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WTI Crude Oil Tumbles Below $100 - 10-Week Lows
It appears global geopolitical risk is fixed... WTI crude futures have tumbled back below $100 this afternoon to their equal lowest since early May. Despite warnings from Russia over higher energy prices, oil is well below MH17 headlines levels...
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and off stage it's all gone Pete Tong in Libya
Nice reference.
What a relief.. here I was thinking there was a little geopolitical risk out there somewhere.
Gold down, oil down.. just as long as the taxes, fees, rent values, food prices and electricity follow suit, everything will just fine.
Right?
If Nigeria decides to actually contact those 30,000 they've identified as being at risk from 1 guy who collapsed at the airport, the email scammers might change their MO and drive up awareness...
just broke 100 .. 30 min before nymex close.. STRONG Dollar pushing on CL .. also CL not giving a flying phuck about Ukraine ..
http://hedgeaccording.ly/2014/07/alan-greenspan-u-s-running-out-of-buffe...
and yet Gas goes UP today here in Michigan from $3.38 to $3.59 go figure...
Keep "tumbling"!!!! Of course "paper oil" is fucking useless. Take it to under $50!!!
(and then good luck getting delivery)
But, but, but, economists tell me that oil is something that the price is set because of demand constraints and not supply constraints!
Oh yeah? Tell it to this guy.
https://www.youtube.com/watch?v=dLCsMRr7hAg&index=3&list=FLSIcLl4SLNDiPv...
Just calculate the equivalent of energy of one bbl on the road by using photovoltaics instead and you will see $60 is quite realistic.
For below $50 we would have to remove the import duties on chinese modules.
Putin would be more concerned with Brent pricing not WTI.
Brent has a similar drop but it is about $3 to $5 higher than WTI
looks like oil is also pricing in the popping of the fed bubble(s). yep, oil is a bubble.
Maybe it's paper oil being sold? Same story as with gold?
200 USD/barrel would make the sheep a little concerned, no?
$130 would make the sheep a little concerned. It would also be more in line with total production costs. Either the price goes up, or the production goes down.
Yup.
My best guess (for what it's worth, lol) is that production is heading down (along with price). Too much demand destruction...people are just getting too poor to support price.
Agreed. Went canoeing on the Current River here in Missouri last week. National Scenic Waterway. This time of the year it is usually crowded. Was afloat for a week. Saw very few people on the river! We kept asking ourselves, "Where is everybody"?
good for the fish
No worries, it will rally back in time to fuck everybody for Labor Day weekend.
Well at least NOW I will be able to AFFORD a big tub of Vaseline so I am at least greased up and ready for Labor Day!
"Strong dollar" day, nothing more...
of course crude is dropping. we are growing at 4%. interest rate hikes are around the corner. clearly the dollar should be appreciating and increasing our fiat purchasing power.
thank u overlords. thank you.
- minions
The powerful growth in the economy has encouraged the oil companies to finally open up those cheap-to-produce fields that they were keeping under wraps. That's what's driving this.
That seems odd. Given the sanctions on Russian Energy. Buring fuel in Libya. Iraqi oil under ISIS, and Syrian oil too. Go figure. But the big trades know what we don't they get their trading information straight from NSA and CIA headquarters.
The price of oil is manipulated, just like PMs. Production costs exceed the price, oil majors have been selling equipment to pay dividends and I guarantee there is a lot of debt floating around. But if oil comes up to what it actually costs oil companies to bring a barrel to market, it will crush the economy.
In the US, the price of oil is managed to some extent with its Strategic Pertroleum Reserves. Based on the current activity of the Reserves, we've released about 5 million barrels into the market in the past 6 months
We have about 700 million barrels in storage.
http://energy.gov/fe/services/petroleum-reserves
El Vaquero, the cost to producing oil is less than $100. The $100 mark was quoted by Saudi Arabia as the price they need to sell oil to cover the costs of production AND to invest in diversifying and developing their local economy away from an oil-based economy to a diversified economy. That's why the price has been manipulted to the $100 mark.
That's ~40 days worth of oil for the US. In the long run, it's insignificant. But oil is traded in paper markets.
As long as the u.s. gets oil for $60/barrel from canada, who cares what the wti price is?
The trading powers that be, run the book down to pick up all the longs stop loss orders at $100-knock them out of the game-they short to get long.
Then, tomorrow or Friday oil moves up.
Makes total sense after three tabs of LSD.
But so does a green sky, with maroon clouds.
Brent is however ,the only price that matters anywhere but the US.
so which way?is this economy expansion according to stock market?
is it economy contraction according to WTI ? or none of this but heating season is coming and they manipulate oil down for political gains?
the price of oil should be measured against the gold. how long it takes to sell treasuries to belgium? that is how long these markets are here for.
You'd be comparing two items that both have their price manipulated to each other. But we gotta keep that status quo going, ya know?
the oil exchanged for gold is what I am writting about.
