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Energy Stocks Are Crashing As WTI Plunges Under $85
Just yesterday evening, the exuberance was palpable (in stocks)... today, with WTI collapsing (under $85) to 18-month lows, Energy stocks are being monkey-hammered across the board (S&P Energy sector -4% from yesterday highs)...
As oil prices collapse...
and the curve flattens drastically...
So Energy stocks are in freefall...
But but but the Shale Revolution!!??
Quick grab the cost curve charts...
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Ain't resource wars fun?
the shares crash ... hopes are dashed ... people forget
The Who
This might be the one thing that GETS US Congress into Action.
They are losing money and the Corporations are losing money.
Lobbyist will come out by the thousands to get the price of Gasoline back up.
Ebola will reduce oil demand by 90% in 1-2 years time.
short oil ... long 3M N95 surgical masks
Mission accomplished, crude at $85... Right before the elections... The numpties think this is going to hurt Putin, while he says, so what, the EU still need natgas...
plus, he owns just a few UST's, right ? plus, his hackers could put a huge hurt on the NYSE anytime they want...
so help me out with this...is this a low demand kinda thing with oil dropping like this, or is it criminal downward manipulation of "paper" prices like they're doing with silver and gold? Are they hammering prices as a weapon against Putin?
and its STILL $3 per gallon!
exactly...even higher actually. And diesel is also off the charts. So that brings up another thought...is the government doing this to harm the private oil guys in our midwest who are still paying sky high fuel prices while having to sell their oil for less and less?
Seems like the same thing they're doing against the mining operations by slamming these paper prices down. I can't tell what the reasoning is...have I missed the correct explanation on here somewhere?
All this seems to be doing is helping China buy oil cheaper just like they can now buy silver and gold so cheaply.
It's not that I'm pushing for higher oil prices. I would think if it weren't for the massive Trillions of dollar printing over the years oil would still be well under 50/barrell, and less inflation would make everything cheaper, obviously. And obvioulsy the fundamentals of all of that don't actually matter to the Fed or the government scumbags since they can manipulate any market any direction any time.
But that's why I asked previously...what's really causing this? Is it to try and hurt Russia/Putin? Seems like that's the same illogic as them thinking slamming silver and gold prices would hurt China!
#FAIL
Energy is crashing because China is crashing, and no one knows it yet because all their books are cooked. This is what I've been expecting for a while. Chinese and Taiwanese housing prices have been slowly dripping downwards for almost a year. Same as in the US in 2007.
Well you wouldnt know it from the prices here in rainy'ol UK.
Buy oil they said, production has peaked and demand will only increase they said.
Those assholes and their reasons taking me down yet again.
My long position in /CL is large enough to choke a donkey and I know as soon as I sell more calls against it oil will go straight back to 110.
Wait until ISIS invades Saudi Arabia... It will go back to $140...
Sweet. So that implies no more rush hour traffic jams. This might work out okay.
Ebola will reduce oil demand by 90% in 1-2 years time.
- Then if you are an Oil Executive you might be looking for a soft landing in another industry. Time to look at Banking, Insurance, Hedgefunds... Other Industrial s.
So are all of these charitable oil pumpers going to keep supplying below production cost?
(serious question to those who follow this closely)
pods
"Crashing" - I think of cars.
"Plunging" - I think of female neck lines.
Tyler needs to hone up on his uber sensationalist vocabulary.
Couldn't agree more. Hyperbole = clickbait, nothing more. On ZH if it ain't "crashing" it's "exploding".
Words have meaning guys.
Not so much in the world of Click...
MASSIVE EPIC HUGE GIGANTIC MONSTEROUS IMPLOSION!!
Is that better??
Inconceivable!!
I don't think that means what you think that means
Funny, to me, plunging is an action verb one uses to describe efforts applied to address a plug in one's residential sewer system.
Short answer, pods, is 'Yes', OIL pumpers will, in the short term, continue to produce even though spot price is below fully-loaded finding and developing costs. In the short run, F&D costs are considered sunk. Also, a % of current oil production is likely to have been hedged at or above a cost-covering level. If oil stays below the magic price for 3-6 months, then a company will begin to adjust its production and development program. . . GAS pumpers, on the other hand, will 'shut-in' capacity much more readily.
