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WTI Crude Tumbles Under $78 As OPEC Slashes Growth & Demand Expectations
While it has been obvious to many that the drop in oil prices is a weak demand issue (amid a desperate over-supply pump for revenues in a decling growth world), talking-heads have remain unashamedly bullish of growthiness and shrugged at commodities dumping at the fastest pace since Lehman. However, it appears OPEC just burst that little bubble of hope by slashing demand forecasts. Crude prices tumbled on the admission.
OPEC's World Oil Outlook slashes GDP growth expectations from last year
With OECD demand tumbling
And the result...
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Didn't an oil/commodities crash precede the last global stock market crash?
repeat after me........recovery
Don't worry McCONnell has it under control
Because unemployed people that aren't counted in the unemployment figures can't afford gas?
Who needs gas when Honey Boo Boo is on the TeeVee and Uncle Sugar sends you a check every 2 weeks.
FSA, FSA, FSA!!!!
This is the oil-soaked version of QE taper. The rise in oil prices under Obama was used to recapitalize the banks. Now the hope is that lower oil and gasoline prices will re-ignite the real economy. Are the banks re-capitalized? Will the real economy reignite?
People don't need to drive to a job they don't have. I'm not spending my gasoline savings. Let's see what XMAS looks like.
Looks like buy everything on the 23rd & 24th after 16 price cuts.
Oil is plunging because … of the weather.
they cancelled honey booo shit, reckon they'll cancel the checks some day?
Yes, its de'javu all over again.
You can say that again.
Yes but this time it's different. MUAHAHAHHAHA LOL
not quite, this time we have the same criminals leveraged 1000x greater than they were last time.
I wonder how the "bailouts" will be recieved this time around...
tick tock motherfuckers.
The NSA is duplicating my posts...
Yes, but we also had mark to maket accounting, and we all know what happend to that.
Here uncle Ben, this turd sandwich should be trading at a premium. I'll let you buy it for par.
Yep, all that re-re-re-rehypothecated collateral in commodities is now worth ZILCH!
Can you say "MASSIVE EPIC EQUITY IMPLOSION DEAD AHEAD!!?"
There ya go.. I knew you could.
call me when it's $60
Why, yes. Yes it did. Also sent us into recession.
Which is about to morph into the second phase.
Moar recession-er.
This does not feel like a second recession phase. It feels a lot, at least to me, like something very very big will break this time. I don't know what it is and I don't know where it will come from, but some times I just get very scared by all this. And I am one of the people who have been expecting and preparing another crash.
I think Abe broke something he didnt intend to break. Someone got out of step in this dance and now is falling into the other dancers.
With all the 'saveing face' in the east we might not know who blew up and why, only the effect. Something unexpected happend on the 22 oct.
Repeat after me (100X): "Neptune in Pisces".....etc.
Oil & gas gets found nearly everywhere, by nearly everybody.
You seem a bit mysterious, if not outright confused.
What are you peddling? :)
Let it all out...
True enough. But is it positive cash flow (even at $80/barrel)? For new finds, the answer over time is more likely to be no.
ahhh, but "Neptune in Pisces" might also hint at
imagining, hoping, day-dreaming about maybe finding "oil nearly everywhere", with maybe "nobody" willing or able to "pay" for that oil.
ubiquitous yet un-desired, un-necessary as lives adapt to shifting tides.
what might a "new saviour" imagined look like? who will dream up the new followers, who are waiting, begging to be inspired/led?
No, the very high oil price was the prick that broke stocks, then when they tanked they took most things, uncluding oil, down with them.
This time could be the reverse!
Is it good for stawks? That's all that actually matters.
the answer is, no, it isn't... plan accordingly
Darn it all to hell. Cheaper oil and less currency I have to pay at the pump. I hate it when that happens. Old Yelller better get to printing and take care of that problem stat.
All fixed. Please bring back the 6 MPG SUV stat.
I wanna dance like no one's watching.
I want a Bugatti Veyron SUV. Believe me, I NEED a 1000+HP SUV to shuttle the kids from home, school and soccer practice.
Sadly, they don't make one. Yet. I believe demand would be extremely high for such a vehicle.
Not to worry , you HC premiums will increse threefold any saving on gas.
They are just stealing from a different pocket.
Get to work serf.
Come on Tylers! It was at $76 two days ago.
DavidC
All part of their plan
So finally its about demand now?
Yeah, and funny thing about that...there's nothing they can DO about it. Nothing in their little bag 'o tricks for this problem.
For demand to be exercised, they have to either raise wages significantly, or lower current prices to match existing wages. Neither of which they can bring themselves to do, period.
I suppose they could, in desperation, mail out checks again, but a one-time buying spree won't fix anything. The only way to keep their game going is if THEY do the bulk of the buying, of the stuff they're trying to sell for 'profits'...Which is just stupid enough to make me think they'll try it before giving up.
So this is good right? Less exspensive gas/fuel for the serfs?
