Oil Soars, Stocks Slide On Fears Of Iraq 3.0

Tyler Durden's picture


It seems blood on Iraq streets and infringements near oil reserves is enough to pop crude oil price, break the airlines bubble, stall the Trannies unstoppable surge, and spark volume selling through the US equity markets. We will be reassured that this is a buying opportunity and that 'nothing fundamental has changed' and the US is 'the cleanest dirty shirt' but when the Chinese are tamping down carry with flip-flopping CNY fixes, the ECB has shot his mini-bazooka, and we know the Fed ain't un-tapering anytime soon (as they are fearsome of complacency and financial fragility), it makes one wonder if the corporate buyback machine can overwhelm the geopolitical-risk selling pressure of the rest of the world. Trannies dropped to their worst day in 4 months as all major US equities reversed any Draghi gains. Treasuries were well bid (-6bps and lower in yield on the week) as gold also benefited from safe haven status rising up to $1275. Copper slipped further south. Oil was the big news, spiking up to $106.70 (9 month highs). It's not Tuesday - what did you expect? (and remember there are no Friday POMOs in June).


The Draghi Dream is over for Trannies, and Dow and just alive for the S&P (now let's see AAPL hold the Nasdaq up just one more day)...


It's not Tuesday for stocks...


or bonds...


As Oil surged and Transports (led by Airlines) tumbled...


Commodities were in the news as Palladium rolled over gold and silver bid on safety and oil surged...and copper slapped



The USD slipped...


Time for more random Japanese headlines because we lost 102 USDJPY and that means the Nikkei is down...


Charts: Bloomberg

Bonus Chart: Something spooky this way comes...

Your rating: None

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Thu, 06/12/2014 - 16:07 | 4849940 kowalli
kowalli's picture


Thu, 06/12/2014 - 16:12 | 4849962 kliguy38
kliguy38's picture

no...BOOYAH....there's money to be made!! There's GDP and Jobs killin' to be had.....and best of all there's debt to make.......its the best of ALL worlds

Thu, 06/12/2014 - 16:15 | 4849971 ParkAveFlasher
ParkAveFlasher's picture

All money and no credit make Jack a dull slave.  All money and no credit make Jack a dull slave.  All money and no credit make Jack a dull slave.  All money and no credit make Jack a dull slave.  All money and no credit make Jack a dull slave.

Thu, 06/12/2014 - 16:20 | 4849989 TheRideNeverEnds
TheRideNeverEnds's picture

exactly, besides the cost of blowing more shit up there is also the cost of replacing all those broken windows!


perpetual war is super bullish! 

Thu, 06/12/2014 - 16:30 | 4850022 TahoeBilly2012
TahoeBilly2012's picture

Send that fat fucking Jew Kagan down there and his fat ass Jew bitch wife Nudlehead...put their fat fucking asses out there instead of our sons.

Thu, 06/12/2014 - 16:33 | 4850029 Flakmeister
Flakmeister's picture


Hate to break it to you but it's an all volunteer force....

Thu, 06/12/2014 - 16:10 | 4849950 pound the vix
pound the vix's picture

Can't have that.  BOE Carne out with comments trying to save the fucking market. Corrupt Assholes. Wonder what spot price he is trying to save.

Thu, 06/12/2014 - 16:09 | 4849951 CrashisOptimistic
CrashisOptimistic's picture

All that matters is oil.

The rest is hand waving.

And you all, each and every one of you, know it.

Unlike the brain dead non ZH commenters.

Thu, 06/12/2014 - 16:13 | 4849963 simplejack
simplejack's picture




Who owns Iraq's oil now?

Thu, 06/12/2014 - 16:14 | 4849966 CrashisOptimistic
CrashisOptimistic's picture

Mother Gaia.

Thu, 06/12/2014 - 16:17 | 4849977 ZerOhead
ZerOhead's picture

Tony Blair's friends the Kurds are up around 20 billion barrels with the occupation of Kirkuk so far...

Thu, 06/12/2014 - 16:31 | 4850023 Flakmeister
Flakmeister's picture

When the markets expect ~3 million bpd to be available, 1/3 of that tends to get them antsy...

Reserves mean squat, it is all about the flow....

Thu, 06/12/2014 - 18:26 | 4850514 CheapBastard
CheapBastard's picture

The recent interviews with oil driller execs shows they believe oil to hit $125 by end of year, and that was BEFORE this escalation of war in Eye-Rack.

Thu, 06/12/2014 - 16:10 | 4849952 NDXTrader
NDXTrader's picture

Well, they've wiped away half of the losses in the last 15 minutes and after-hours. The criminal syndicate never sleeps

Thu, 06/12/2014 - 16:11 | 4849954 AccreditedEYE
AccreditedEYE's picture

Keep pimping that VIX chart.... INTC just raised. People don't give a crap how the numbers go higher, just that they do go higher. If you wanna keep fighting a CB cabal and a corporate elite that financially engineers their bonus, be my guest. I, however, like my money.

Thu, 06/12/2014 - 21:57 | 4851179 BringOnTheAsteroid
BringOnTheAsteroid's picture

When you say "like my money" I do assume you mean gold. Those art prints of dead presidents you have in your wallet or the electonic bits in your Bank of America account, their days are numbered.

Thu, 06/12/2014 - 16:11 | 4849956 Agent P
Agent P's picture

Fo dolla, fo dolla, fo dolla gas yo! 

Thu, 06/12/2014 - 16:12 | 4849957 NOZZLE
NOZZLE's picture

Anyone else notice that existing home sales collapsed in May after a January, February and March that seemed non-stop?