I don't think so. The reserve status of the petrodollar is being used as a tool to try to punish resource rich Putin. The corporations that are being fired on involve the BRICS. It appears to me the cabal (old guard) has their back against the wall and all guns are being fired. At the moment all commodities are dropping with a last ditch effort to raise the value of the petrodollar.
Check this German journalist out:
https://www.youtube.com/watch?feature=player_embedded&v=yp-Wh77wt1o
Happens every election right around early October until after Thanksgiving. Nothing to see here.
Meh, "just another tricky day..."
Sometimes you need to burn down the forest to catch the thief.
Yes, keep "crashing"!!!
OT: Can someone please tell me why a suspected Ebola carrier in LAX airport can be pulled off a plane and 3 hours later be cleared of having the virus, but a police officer in Dallas wont have results for 48 hours?
--concerned Dallas resident
he was a large Democratic donor ?
I think 48 hours is needed for writing scripts to feed to the govt news stations and thus the general public to consume. Although the 3 hour results (thought it was 2?) IMO was because delaying the flight and what unfolds as they continued to wait for "results" would equal an uncontrolled script and possible panic?
Everything's bigger in Texas!
Even the wait.
Yrad
It's because they are lying. The whole bullshit thing is 100% fake.
Why does this seem to happen right before elections? That and the "declining unemployment" that sparks fake rallies.
Also: Ann Coulter RIPS Republican Party's lame election "strategy" http://tinyurl.com/ozhq7dh
HH, when you ask if Resource Wars ain't fun, you must mean the same 'fun' we're seeing in PM Wars, right?
IOW... The wars between Primary Wealth (Real/Natural assets) vs. Tertiary Wealth (Paper/Fiat assets).
NATO has the latter, plus megaton of fiat Debt, whereas the rest of the world has the former.
Q1: What do you think is gonna happen?
Hint: How many times per second do you think that "Thou shall not covet thy neighbor's goods" will be broken?
the start of the Great Deflation? ALL QE HANDS ON DECK?
US QE finished for now
(liquidity concerns)
Remember all the never see $1 dollar gas again people... well with 3 ebola strains and a few Marburg ones for good measure...looks like the guidestones were right..
Does this mean gas will be cheaper?
Yes.
The USA is now energy independent, after long, last!
I'm heading out to buy a new King Ranch pickup after I type this. No money down, easy payments, and diesel will be close to FREE!
It's not so much independence but the lack of money to buy.....
everday just wait another as it will be cheaper the next
hmm is'nt that some kinf of 'flation oh well
Not to worry, he will have 84 months to pay it back... /sarc
More energy indepenedent?
http://www.reuters.com/article/2014/10/08/canada-crude-exports-idUSL2N0S31GA20141008
Production gains have come from cracking foreign crude. Canada's crude exports to the USA are up 35 percent from the same period a year earlier.
Doubt it. Even though "The dollar is getting so strong!" and "Oil prices are crashing!" The gas pump rape will continue unitl morale improves.
gas prices are/will tank(ing)
http://www.eia.gov/dnav/pet/pet_pri_gnd_a_epmr_pte_dpgal_w.htm
WTI showing 85.50 support
http://bullandbearmash.com/chart/wti-oil-daily-continues-tanking-support...
The we are in the high 70s if this breaks.
Necessarily skyrocket...
how much leverage are behinde those energy stocks? going to cause alot of margin calls
BUT BUT PEAK OIL!!!!!!
Just because oil goes down in price, doesn't mean you wont run out of easily accessible oil.
Im sticking to that, if global warming advocates can get away with saying we have global warming when the planets climate is practically IDEAL/perfect, then i can get away with saying that.
Quote
"Just because oil goes down in price, doesn't mean you wont run out of easily accessible oil."
LOL
Ok genius, then explain to me exactly what is a "price."
1) how can you tell what the price should be when there is no price discovery!!!
2) "prices" are really irrelevant (especially when a currency dies). You need to burn calories in order to actually do anything. Especially to liberate more oils (calories).
