

Thu, 01/02/2014 - 15:56 | 4294069 Traianus Augustus
Traianus Augustus's picture

Hockey stick save in 4...3...2...1

Thu, 01/02/2014 - 15:54 | 4294072 q99x2
q99x2's picture

Trannies, Who said Trannies. Slowly I turn Inch by inch Step by step.

Thu, 01/02/2014 - 15:55 | 4294075 Soul Glow
Soul Glow's picture

Sucks for stock owners.

Thu, 01/02/2014 - 15:55 | 4294080 Sudden Debt
Sudden Debt's picture

oil is down... because... we all... drive electric cars?

Thu, 01/02/2014 - 16:23 | 4294110 Soul Glow
Soul Glow's picture

If we see another day like this without a rebound it will confirm a coming drop in stock prices.

JPY outpacing USD so it looks like a bad night for Abe's Nikkei.

Thu, 01/02/2014 - 16:31 | 4294102 HUGE_Gamma
HUGE_Gamma's picture

this 1% dip is the buying opportunity of a lifetime.. generational lows as far as im concerned.. POMO will be back next week and we could see ALL TIME HIGHS as early as the 330 ramp tomorrow!! the low of the year is in.

Thu, 01/02/2014 - 17:20 | 4294353 AngelEyes00
AngelEyes00's picture

It's really sick that the only thing pumping up the stock market at this point is POMO.  I mean what the hell has happened to this country?

Thu, 01/02/2014 - 16:12 | 4294121 DebtSlaveZombie
DebtSlaveZombie's picture

I like how everyone references 2008 when events occur.  We will never let another Lehman event happen.  Lehman was allowed to collapse and that triggered all the stops.  The rest is history.  War is the only thing that will trigger the next collapse.  The Fed and US Government will back anything that looks similar to 2008.  Europe said they will do whatever it takes.  Japan is stating they will print until they run outta ink.  Global printing on a massive scale.  Never been done before.  This could occur for years before we see the consequences.  The Fed doesnt have to sell whats on their balance sheet...they can just let it mature.  Inflation can be exported, which is what the US has been doing.  We have the most gold and most advanced military in the world by far.  Technologically ahead of all countries by decades.  This is the biggest run up in asset prices in history.  We are at the base of the peak.  We will all under estimate just how far this bull will run.  Two to three more years then the euphoric phase... S&P 5000 at the peak.  What happens next?  War?  Currency collapse?  who knows.  But 18-20% returns for next two years look pretty well set.  Remember the NASDAQ in 1999?  Lol.  That thing was a tidal wave.  The euphoric phase was epic.  This time will be very similar.

Thu, 01/02/2014 - 16:28 | 4294177 Soul Glow
Soul Glow's picture

Where was the President's Working Group in 2008?  If the PWG can "save the world" now, why didn't they then?  Also, why wouldn't they let a collapse happen?  Problem, reaction, solution.  You think DC is done with whatever crazy agenda they started 100 years ago when they instituted the Fed?

Thu, 01/02/2014 - 17:00 | 4294272 DebtSlaveZombie
DebtSlaveZombie's picture

Pretty simple. They wanted to see what happened if the free market acted on its own.  They didnt like what they saw (the abyss) so they jumped in to save it.  Now, they will not hesitate.  They won't be pushing bills through congress for approval.  The Fed will just act.  The President will just act.  We are way past the days of the free market acting alone.  We have passed the event horizon in the global economic recovery.  It's print and de-value your currency or die a slow death.  That's it.

Fri, 01/03/2014 - 10:51 | 4296387 skipjack
skipjack's picture

"Free market"

 

Bwahahahahahahahahahahahaha !!!!! Ho, ho, lolololololol ...

 

Another deluded sheeple of the propaganda masters speaks. 

 

What fucking free market ? There hasn't been one in over 100 years,you blithering idiot.

Thu, 01/02/2014 - 17:27 | 4294379 AngelEyes00
AngelEyes00's picture

"We will all under estimate just how far this bull will run."

Whenever people start talking or posting like that you know the end of the bull run is nigh.  I think people have decided to exit stage left.

And when they start talking about how low can it get will be the time to jump back in.

 

Thu, 01/02/2014 - 16:16 | 4294136 stevegee58
stevegee58's picture

Tumbling trannies?  No problem.  Just don't let 'em wear high heels.

Thu, 01/02/2014 - 16:23 | 4294154 SheepDog-One
SheepDog-One's picture

Pretty crazy how equities being down not even near 1% can be called a 'worst day in months'.

Thu, 01/02/2014 - 16:29 | 4294180 Freewheelin Franklin
Freewheelin Franklin's picture

I'm only long on gay midget trannie porn.

 

 

Very loooooooooooong.

 

heh heh heh

Thu, 01/02/2014 - 16:34 | 4294195 CheapBastard
CheapBastard's picture

I'll add USO at 30 but hold off until then. HAL and SLB are going to correct sharply too perhaps. Right now with austerity, defaults, etc we are in a deflationary depression in many sectors. Yellen needs to double the $85 billion, not cut back.

Thu, 01/02/2014 - 16:36 | 4294198 TideFighter
TideFighter's picture

I'm not enjoying "extra" income right now, ACA caused my own premiums to go up 80% with more deductible, higher out-of-pocket, and meds that I now pay for myself. My receivables suddenly went 30% out 90 days, and the bank has been crunching my credit line in chunks every time I make a large payment. Even F500 companies are paying slow. My renters are paying late, etc. 

 

Why is oil going down? I feel less inclined to jump in my car and travel anywhere. I don't fly as much because I don't want the TSA to touch my junk. I know this is just a feeling, but I have change my habits, intentionally or not.

Thu, 01/02/2014 - 16:41 | 4294213 orangegeek
orangegeek's picture

Bearish forecast on a monthly basis

 

http://bullandbearmash.com/chart/wti-oil-monthly-closes-sharply-100-resi...

 

A stronger USD remains the key - a weaker Euro will drive this.

Thu, 01/02/2014 - 16:58 | 4294261 CrashisOptimistic
CrashisOptimistic's picture

Overhyped Libya field returning to production story.

Probably some development in the Iran deal that isn't public yet.

Thu, 01/02/2014 - 20:45 | 4294991 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Let's see. Trading down to 92 in thin Thanksgiving mkts. Explodes up, hits 100 near year end in thin mkts, then drops 5% in a couple of days in still thin new years mkts.

No Dr. Yellen, no excess here. Carry on. Markets are a steal, aren't they?

Lol.

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