It doesn't matter. They're both manipulated against the dollar. True value discovery for *either* of them is not possible right now, and that will be reflected in the price of oil when expressed in ounces of gold.
My guess is after russians have sold their stock of us paper, the boomerang will fly back. usd is the target, and gotta respect the mon that came through the chaos im Russia in 90s. I THINK they may be a match for the mob that rules west.
Tylers, portuguese regulator just banned short selling of BES and JMT.
Me thinks some Neocons are pushing hard (no rigging of course) to bring oil down - best way to punish Putin, Iran and friends - where it really hurts.
The high price of oil would hurt US fracking companies worse because they are the high cost producers.
Now Russia will be pissed.
No shit. I'm pretty sure oil price manipulation had a lot to do with the Soviet Union falling apart.
If it says at this price Saudi Arabia will be pissed. Saudi royalty needs to buy off the populations with free housing, government jobs for everyone. But they cannot continue to do so if the price falls below $100. This leaves KSA vulnurable to internal unrest, not to mention ISIS standing on the broder to the north.
Libia Oil is on Fire. Syria, Iraq in turmoil, Iran is ready to invade so yep Oil has to go down. Blame Canada
Yep, I see this as a pushdown of price to hurt Russia.
Isn't it obvious to everyone that the sanctions against Russia and their hit on the global economy, is just a BIG LIE of the West to hide the fact that the world-wide recovery has FAILED and hide the fact that the demand and consumption of crude oil has DECLINED?
ding ding ding!!! we have a winner! +1 it was on this site about a year ago that we learned from the EIA that oil consumption had dipped to levels not seen since the late 70's. Nobody cared then. Doubt they will care about it now. But, you're right - all a big distraction from the real fundamental problem of declining demand. Price is merely a reflection of currency debasement. Nothing more.
Except declining demand isn't the problem, it's the purpose and intent. That's my belief.
I have always felt the the Crash of 2008 was intentional to create a recession which would slow down the consumption of crude oil, which was in much shorter supply than we had been told.
If the economy were going full tilt and one day the major producers announced that the cupboard was bare, well, imagine a 5th "Mad Max" movie.
People would be fighting for Winston Smith's job.
Really, this is the best of all possible exits.
yeah except im not really fond of poking the russian bear. sooner or later she wakes up and bitch slaps a big chunk out of everybody's shit eating grin.
Amen, brother.
It's a 'flight of fancy'. Pareto. A 'flight of fancy.'
And if you're willing to go this far with it, why not go all the way?
The threat of nuclear annihilation is both certain and immediate, but a perpetual war -- as described by Orwell -- is a much better guarantor that there will be no nuclear obliteration than any peace treaty agreed to by the full United Nations.
It keeps the warring leaders both in power and alive.
So it's not peace that prevents the nuclear Holocaust, but the agreement between the leaders of Oceania, Eastasia and Eurasia to fight a neverending war against each other and enslave their respective populations with fear.
How many decades or score of years, will be added to the existence of Mankind by this ploy?, we will never know.
And remember it is either that or this:
"Let us go then, you and I,. When the mushroom cloud spreads out against the sky"
It's a Hobson's choice, isn't it?
Bid. I'd like to think that logic and common sense will prevail - you know- the right thing. But I feel you are right. I think when I reach this conclusion it makes me feel really old and really tired. And it happens more often than I care to admit.
I thought we all gave up on common sense and logic when Bill Clinton snuffed out his cigar on -- in -- Monia L.
I was in my 50's then and full of hope for the country. Then he dragged the country through his impeachment. Even Nixon didn't do that, but it was a different country in 1974.
He could have resigned before the impeachment and he could have resigned a few months before the end of his term to guarantee Gore's election. But he thought more of himself than the party and the country.
And Monica L was the watershed event that led us to where we are now.
No Bush, no Iraq. No huge increases in the National Debt.
No NEOCONS in power at NSA, CIA, FBI. Maybe no 911.
Now Clinton's wife wants to be president and usher her slimeball husband back in the WH.
If I'm responsible for your feelings, I am sorry.
Oil price drops long term, production follows. Notwithstanding the prognostications of EKM.
This looks like it is aimed directly at Putin , with Brent now down to $106, with Libya about to explode, (everyone has practically evacuated all their staff the last two weeks, could be very risky, they are banking on 500k a day from Libya, as far as I can tell this has not started to actually leave the country,although itis being produced...http://www.firstenercastfinancial.com/news/story/58827-oil-market-losing...
Oil Market Losing Faith in Libya’s Ability to Ramp Crudereally getting dicked with now...
the thing about "consumable" commodities is that after manipulating the price higher by creating false short-term scarcity, eventually the crap piles up so high there's no where to put it but dump it on the open market. Of course, the main players have already left the building by then.
The more war rhetorics the lower oil. That's just funny.
Tootski!? https://www.youtube.com/watch?v=UTHlXb0PXh4
Broke people have no where to go.
Watch and see I guess. If it enters free fall, that may mean we're in a stealth recession despite the 4% fiat GDP print.