Keep your paper promieses, I'll keep those potable calories.
Definition of Price:
Price, New World Order version: A fairytale concept describing a duration of time (milliseconds) required to depress the 'conjure' button in order to induce a consumer into 'purchasing' a good or service. This ultimately results in a contract of indentured servitude where every purchaser is collateralizing their productivity against the object/service they wish to consume/use.
Price, pre-New World Order version (now obsolete): The amount of stored wealth required by a free man/woman to purchase a good or service, no 'indentured servitude' strings attached.
OT…but who gives a fuck.
This is my thank you to all the commenters of present and years past on what was once a truly unique and valued site. I owe a lot of gratitude to many of you for the insights and wisdom that you have shared and passed along. I can easily sit here and rattle off at least 30 of you fuckers with no effort that have been long-time commenters and who have shared vast amounts of information for years, day in and day out, and that have had a true, tangible impact on my personal life. Fonzzannoon being one of the many.
As I have followed this site daily for over four years, I have often wondered if, in fact, many of you are actually bots due to the frequency and quality of your posts. I mean, how the fuck can many of you work a full-time job, raise families, work towards self-sufficiency, or get anything in general done and still post value-added content on nearly each and every story, almost every fucking day. Amazing. Although rarely have I commented, or engaged directly, over the years, I feel like I’ve become to understand who many of you are, and where you come from. As weird as it sounds, in a sense, I feel like I’ve become to know you and view you as an acquaintance, or at least an ‘advisor’ of sorts. To those of you that have put in the time, effort and energy to help awaken, educate and inform, I truly thank you from the bottom of my heart. If anything, realize your efforts don’t go unnoticed and your words, thoughts and expressions do actually have the ability to influence and inspire others. In the end, you are the ones who continue to make ZH what it is and was…Tyler just provided the forum.
New Tyler(s)…I can’t say what originally led everyone to ZH, but I can safely assume what had initially kept many of them around…quality, unrivaled content matched with unparalleled, superior commentary from the those that joined the Fight Club. Over time, as the quality content diminished, the comments section had been able picked up the slack. In fact, so much so, at least for me, I had stopped ready nearly half of your click-bait articles and rather headed straight to the comment section.
Tyler(s), if you care, many people are taking issue with your arbitrary ban hammer and the exponential degradation of article content, which in turn is eroding the quality of the comment forum. If I’m not being clear, ZH won’t be worth a shit without the healthy and vibrant comment section of days past. In time, it will simply be another Infowars. So, in the immortal words of Michael Ruppert, who failed to follow his own instruction, “Grow up or die! Evolve or perish!”
fyi i am not a bot. i do most of my ZHing at work. why? because fuck em thats why lol
yeah slacker here
>>ban hammer
note the recent abscence of the anti zionist posters... odd, when you consider that the central bank ponzi scam is, at its core, a zionist scam.
God dammit francis, you ruined it for everyone
this is why we cant have nice things...
I'm a slacker as well and the guy I work for is rich beyond my wildest dreams so fuck him.
Just like the "Good Ole Days," I pretend to work, and they pretend to pay me.
I jokingly threatened to sue once for refusing to pay me with real money.
Yes, cutting out useless wall-street middlemen is the first important step in wealth preservation.
Lol, yup at work or when I should have been doing work in grad school.
you too? awesome
DITTO
.
Only about ads and clicks.
I think the headlines are designed to fuck with the algos
Who'd want to do that?
Truffle shuffle, what do you want them to report? They report the news. It's not everyday that there is some groundbreaking insider secrets being exposed...as has been done here many times. The articles are still good, they just cant be reproduced on that level every single day. Quit being an f'ing drama queen. If they post an article from someone who's opinion you don't care for, don't fucking read it. Quit crying and move along. Or you can go back to CNN. Incidently Mike Ruppert is how I found this site and i'm infinitely thankful to him for that.
I don't know about you but I for one am a bot.
A FUCKBOT, that is!!!!
