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The Middle East Is "Fixed" - WTI Crude Drops Below $100 For First Time Since May

Tyler Durden's picture




 

We can hear the headlines now... thin of the tax cuts, think of the improved discretionary spending, see Iraq was a storm in a teacup... WTI Crude's drop back below $100 provdes so much great news for the world that many perhaps are missing that the world and his brother were long black gold into this and this squeeze appears anything but reflective of the rising tensions... (or is it due to tumbling demand?) Russia won't be happy - time to escalate.

 

 

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Tue, 07/15/2014 - 08:54 | 4958579 Capitalist
Capitalist's picture

Great news for the consumer.

Tue, 07/15/2014 - 09:19 | 4958651 Da Yooper
Da Yooper's picture
The Middle East Is "Fixed"

 

BAaaaa hahahahahahahhahahahaha

 

thanks I needed that laugh

 

just how did they rigg or manipulate the "FIX"

 

LMAO

Tue, 07/15/2014 - 09:44 | 4958712 Lewshine
Lewshine's picture

The price of oil is going down because there's a ton of longs in the market, betting on the dozen or so geopolitical hotspots around the world - AND THE GOLDMAN/FED RULERS OF THE UNIVERSE ALGOS SAY THANK YOU VERY MUCH FOR YOUR DONATIONS!!

Tue, 07/15/2014 - 12:03 | 4959353 KnuckleDragger-X
KnuckleDragger-X's picture

The proper way to say it is "the fix is in'.

Tue, 07/15/2014 - 09:21 | 4958660 Citxmech
Citxmech's picture

Yet for some reason, gas is more expensive this week, than last week - at least here in Seattle.

You really have to search on the outskirts for anything under $4.00/gal.

Tue, 07/15/2014 - 09:47 | 4958723 post turtle saver
post turtle saver's picture

paid $3.67 for 93 premium at my usual Texaco haunt this week... down from $3.74 last week...

because Texas

Tue, 07/15/2014 - 08:55 | 4958581 fonzannoon
fonzannoon's picture

Maybe it's not fixed. Maybe it just never really impacted the flow of crude to begin with and a few people used the headlines as an excuse to bend over the consumer (again).

Tue, 07/15/2014 - 09:51 | 4958733 post turtle saver
post turtle saver's picture

yep, near as I can tell the real ME production problem that matters (Saudi Arabia) has been fixed for some time... the rest is drama...

Tue, 07/15/2014 - 09:54 | 4958742 NotApplicable
NotApplicable's picture

Now, why you gotta go ruin a perfectly good narrative? That's impacting someone's job, you know.

Tue, 07/15/2014 - 08:56 | 4958586 LawsofPhysics
LawsofPhysics's picture

The trend in energy is most definitely your friend.  The only "dip" worth buying in my humble opinion.

Tue, 07/15/2014 - 08:58 | 4958590 Dr. Engali
Dr. Engali's picture

Don't fret. The Labor Day run up will commence in August.

Tue, 07/15/2014 - 08:58 | 4958591 ...out of space
...out of space's picture

98,6 looks like a target

Tue, 07/15/2014 - 08:59 | 4958593 Tjeff1
Tjeff1's picture

Indicates lower demand.  Negative 3% GDP and world GDP turning down soon.  And Iraq boiling pot has not happened -YET. 

Tue, 07/15/2014 - 09:20 | 4958657 LawsofPhysics
LawsofPhysics's picture

With 7+ billion (and growing) all competing for a better quality of life and the calories that make that possible, I still see plenty of demand for oil.

Tue, 07/15/2014 - 10:23 | 4958860 DOT
DOT's picture

 

 

 

 

H = U + PV     (more pushing and shoving with a strong upward trend)

Tue, 07/15/2014 - 12:39 | 4959477 AnAnonymous
AnAnonymous's picture

Especially with three billions people who actually do not consume oil.

But, hey, anything goes to comfort 'americans' in their fantasy...

Tue, 07/15/2014 - 09:00 | 4958597 Max Damage
Max Damage's picture

Obummer and the FED think they can print and control forever. The fuckwits are destroying their economy and destroying the US's position in the world. typical socialist tyrants. We can print and buy whatever we want... fuckin retards

Tue, 07/15/2014 - 09:05 | 4958611 TrulyStupid
TrulyStupid's picture

Obama (or any other president) has no say in the actions of the Fed... he is their servant, not the other way around.

Tue, 07/15/2014 - 09:28 | 4958677 Eyeroller
Eyeroller's picture

So Obama had nothing to do with filling the ranks of the Fed with Keynesians?

Tue, 07/15/2014 - 09:03 | 4958604 TrulyStupid
TrulyStupid's picture

There is an election November... the only way incumbents will lose is if there is a gas price hike going on... otherwise the sheeple will vote their incumbent in. Look for oil prices to return to the up trend after November.

Tue, 07/15/2014 - 09:35 | 4958690 TabakLover
TabakLover's picture

The election cycles have hurt the US immeasurably....... politcal positioning never seems to end.  I say change the constiution........elect the President to one 6 year term.  Make Congress 4 year terms, Make the Senate 8.  This will allow some "non-election" space for things to get done.

Tue, 07/15/2014 - 09:03 | 4958605 Agent P
Agent P's picture

I'm not even sure West Texas is fixed.

Tue, 07/15/2014 - 09:05 | 4958610 jubber
jubber's picture

May be worth getting some cautionary calls????

Libya: Most Planes At Tripoli Airport Reportedly Destroyed

The price of oil paused Tuesday after tumbling last week as a deteriorating security situation in Libya raised questions over the restoration of exports following an agreement between the government and a regional militia.

