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WTI Crude Tumbles Under $97 - Fresh 6-Month Lows
While bonds and stocks shrug off the volatility in FX markets, it appears the crude oil complex is suffering. Despite Putin's discussion of "countermeasures", crude oil prices have tumbled back under $97 to fresh 6-month lows. Brent Crude is notably not selling off (yet) as the spread pushed back above $8.
It appears the USD plunge and oil drop are related...
Brent-WTI back over $8...
Charts: Bloomberg
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Good for the peeps who bought all those cars they can not afford. So all is well.
But that's why oil is dropping in the first place
Long repo companies
http://www.youtube.com/watch?v=DLGrXGEMOSo
It also means the major oil company stocks will plummet and crash the S&P
Can't wait for oil to be $10 per barrel again. Escalade here I come.
Wait, will they still keep pumping all that hard to get oil for WAAAAAY less than cost?
pods
Yeah but I bet Obongo starts a real war with Putin now jack oil up to $200/bbl to save his sorry useless political ass!
June 20, 1986 - remember it well - not pretty - even the law firms in Tulsa once the wave of Bk's were over being processed thru the court - they went bankrupt as well !
Those frackin in the Bakken are now freakin in the Bakken.
Oh silly... they all bought electric cars that don't need gasoline. You just plug 'em in at city hall for free! See, there's no cost and no pollution!
Everything's solved!
Whoopie!
Showing them rag-heads one fill-up at a time
LOL, I stand corrected.
Get too many electric cars and sure as hell they will start charging for it. No electricity is free, not even solar.
Sure sign that the recession is back on in full force.
But, but.... 4%, man. What about 4%?
Hi Kudlow. Glad to see you back here in Fight Club. ;)
They must leave them parked in their driveways
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103600001&f=M
http://advisorperspectives.com/dshort/charts/indicators/miles-driven.html?miles-driven-CNP16OV-adjusted.gif
I've been sitting on a 3/4 full tank of gas in both my paid off 10 year old vehicles for two months now. My bad. No place I need to drive to anymore. No workie = no gasie required. Now they just need to make gasoline expire faster to speed up sales.
Please, let it drop to $50.
(and then good fucking luck taking delivery)
It will go as low as $20 and bounce back up
There's too much oil stored around the world
The so called "market" is just a video game
very possible. it dropped to $32 in 2008. and would have gone lower if Fed didnt print.
how quickly people forget.
How do you figure it will go lower than last time in the face of all the printing they've done since? Did they un-print a whole bunch some time when I wasn't looking? I call $60.
cnbc says that move in the USD was "probably a fat finger"....
#cnbcbunchafuckingmorons
Just STFU fonz you Goldman POS!
I am sorry you don't like me. I'd make fun of you but you have had such a tough road getting to this point in your life. I just can't help be inspired.
https://www.youtube.com/watch?v=s18WiitofZQ
"Fat Finger". That's weightist. (I just looked it up- it's a real word, apparently)
I would prefer if CNBC would use the phrase "plus-sized finger" from now on.
Fat finger?
Yep, fat finger in the sphincter of the USD.
That blip was just the first knuckle. There is more to come.
pods
Thanks, pods. That post makes me feel icky.
Because the economy is so strong. Because Obama.
There's no way we make it to the end of his second term without another crash. No way. And, quite frankly, I don't think Janet's got the balls to tackle a crisis like Ben the Defiler and Hank the Crank did.
Yellen is a 200 year old gremlin. It has balls the size of coconuts that scrape the floor when it walks.
Blind date much ?
Janet's just running the playbook Bernanke left on her desk before he exited in January. Obama has obviously completely checked out and now lives at an endless stream of fund-raisers and golf courses. Congress exists only as Kabuki Theatre now.
Nobody's minding the store. If there was ever a time to wreak havoc, this would be it. It would get WAY in front of them before they woke up and started taking action.
Actually Yellin reminds me of the Breakstone's cottage cheese guy, he went grey and shaved his mustache. NOT THICK ENOUGH!