Who’s crying here exactly? The gist of my post was the expression of gratitude towards the commenters, particularly those that have earned their stripes, as, IMHO, they are the ones who “make” the site. If you can read, I said that half the time as of late, I don’t read the articles any longer and go straight to the comments section. I’m a big boy and can ascertain my own navigational habits. But thank you!
In terms of reporting the news, if the daily copy and pastes from the likes of Snyder, CHS, Black, Krieger, etc. is true discovery and reporting, then I stand corrected. As you appear to have been here awhile, you see no decline in content and a developing trend in overall cheapness when compared to the ZH of yesteryear?
I am a sperm squirting FUCKBOT!
Ok so ZH content includes more content from the likes of the authors you mentioned. Some of them I read and some I don't. So including links to more opinions contstitutes a decline in content to you? I guess you don't understand that you just don't break a groundbreaking story every day. I still get plenty of the insider type information that I loved when I started reading ZH, I've also learned and know so much more than I used to when it comes to understanding the nature of economies and markets so maybe everything I read today isn't something new like it was when I first discovered this site. Still don't see how it adds up to a decline in content. And if you have something better I would love to know what it is, please share it with us all so we can add it to our daily reading. Thanks
Must...Fuck!!!!
Almost there...UUUGGGGGGGHHHHHHHhhhhhhhhhhh
Ahh
Double tap!
Does not compute! Danger Truffle_Shuffle, Danger!
I am not a bot! I'm hungry, anyone have any 1s and 0s?
Jumpin Jack Flash
Its a gas gas gas
higher fuel prices one of drivers of new (fuel efficient) vehicle sales
coupled with subprime auto lending beginning to blow up?
Pain Train heading down the auto industry tracks
I still see an insane amount of brand new trucks/SUVs on the road here in State U. town.
Gas was $2.85 last night.
I wonder how many are sub prime buyers?
This looks like BULLLSHIT data. As of 12:44pm, the low print on CLX4 (front month WTI) is $85.60. TYLER: What is the chart labeled "WTI Futures" actually showing? It's not an accurate portrayal of WTI futures prices in the real world.
Oh, I see, it's CLZ4 - the DECEMBER contract. Cute trick, Tyler... If the actual front month contract doesn't suit your propaganda goals, just take advantage of backwardation and choose a longer-dated contract that suits your purpose. Clever indeed.
Yup. We are pretty much at bottom here.
no propaganduh here...nope, not at all.
i know... i know..ZH is infallible...keep them down votes coming please.
WTI all the way down to as low as $20 per barrell and up again triggering collateral and margin calls on derivatives,............. just because.
Just because Pentagon wants to revenge on Bank lobby
Just because Saudis want Iran economy destroyed
Optimist. By all means "crash" diesel fuel back to 2004 prices!!!
Costs will go down along with sell price due to dollar drainage.
Survival of Saudis over Iran is more important than anything else
Weimar is going on right now in shadow banking
too bad "shadow assets" don't mean shit.
oil, copper, iron ore, grain in elevators etc
All collateral for shadow banking
Same during Weimar. Grain warehouses were exploding with grain.
Owners were not selling it
Well, we did. Got a great price on soybeans this year.
$20? Wow, that's quite a call.
My contractor buddy ( 100% technically clueless ) made the observation ;
" this cheap gas will get the economy kicking into gear"
I had to bust his bubble. The other way around, chief.
Your buddy is correct and the gas is not cheap at all, unless oil drops to $50 per barrell and it will
Perfect opportunity for scumbag governors to raise the gas tax .33 cents or more.
This is my third time posting it and each time it is more germane to each thread:
Prepare for the ccoordinated international money bomb to end all money bombs. Draghi will print to the tune of $1T as will China, Japan and the US. The main "drivers" of growth are collapsing. Emerging markets are fucking stillborn. It's print or die, fuck or walk in the coming weeks and months. We are poised on the precipice and the central bankers know this. The alternative to not ramping up printing/spending is complete economic collapse and its concomitant socioeconomic meltdown. It's getting pretty fucking sporty out there.
...said my father in 1971...
it is diametrically the oposite
Money printing is leading to economic collapse. There is literally a Weimar going on in the shadow banking.