Could even be to help unwind the paper hedge (short) positions of the Oil traders, which they have been accumalating over the years to massage their numbers.
Big commodity houses have, or are, shutting down Gasoline and Biofuels trading desks and going through noticable downsizing.
And they are owned by the Tribe, so if tribe cannot make money, what chance would the mere mortals have.
As far as my personal purchasing power index goes, oil is still above 4/gal. How 'bout you? Feelin' richer, are ye?
This is deflationary shit. That means my cash flow drops faster than prices.
TRUE.
Personal anecdotal evidence:
My employer asked me to take a 40% pay cut on the new contract. Everyone on the contract received similar requests.
Prices up, Pay down, Unemployment up, Gulags and Secret Police up = Gallows and pitchforks.
I don't believe it. A non-hockey-stick (i.e. truthful) growth forecast from...... OPEC?
The "oil guys" telling it like it is while the "debt guys" keep putting j-curve charts on everything.
Wow. Just wow.
almighty us$, http://finviz.com/futures_charts.ashx?t=DX&p=m5
BUT BUT BUT BUT PEAK OIL!!!!!!!
The peaking of oil fields has everything to do with SUPPLY not DEMAND. You might demand something but if it becomes to expensive or difficult to extract or make what you want due to supply constraints then eventually the ride comes to a complete stop. BUT BUT BUT BUT.......!!!!!!
So, OPEC , OFFICIALLY" is reducing output from 30 million barrels per day to 28.2 million barrels per day
I think at least 5 billion barrels are in onshore/offshore storage world wide, that is a minimum of 160 days of OPEC output.
OPEC wants control and wants oil from storage locked up as rehypotheticated collateral to be dumped.
Just my view
5 billion is good; that should satisfy world demand for less than two months.
planet shmanet janet. [/Frank-N-Furter]
In addition to manipulation by the government-financial complex other forces have converged to further distort and disconnect Wall Street from the American economy. Why American equities are rising is very important as we worked through a pre-election and post-election rally. We are experiencing a double down and let it ride mentality that has been ratcheted higher by media hype.
Most analysts agree that money from countries with weakening currencies is flowing out of the troubled areas and the U.S. is receiving most of the benefit. The Japanese as well as many Chinese and Europeans know with so much money floating around and few safe harbors America is becoming the most comfortable option for temporary investing their money. More on why this should be viewed as a sign of instability rather than a reason to celebrate in the article below.
http://brucewilds.blogspot.com/2014/11/why-american-equities-are-rising.html
Oil price dive will affect shale plays, and unwind shale ponzi investment.
Will bond contagion find "patient zero" in the fracking patch?
When this junk blows up, it will affect bond prices negatively across a broad swath.
How much depth does this corner of the bond market have? How long can people hold on to "trust me"'s before they mob the exits?
Exit? Who is actually left to exit? All the 401k sheep are locked in. Outside of that I see trading bots.
"All the 401k sheep are locked in. "
Tell me about it....
McCormick; that works for this Administration and will work for the next one. They all Kowtow to if not outright suck the Saudi ass. Whoever thought these reptiles in office were ever American?
Do most robots use more oil than humans? I think not but that Tin Man got squeaky a lot
There's a 2018?
after you die from ebola you no longer consume any oil
Yes, you do; they have to burn your body. Oil. :>
The rise in the price of oil post 1998 has everything to do with the development of the present euro supply chain which has both European and global inpacts in the use of oil ( much more Bunker fuel was needed to supply europe post 1998)
The euro entrepot region was structured to its present absurd degree post 1990.
It began to use ever increasing amounts of previous soviet military inputs.
Now Russia is burning more oil internally again.
Russian oil demand has reached a new all time high according to the IEA and is now 400KBD above it 5 year average.
(Kersonse needed for those Bears)
European rail transport of goods has been in constant decline since the euro year ( I am talking the 1970s)
Irish rail freight is typical of this pattern.
In 1978 ( the year before euro entry) Irish rail Commodities Conveyed by Rail (000 Tonnes) peaked.
Y1978 : 3,789
Y2012 : 567
http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/saveselections.asp
After 1980 ~ the internal production / consumption economy (the real economy) began to implode.
It has never recovered.
Quick! somebody!
Blow up some more pipelines.
Must... Push... price...
Higher.
Go ahead Global Elite...Soros...Obama.... Keep poking Putin like this and you will have your WW3. And it will not turn out like you have imagined in your psycotic mind.
Maybe they're actually looking for that war? I note they've started attacking the Donetsk region in Ukraine again.
You know, there is one foolproof way to end this bullshit quickly (or as quickly as possible...) All the so-called 99% have to do is hunker down for a year and make no unnecessary purchases, take out no loans.
The system is set up in a way that it will immediately turn and cannibalize itself. Without new money and debt coming in, all the old debt explodes.
Come to think of it, maybe we are seeing something like that. The consumer isn't able to spend anymore even if he WANTS to, and it doesn't seem like he does.