--------------------------------------
NoDebt wrote:
I agree, but am becoming impatient nevertheless. Indeed, as of 2009, I thought that the crash would take place a few years ago (e.g., 2012), or, at least, that oil's price (WTI) would have breached $120/barrel by now. Gawd, was I wrong! WTI's price probably will not breach $120 for several years, at the earliest.
-- Paul D. Bain
PaulBain@PObox.com
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You didn't ever think the bullshit is only infesting the gold market, right?
Dollar and oil collapse? Don't see that everyday.
See they pushed back the Model X delivery to 2nd qtr next year.
Uh oh :O
oil being down = part of sanctions 3.0
Somebody gets it.
Right, a shot across the bow, and a shot in the own foot both at the same time. Look at how Europe's sanctions are backfiring already. Just sayin'.
This isn't a 6 month low, looks close to a 3 month.
the real money is made on the volatility...
Spot on.
I see what you did there.
the real money is made on the volatility...
Real money is not made...it's mined.
Just a desperate attempt to put the hurt on Putin before the heating season arrives and he turns the gas off... just sayin
crude at 6 mo lows, dollar at 10 mo highs
im going out to fill my tank, later
Just don't fill yer tank with crude.
ha, point taken, i down arrowed myself
A couple thoughts on the action in oil which are of interest/concern:
On the fracking and US energy independence front, if the US truly does become energy independent (a big if), the need for the Petrodollar really comes into question as the primary supplier of oil to the US, the middle east/Saudi Arabia, will look to other markets namely China, India, and other emerging markets for sales. The Petrodollar is already coming under pressure but this trend could ultimately lead to a quicker demise. Not so much if, but when the world finally moves off the Petrodollar, the impact of unwanted dollars attempting to find a new home (rather than leaving them parked in reserves needed to support trade) should be quite a event indeed.
As for the price of WTI, if it continues to decrease, the economic viability of fracking will come under further stress. Already, I believe the average cost of a fracked well is roughly $10 million. Further, production rates after year one tend to fall significantly compared to more traditional/conventional wells (20 to 30% compared to 5 to 10% respectively). On top of this, once the true/real impact of the environmental issues are properly accounted for after the "politics" associated with the industry give way to real data (i.e., large fracking company actually have to start to account for and set aside reserves for environmental clean-up, litigation, etc.), you have the making of an economic storm. Throw in the final piece to the puzzle in that the fracking companies that rely on large amounts of debt to finance the wells/production and all of a sudden, the darling industry of the past 5+ years, that could do no wrong, will quickly face severe economic distress.
One only needs to look back at the history of oil production in the US and boom in the Oil Belt in the early 1980's which ended up in a major bust in the late 1980's. I worked in Denver around this industry from 1985 through 1989 and watched an incredible ride up (with oil reaching $35 to $40 a barrel) end in an implosion when oil crashed to less than $15 a barrel. Many a companies and investments vanished like a fart in the wind during this period. While I wouldn't expect this type of violent correction in the current environment, if the price continues to fall then the impact will be far reaching, ranging from a positive of lower gas prices to a negative associated with financial stress in the oil production industry.
The lesson learned is simple. Be careful what you wish for (i.e., energy independence) as what is good for the geese isn't always good for the gander (especially when the gander has alot of money at stake).
stronger USD will push oil much lower over the next few weeks
http://bullandbearmash.com/chart/wti-oil-daily-bounces-support-retraces-...
oil is not going down without a fight, but the other energies have already been driven lower
Rubbish.
and your link sucks too.
Oil moves up. Oil moves down. Oil is the original phony-ass controlled "market". Unless you can attend a meeting of the "controllers", you have no idea.
Now in the long run, the oil runs out. The sun will go out, too. In either case I'll be long dead and so will you.
fracking now at break even
The real sanction on Russia!
Deflation bitchez.
The plunge in WTI seems almost completely due to the fire at CVR's Kansas refinery, which has resulted in a significanltly reduced refining capacity in the USA and a most likely temporary backup in domestic oil supplies. The selloff, now about about 10 days old, started immediately after the initial reports of this fire and has continued. Initial press release by CVR Refining state that the refinery will be completely offline for about a month.
http://www.reuters.com/article/2014/07/29/us-refinery-operations-cvr-cof...