Weiman is underway right now in shadow banking
Draining dollars will purge too many claims or real assets, thus liberating them into producing output
Where, oh where, will all the dollars go?
They just vanish into nothing.
Poof?
Yes.
Federal Reserve by law is literally a black hole for dollars
When Fed sells bonds, thus receiving dollars, dollars just vanish.
How is it the Fonz's account gets vaporized and yet you're still here babbling the same shit about the MIC fighting with the banks? If they're at war please let someone win soon so the rest of us can get the fuck on with our lives, because all I see is the banks and the military fucking all of us on a daily basis.
Constitution gives you the inalienable right NOT to read what I pontificate about
I've been reading your stuff for a while Ekm and was intrigued by the ideas and propositions you laid out. However, over the years, the theory of diametriacally opposed factions battling for control seems to me nothing more than a concocted myth to give the idea a soap opera backstory. Both groups are screwing us all royally and I just don't feel it appropriate to glamourize the superficial divisions of monetary and military powers. The truth is that the military will never win out, wars have to be financed, nothing gets done without the bankers. Rothschild didn't get rich betting on football games.
You don't get it.
Nobody seems to get it
Financing = Typing up digits on computers.
It is military which creates financing, not vice versa
Nobody needs bank lobby to just type up digits on computers
There isn't one single case in world history that military ever lost against a non-military force.
Rothchilds ruled because Military protected their assets because Rothchilds shared their booty with Military
Yes, nobody needs the banks to create financing for war. But the proof that the banks will always win is that, nit only do they just type in extra ones and zeroes, but they also collect interest on the magically made up currency.
Let me repeat this again:
Nobody gives a flying excrement about bankers, when the shit hits the fan.
They will kill them, literally speaking. Nobody needs them, except for in good times
bank lobby is destroying the USD (by design)
mic is protecting the petrodollar
and yes, we in the middle are getting fucked by both
"bank lobby is destroying the USD (by design)"
Why ?
LOL
Cuz nature abhors a void?
as a side note: physical dollars put off nasty black smoke when burned...with a mix of plastic/toxic fumes. they also hurt when you use them to wipe your ass.
If you pay taxes with physical dollars, IRS just shreds them. IRS is the black hole of physical dollars
Other than that, they have precious value in deflationary periods
I think we're well past economic considerations gentlemen. Of course rampant printing and debasement is the problem a la pushing on a string. Attempting to generate inflation (in the right asset classes or target areas like wages) in a deflationary environments is foolishness at its worst, but the alternative at this point is hitting CTRL ALT DELETE and purging the system in effect washing away the excesses accumulated at the very top of the food chain and you know good and fucking well these sociopaths have no intention of sweeping some crumbs off the table for the proletariat to consume.
No, this is very much a print or die environment where all bullets, contrary to previous proclamations, have been fired. The Feds Doomsday Plan will entail DIRECT intervention in the stock market (openly, not clandestinely as is commonplace today), money actually distributed to the peasants in the form of cash and tax breaks, corporate tax rate reduced to 18% in exchange for full repatriation, etc.
They will pull out all stops otherwise the whole thing goes down in a flaming mess.....
I'll take a fucking bailout right about now!
Hardly
QE/ZIRP is disinflationary
deflationary when asset bubbles burst (we're finally there)
helicopter drops only come from legislatures ... not central banks
Oil price war and gas is still over priced... Fuckers
shit in my hood dropped 10 cents (adjusted for inflation) in one day. My gas tank is holding out on "E" right now and driving on fumes just so I can catch another 5 cent drop by EOB. gotta keep my Ramen Noodle Chart in line ya know...
Today's $SPX chart has waterfall sell-off written all over it. Bear flags galore being thrown out. They're going to try and arrest the fall and it will be sold into. Don't be surprised to see $SPX 1900 near the close.....
Like I said - waterfall. Look at it go. Dip buyers going to get their asses handed to them very soon, if not today....
XLE at 85 down 3%. It was 100 just a couple of months ago. It is starting to get real here.
a sure sign of rising interest rates, the money that keeps commodity prices high on spec has either disappeared or will soon. once the fed loses control of the asset valuation bubble the economy can reset, and people can go back to work. the big half off deflation sale is right around the corner.
