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WTI Tumbles To 29-Month Lows After Saudi Price Cut
After initially jerking higher after Saudi Arabia released its new 'lower-prices-for-the-US' strategy, it appears the market began to realize that in fact - as we warned - Saudi Arabia may be willing to accept prices "lower for longer." WTI futures are trading below $78.50 - the lowest since June 2012 (and its dragging Trannies lower today)...
As Bloomberg reports, confirming our note over the weekend,
Saudi Arabia, the world’s biggest oil exporter, is telling the market it won’t cut output to lift crude back to $100 a barrel and that prices must fall further before it does so, according to consultant FACTS Global Energy.
Swelling supplies from non-OPEC producers drove Brent crude into a bear market on Oct. 8 amid waning demand from China, the world’s second-largest importer. The Organization of Petroleum Exporting Countries meets Nov. 27 to consider changing its production target in the face of the highest U.S. crude output in almost 30 years.
“Production of shale oil in the U.S. will not be hit as hard as the Saudis think” by the price decline, FGE Chairman Fereidun Fesharaki said at a conference today in Doha, Qatar. Producers in the U.S. “can withstand a lot of pressure” by reining in their operating costs before they curb investment in new wells and production, he said.
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I will never complain about cheaper diesel. Sustainability? who cares?!? fill'er up!!!
(hey look, all the TBTF banks were short oil...)
This is so Bullish that SPX could break 3,000 by the end of December
"and its dragging Trannies lower today"
I get really confused when a tranny is in drag?
See, you forgot about ebola, obama care and all your other gripes. Cheaper oil/gas, everybody happy. Tomorrow is the election.
Someone said trannys.
How UN-stimulating !
Let's do the timewarp again...going back in WTI time again...as prices come dowowown...
Its a fracking thrust that drives Brent insane ! (or is that the other way around ?)
http://134.223.116.144:15871/cgi-bin/blockpage.cgi?ws-session=1325984589
Corn price got wack a moled down to $3.50 after the massive harvest.
How do the banksters like their DEFLATION?
Hot or cold?
When Fed drains dollars or Saudis hoarding dollars (same effect) then all asset prices drop at different rates, but they drop
dolla looking "clean shirt" today, again, hence wack a mole comods. lol'g fucking idiots. who gonna drop their drawers next - drag queen of eu land? ole yellers the worn out rag tag phd'd
queen of econ?
That;s a normal price for corn; it has nothing to do with deflation.
It was $7.00 not that long ago.
Grow a lot of corn in Hawaii, do you?
The point is food chain deflation, going forward. Grains have looong price cycles.
prices go up and down; you want to give me a lecture on the subject? It has nothing to do with deflatioin. It's an extremely sutpid comment.
I have a degree in Ag Econ from Illinois and two farms in the family since the depression. I cut my teeth on markets trading grain futures.
What are your credentials, Nancy Boy?
Then you should be able to recognize a reasonable, or normal price for corn; unless you're just butt hurt about your free money program for growing gasolene.
If you knew anything about corn, you would know that $3.50 is below current production costs, well below.
Ours is lying in the field still not cut.
Says to me "corn is worth zero." Actually less than zero since it cost money to put it there.
I have made money tradding corn futures; but I didn't cut any teeth; sounds painful.
It's way too early in the day to be that drunk.
Read this again, if you sober up.
Severe price drops will be detrimental to leveraged farmers. That's why the Depression wiped out so many farmers. They couldn't afford to borrow against collapsing prices. Their mortgages and leases became unserviceable and the banks would shut down the loan facilities to put seeds for the next crop in the ground.
If this deflationary cycle has legs, farmers will sink into the debt abyss.
At least we're getting a little consideration for fighting their war for them this time.
<puts on flame retardant underwear>
These prices will never fully materialize at the pump (you chumps)...
The Wahahabi's will keep the black herioin flowing until the fat fracking queen sings..."Oh sweet toxic Child of myhyhyeeennn"
I just hope these royal queens of the desert get their own on chop chop square, by the very fanatics they support.
Good riddence black crude, and the fanatic you rode in on!
$2.89 at the pump today. Was $3.65 this past summer.
My Mad Max car is loving the cheaper price on the juice. The precious juice.
"I am gravely disappointed..."
hey jit for cheap cost to get to the voting both-lol. fill up on the way back double win...