Prices fell sharply last week as worries about supply disruptions from Iraq eased and on the prospect of more supplies from Libya. Weaker than expected economic data for the first half of the year prompted the International Energy Agency and other experts to trim their forecasts for short and medium term demand.

But fighting between rival militias over Tripoli International Airport and battles in the eastern city of Benghazi are casting uncertainty over plans to reopen two oil terminals that would boost the country's crude exports by about 500,000 barrels a day. Libya currently produces around 350,000 barrels of oil a day.


Read more at http://www.stockhouse.com/news/newswire/2014/07/15/oil-stops-slide-as-de...

Tue, 07/15/2014 - 10:10 | 4958805 CrashisOptimistic
CrashisOptimistic's picture

This is the only relevant factor.  Oil was over 100 before Ukraine or ISIS / Iraq ever hit the headlines.

But the MSM hasn't caught up yet with the reality that the only oil that can ship from those terminals is whatever is stored in the onsite tanks.

The fields themselves are still rebel held and they are not flowing.

Tue, 07/15/2014 - 09:07 | 4958622 orangegeek
orangegeek's picture

the biggest MSM joke is the keystone xl pipeline

 

it's been working since 2010

 

http://en.wikipedia.org/wiki/Keystone_Pipeline

 

phase "3b" is about to complete

 

phase 4 shortens the distance from Alberta to Kushing, but as of this moment, oil is flowing through a keystone pipeline from Alberta to Kushing

 

Barry is a fraud, but the bigger fraud is the MSM that doesn't report this - Barry is too precious to be made to look like a fucking fool  - again.

Tue, 07/15/2014 - 09:58 | 4958751 Cthonic
Cthonic's picture

The original leg fed the Wood River refinery in Illinois.  The Cushing, OK to Nederland, TX leg (that feeds on to refineries in Texas City and Port Arthur) was completed earlier this year.  The part that was and still is contested is the phase 4 leg which would have conveniently passed near the Bakken and might perhaps have disrupted some particular connected interest's crude-by-rail operations...

Tue, 07/15/2014 - 09:15 | 4958638 Save_America1st
Save_America1st's picture

something has finally kicked in a little bit in my area.  The cheapest station in my area of Tampa, FL was 3.48 last Friday.  On Monday morning yesterday at the same station it had dropped to 3.37.  Not like that's anything to celebrate when it should be well under 2 bucks.  But it was surprising to see a drop that big over a 2 day period.  But I still see stations within a 3 mile radius of this one who are selling for 3.53, so fuck those guys. 

Tue, 07/15/2014 - 09:21 | 4958661 LawsofPhysics
LawsofPhysics's picture

It an election season.  Duh.

Tue, 07/15/2014 - 09:15 | 4958639 Rootin' for Putin
Rootin' for Putin's picture

Oil is down because the Ukraine problem has been fixed (accidentally).

"No new EU members for the next 5 years"

That not only means Scotland but Ukraine too.

http://www.dailyrecord.co.uk/news/politics/alex-salmonds-dream-staying-e...

Tue, 07/15/2014 - 09:18 | 4958649 GFORCE
GFORCE's picture

Scotland should take the yes vote as a backdoor EU referendum to escape the clutches of the EU before it collapses again and needs bail-outs/in...

 

On the oil situation, the COT report showed long speculators at extreme levels recently and this always marks a near term top. Market dynamics rather than manipulation I'm afraid.

Tue, 07/15/2014 - 09:23 | 4958666 Ghordius
Ghordius's picture

Scotland's majority is pro-EU. it's the English majority that wants to exit the EU

meanwhile, bail-ins are supposed to be bad for depositors, not taxpayers

Tue, 07/15/2014 - 09:27 | 4958675 Frostfan1
Frostfan1's picture

It could be less energy usage in the US.  The summer hasn't been that hot.  There's actually a cold snap in parts of the country. 

Also, if no supply is affected by the fighting, then so what if Gaza and Israel shoot rockets at each other. 

Tue, 07/15/2014 - 09:44 | 4958709 Hulk
Hulk's picture

They are using smaller barrels now....

Tue, 07/15/2014 - 09:54 | 4958726 Space Animatoltipap
Space Animatoltipap's picture

The price of oil will drop to 0 USD because oil will be priced in another currency within a few years. But perhaps US earthquake shale oil will remain priced in USD.

Tue, 07/15/2014 - 09:59 | 4958765 post turtle saver
post turtle saver's picture

meth is a hell of a drug, ain't it

Tue, 07/15/2014 - 10:11 | 4958823 Space Animatoltipap
Space Animatoltipap's picture

Only when the government supplies it.

Tue, 07/15/2014 - 10:06 | 4958793 Hohum
Hohum's picture

It's just great that the costs of oil exploration can increase 10%+ per year and the price cannot exceed a certain plateau.  What a wonderful world!  Oh, yeah!

Tue, 07/15/2014 - 10:13 | 4958829 KansasCrude
KansasCrude's picture

Its being rigged down to try and boost consumer psyche and spending money elsewhere thats why prices are being manipulated down (see gold and silver).  Oil inventories have been down last few weeks and only positive has been propane inventories.  At these prices lots of frackers and horizonal drillers are marginalized and profits well won't be much if any.  Same story the gubmint pretty much thinks outside of a few multinational big boys the rest of natural resource harvesting companies are not supposed to make any $$$.  Especially if you are Canadian.

As far as the genius that thinks gas S/B below $2.  LOL Clueless.

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