1. A 10% correction in all the averages. Small caps 20%.
2. Grandma initiates QE 4, 5 or whatever.
3. Markets start a violent rally since Nirvana has returned.
4. Markets then truly crash as they realize our way of life is imploding. That is when gold, silver, miners take off and do not look back.
Patience all, just be patient and keep that hand on the Tiller.
Miners? With what energy do they "take off"? Are we talking coal-fired steam shovels? Or just hand tools?
Ummm...hey zero retard...how do you get collapsing prices without the massive production you stupid pucks?
Plus you have a huge boom in natural gas production.
And the most corrupt President in US history is now allowing massive exports of crude oil while the folks of Illinois prepare for Operation Freeze to Death Part 2.
Sure the Bankster class that over extended credit and all their hyper inflating Governmet minders (cough, cough Zero Hedge cough cough) are in deep shit...but why should I care about "a string of defaults unlike the world has ever seen"?
I'm not the one extending credit here.
Especially to the equity space.
Sounds pretty scary, I suggest you get right the fuck out of the U.S. as soon as you can. Personally, I look forward to settling this balance sheet as it were.
Eagle Ford will collapse first. Then Permian, then Bakken.
I guess we will find out for sure that drilling oil in those fields really is cost prohibitive at this price level. Beats taking their word for it.
Its cost prohibitive at $100/bbl if we didn't have ZIRP.
WTI < $85 !!!!
one of two things must have happened... either Dennis Gartman went long oil/energy....or they're done playing games with Putin and they're getting ready to ass-F$%&#k him and his Oligarchs... must wait to see what (if anything) they serve back to the West.
US has Frack Boom/Bubble and Ebola.....
how are airlines doing?
What were you saying about Putin?
No. Neptune in Pisces = oil & gas found just about everywhere.
Fed has to raise i-rates if O&G declines to "soak" up those dollars worldwide
That means hotels around well sites will be less full, room rates will go down.
Hookers and blow cheaper?
Peabody (BTU) down another 8% today. For those keeping score, that's an 85% crash in just 3.5 years.
Some of BTU's competitors are down that much in 6 months (ANR, ACI, WLT etc.)
So, how many energy producers will fold and have to close up shop if this trend continues too long? As Gail Tverberg argues (http://ourfiniteworld.com/2014/09/21/low-oil-prices-sign-of-a-debt-bubbl...) this may just signal the collapse of the debt bubble: "I would argue that falling commodity prices are bad news. It likely means that the debt bubble which has been holding up the world economy for a very long time–since World War II, at least–is failing to expand sufficiently. If the debt bubble collapses, we will be in huge difficulty. Many people have the impression that falling oil prices mean that the cost of production is falling, and thus that the feared “peak oil” is far in the distance. This is not the correct interpretation, especially when many types of commodities are decreasing in price at the same time."
http://olduvai.ca
Don't the Saudis, Iranians, and Russians require $90/brl oil just to stave off the revolutions? Time for more near war experiences to get that price back to where it needs to be. After the elections though.
The average cost to extract from the earth and to deliver a barrel of oilf to a refinery is less than $60 for Exxon Mobil. I imagine that is true for all major oil companies. But at $60/barrel, all the shale-focused companies would be losing money. The cost varies greatly for these upstarts.
+ 1 But, at consumption levels not seen since the 1970's according to the EIA......it aint about what it costs......its about what its worth.
I seem to recall a recent ZH article about the Russians looking at $60/bbl price contingencies.
Meh, the algos will save the day and Cramer will be on a pogo stick in a clown suit before you can say "MOAR."
Take that, Russia.
Signed,
He said it awhile ago,
Charles Hughes Smith
As bad as sinking oil prices may be for Russia, UK, Norway, and OPEC, It will be just as bad for the US.
On the good side, gas will drop to less than $3/gal., which will help the most of us; and our small towns won't be muscled into giving up their groundwater and their health for the sake of frackers.
Fracking is nothing new, and it's the only segment of the economy providing real jobs with real far above minimum wages.