I dunno, regular in San Antonio was 2.71 yesterday.
Lots of shale oil around these parts and jobs depending on it.
$3.98 in Hawaii on the Big Island, just broke $4/ gall. Paradise tax. A complete scam.
$3.39 in Queens NY.
Fuck You Pay Me Tax.
$2.61 out our way today Southwest Virginia
Diesel under $3.00 now. My only regret was filling one of the 10,000 gallon tanks already...
balls!
Isn't it interesting how the prices ARE dropping at the pump, just prior to the implementation of a new gas tax?! Look over here... not over there...
Just bought two carloads of WTI on the Nymex @78.32$/ for April '15 delivery. Looks like a double bottom. if not I'll be taking a stop loss in a day or two. If I get away with it, I'll just hold on to it and await further developments; because I don't know anything about the future; but somebody might get tired of this price war.
Somebody being SA because I don't think it was initiated from Texas or ND and it doesn't affect the Marcellus, how about that?
Putin just summoned his sub fleet admiral. We gonna try dem cruise missiles on SA.
this is a fu putin move all day long along with letting isis do its thing. its all good for the usa.
Saudi to America.... no fracking. You are hurting us.
russia does not sell oil to the us and sells it to europe and asia. both saudi and the us sell oil to everywhere but russia. This is very interesting of saudi's move, which seems to aim at the us oil industry, and not at russia.
Is now the time I should take out a loan on a new Camaro ZL1?
I don't want to miss the boat.
For a few bucks more get the Z
Not that junk...at least buy a Shelby or Challenger
Fuck that. I just picked up the poor man's Ferrari. A 1991 second Generation mint Turbo MR2 for $5,700. By far the best Automoblie ever made by Toyota. Runs forever, minimal maintenance, spectacular gas mileage & rarely seen on the streets.
excellent drifter-nice choice. own 3 toys-corolla,avalon and 4runner...
Picked it up with 89,000 original miles. Check out:
http://www.mr2.com/vba_cmps.php
A poor mans Ferrari? Hahahahahahahahahahahahahahahahahaha...You'd have been better off with an S2000. Much better handling car. Oh, and I hope you're under 6' tall.
hands down cayene s
Fuel economy is way too high.
Are you a member of the Green Party?
giving me some credit for alerting you of that article would be great
I posted one too,
I think we're all reading the same ticker;)
WTI Oil was showing tells for a while about a move into the 70s
http://bullandbearmash.com/chart/wti-oil-daily-ready-collapse-70s-week/
Support at 70 on monthly after we clear 75
Time to invade that shithole in the desert.
Kick their asses and make them raise their prices.
Dicks.
We´ll bring them a free market from 20,000 feet ;-)
Amazing; now we have people whining about lower oil prices.
There are two sides to every trade.
And above you claim to have played grain futures without understanding that?
If you do not understand that there are two sides to every trade, and, due to some genetic malformity where you did not cut any teeth, I'd say that you have some issues.
There is a video of some 5 and 6 year olds on todays ZH Article Section who explain that simple fact. Perhaps they can teach something like that to you.
Amazing; now we have people whining about lower oil prices.
no need, ISIS will do that
ISIS is the bargain basement of oil.
Do they have the co-ordinates for Vichy DC?
Saudi riyal market calms after capital outflow jolt
Jolt? Or message?
They do not give a flying excrement
love to see criminals fight over diminshing returns...
love to see criminals fight over diminshing returns...
yes. Just don't let them send your children to war over it.
tad of disco chit chat (fz) to do the stack out, from baken field(son sent back text today)...
deeper pockets will drill thru for now(pardon the pun).
Must be because the cost of oil production has dropped 20% in the last three months /s.
lol, hurry up we got more money to loose...
Never been a better time for those coksuckers in the USSA Senate to raise the gas tax by 66% with little or no notice....18cent to 30cent/gal.
"Swelling supplies from non-OPEC producers drove Brent crude into a bear market on Oct. 8 amid waning demand from China, the world’s second-largest importer."
i believe this over some grand "strategy"
lack of demand calling the shots
keep in mind there is only so much storage worldwide, not like you can park a car...
Saudi paying for the Egypt Russia weapons deal.
http://www.upi.com/Business_News/Security-Industry/2014/02/18/Russias-de...