Anyone else notice the plethora of not just Benz's and BMW's on the streets in the last few months, but the top of the line models not the entry level shit?

Anyone else notice the number of used yachts on the market all of a sudden?

Thu, 06/12/2014 - 16:37 | 4850052 NOTaREALmerican
NOTaREALmerican's picture

Sacramento KaLiFoRnIa started having a flood of BlingMobiles about 2 years ago, but lately - you are right - some really high end stuff and even Ferrari's are now not "uncommon".   

Thu, 06/12/2014 - 16:12 | 4849961 Tsar Pointless
Tsar Pointless's picture

Off the lows, though.

Thu, 06/12/2014 - 16:22 | 4849972 SheepDog-One
SheepDog-One's picture

Stawks down 2 days in a row? Wow this really IS a dire emergency!! Send lawyers, guns, and money FAST ObaMao!

Thu, 06/12/2014 - 16:54 | 4849983 Smegley Wanxalot
Smegley Wanxalot's picture

Yellen:  "The good thing is energy and food are excluded from inflation calculations, so there will be no impact on the average person's pocketbook."

Thu, 06/12/2014 - 16:19 | 4849986 valley chick
valley chick's picture

Heck, this casino can't even go down 1% !

Thu, 06/12/2014 - 17:00 | 4850136 you enjoy myself
you enjoy myself's picture

and it'll be up 1% tomorrow, like clockwork. 

Thu, 06/12/2014 - 16:20 | 4849990 magnumpk
magnumpk's picture

I've already seen this movie and it sucked.  Why do they keep showing it?  

Thu, 06/12/2014 - 16:34 | 4850036 NOTaREALmerican
NOTaREALmerican's picture

There's only four movies, the 4 F's of life:  Food,  Fear,  Fighting, and Screwing. 

Thu, 06/12/2014 - 16:26 | 4850007 Dagny Taggart
Dagny Taggart's picture

When do we get to the unintended portion of the program?

Thu, 06/12/2014 - 16:28 | 4850015 buzzsaw99
buzzsaw99's picture

draghi has a purple nirple

Thu, 06/12/2014 - 16:29 | 4850018 Rainman
Rainman's picture

like i'm not already looney about tuesdays...  full moons should finish me off properly.

Thu, 06/12/2014 - 16:34 | 4850038 Flakmeister
Flakmeister's picture

If Iraqi production goes the way of Libya things are going to unwind pretty damn quick...

Time to buy a few puts...

Thu, 06/12/2014 - 16:35 | 4850042 Quant Jockey
Quant Jockey's picture

Actually, a full moon is great for the invading hordes from the north. The US likes to use airpower when the moon is at its dullest phase. So we can expect to see more violence, at least until the end of the month.

Thu, 06/12/2014 - 16:40 | 4850065 NOTaREALmerican
NOTaREALmerican's picture

Re:  invading hordes from the north

Those goddamn socialist canadians!    We should have invaded their asses decades ago.  

Thu, 06/12/2014 - 16:54 | 4850112 Flakmeister
Flakmeister's picture

You must really want to see the White House burn again...

Thu, 06/12/2014 - 16:58 | 4850117 what's that smell
what's that smell's picture

all this time i thought canada was a big empty place where "natural resources" are extracted.

and the "canadians" if they get uppity they will be "liberated" (their shit stolen, their wives and children "collaterally damaged", and the stray supine sole-surviving fugitive "last mohican" put on the reservation).

canadians? i do not believe in canadians.

Thu, 06/12/2014 - 17:47 | 4850334 CCanuck
CCanuck's picture

You guys could'nt beat the cave dwellers in the middle-east, ...and your gonna come take our women and children...looooolooooolloooll

1812.......ring any bells.....any Canucks up for a White-House Pig Roast!



Thu, 06/12/2014 - 16:36 | 4850050 canonball
canonball's picture

Belgium must be preparing for a world cup party...

Thu, 06/12/2014 - 17:05 | 4850155 NoIdea
NoIdea's picture

Do the algos know about full moons?

Thu, 06/12/2014 - 17:40 | 4850297 foxmuldar
foxmuldar's picture

Buy! Buy! Buy! Orange futures report is out today. LOL!

Thu, 06/12/2014 - 18:17 | 4850474 walküre
walküre's picture

2008 redux. Oil spiking during the summer and then KABOOM

Iraq is a sideshow. TPTB need to spike oil to have a legitimate reason in crashing what's left of the economy.

Thu, 06/12/2014 - 19:46 | 4850805 GooseShtepping Moron
GooseShtepping Moron's picture

Well, my most recent market predictions went to shit in a hurry. I thought NIRP would have the hot money flowing out of Europe and into US equities, but that turned out not to be the case. I obviously don't understand completely what's going on, so I guess a lunar chart is as good as anything else at this point.

Thu, 06/12/2014 - 22:54 | 4851336 AdvancingTime
AdvancingTime's picture

So far, the violence hasn’t affected Iraq’s major oil fields, the country’s main source of revenue. Oil output increased 100,000 barrels a day to 3.2 million barrels last month, the most since August. The country pumped more crude as it increased links to wells in its predominately Shiite south. Iraq is the second-biggest producer in OPEC after Saudi Arabia.

Whenever a few hundred armed men can jump aboard vehicles and drive into a city and totally destabilize it you have a problem. ISIS fighters posted videos of themselves burning government vehicles, setting up checkpoints and issuing challenges to the authority of Mr Maliki. If it begins to effect oil production it may well be "checkmate" on an already fragile government. More on the woes facing Iraq in the article below.



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