Egypt’s el-Sisi avoids Turkish airspace with huge U-turnhttp://www.hurriyetdailynews.com/egypts-el-sisi-avoids-turkish-airspace-...
IMF followed up its frontal on GCC budgets with another Saudi warning last week. EIA has been on the offensive for years.
2012: Saudi Arabia rejects IMF's 'doomsday scenario' for Kingdom's economy http://www.thenational.ae/news/world/middle-east/saudi-arabia-rejects-imfs-doomsday-2014: IMF warns GCC countries of $175 billion hole created by falling oil prices
http://www.thenational.ae/business/economy/imf-warns-gcc-countries-of-17...
Old is the new new.
Was the Aramco hack the tell? Circa 2012:
"Saudi Arabia warned ministries and government entities and companies against an Israeli attempt to infiltrate their computer systems, a report published by a Saudi business daily said. The warning urged them to avoid dealing with foreign companies, especially German and American companies with strong ties with Israel."
http://english.alarabiya.net/articles/2012/10/12/243227.html
Saudi Arabia is now surrounded by US bases on all sides.
Did the same party that leaked the Russian intercepts via that fake sub in Norway leak the idiotic story about Bandar threatening Sochi via Chechnya?
http://www.businessinsider.com/saudis-russia-sochi-olympics-terrorism-sy...
Oman where the US is hosting its back channel Iran negotiation has been the long standing holdout against any GCC monetary union. Coincidence surely.
http://www.wired.co.uk/news/archive/2014-06/03/middle-east-gchq-base-oman
fuck saudi arabia
Punishing Russia for not playing ball...?
The black swan will be covered in oil when it arrives.
Any nation with the wherewithall should be buying this cheap Saudi crude and storing it. Even countries like Russia with their own, because the price is getting closer to the cost of getting it out of the ground anyway...why NOT buy it from Saudi and keep your own in the ground for now? It's not going anywhere.
Let the Saudis drain their reserves trying to play with the price, why drain your own playing back?
By the time they catch on, you could have amassed a nice little SOR for little more than you'd have spent drilling your own, drained considerable financial resources from the Saudis and other oil-exporters in the form of those low prices, and forced them to draw down their own supplies while yours remains untouched.
Winning!
Can someone please explain how lower oil is dragging the trannies down lower?
No. I can't. I believe it's the usual nonsense from the journalists. prices move and then they decide what they like as a story. It doesn't matter what the story is, anyway.
Lots of oil moving on trains because Obola hates pipelines,
but you're right. That's a knee jerk reaction, and will probably reverse.
Ridiculous amount of derivatives in the market now on god knows what theory.
The craziness may continue.
Its over, oil is finished.
Frack-up Boom-a-rang !
Someone is laughing and getting rich over in Russia where ther cost of production is much lower.
Frackn' Oil squeeze to the bone.
No more QE to pump commodities. What you think is gonna happen to stawks?
No more EZ QE to get to the Frackn' Oil.
Now South Dakota is having a embola-ism, busting a gut, and spilling their "free" bank credits all over the wells.
Sell CL NOW - headed straight to 77.28.
just wondering .. how much leverage out there is hinged to a certain oil price target?
what about the contracts bought on margin?
this is a collateral collapse of apocalyptic proportions
the bulls are fucked
gimme summa dat.
I live in the Permian Basin. Ground zero for all of the above. Most people out here, that I have heard, are saying they could with stand a $60/ barrel WTI price, and would not consider the local economy to be in "bust" mode until prices fell below there.
To be sure, it actually depends on how each company budgets their CapEx. Some companies budget based on $60 oil. Some companies budget based on $85 oil.
So, obviously, a bust scenario is more of a slow moving cascade than an all-at-once thing.... unless prices were to crash by over $20USD in one day. That would definitely be a bad thing for us out here in WTX
USA: Saudis, we need you to lower oil prices again like you did in the late 80's and early 90's to put a squeeze on the Rooskies.
Saudi: Sure, but you need to bomb ISIS to take the heat off.
USA: Done.
IMF: Good boys.
If I were Saudi Arabia and I had decided, for foreign policy or other reasons, to lower oil prices, what, if anything, would prevent me from going into the futures market and quietly, through Swiss accounts, implementing various hedging strategies such that any revenue loss from oil sales would be made up by hedging gains?