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Oil Plunges As Saudis Dismiss Price War "No Basis In Reality"
WTI Crude oil prices tumbled to a $75 handle this morning as Saudi oil minister al-Naimi dismissed claims of a price-war as having "no basis in reality" noting that "Saudi oil policy has remained constant for the past few decades and it has not change today," suggesting expectations of a supply cut at the looming OPEC meetings are overdone. This comment comes after Qatar said it "may" cut output by 500k barrels/day.
As Bloomberg reports,
Saudi Arabia’s oil minister dismissed talk of a price war as having “no basis in reality” in his first public comments since crude plunged into a bear market last month.
“Saudi oil policy has remained constant for the past few decades and it has not changed today,” Ali al-Naimi said at a conference in Acapulco, Mexico, yesterday. “We want stable oil markets and steady prices, because this is good for producers, consumers and investors.”
“Talk of a price war is a sign of misunderstanding -- deliberate or otherwise -- and has no basis in reality,” al-Naimi said at a natural gas forum. “Saudi Aramco prices oil according to sound marketing procedures -- no more, no less.”
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http://news.yahoo.com/obama-seeks-review-syria-strategy-sees-assad-remov...
And there it is. You can call this to a T. Jesus will these fucks ever stop with their incessant need for death?
Looking at the cover of my RATM "Evil Empire" CD is more fitting by the day.
pods
Gas at $2.43 at the local Shell Station, but what's really weird is a local bank offering O % Master Cards, apparently to anyone who can fog a mirror.
Crazy days.
It's called deflation.
I can't wait for a bottle of Don Julio 1942 to hit $50!!
I am so excited to have deflation. Seriously. Cannot wait. Cheaper gas? Cheaper food (Thanks Vlad). *I AM SO EXCITE!!!!!*
Or Fortaleza for $25!
http://news.yahoo.com/obama-seeks-review-syria-strategy-sees-assad-remov...
That Yahoo story is total bullshit. Since when does the Executive Branch of any nation declare OPENLY IN THE PRESS that removing another head of state may need to be a matter of "policy"...?
These Adminstration fuck-tards in Washington are just trying to appease the war mongerers over at the Pentagon, who are getting antsy about the fact that they have all these guns, and no one to point them at. Assad looks like a nice, tasty soup bone for the dogs of war to gnaw on.
If telegraphing "regime change" via the press was a legitimate strategy for accomplishing the underlying goal, then the US Prez would be standing at his podium declaring that "removal of Putin may be necessary" because Vladimir is a much bigger headache for Obama than Assad in Syria ever was.
But, since Obama is already Putin's "flexible" bitch, I guess we'll never hear another word about that.
Assad- The greatest threat to world peace? - give me a fucking break.
Let's just invade Malaysia instead - at least there we could say we were "liberating" the poor serfs from their oppressive Sharia overlords... and while we were at it, maybe we could send in the FAA to teach them how to keep their damned airplanes from falling out of the sky...
Because, if Malaysia is any indication, then you know for damned sure that Sharia Law is incompatible with keeping planes in the air...
Rational economic behavior given the environment THEY created would be to take them up on that offer, max it out buying gold/silver/BTC, and never log in to the acocunt again or open the mail they send to you.
I'm not defending this ethically. This is rational economic behavior to simply swap out the free money for real assets and toss the debt into the inevitable implosion of funny money.
The word 'rational' should not be applied to the markets since the people running the circus are themselves not even slightly rational....
Another conspiracy theory coming true. I honestly didn't this "mission" would creep until early 2015
Re; after determining it may not be possible to defeat Islamic State militants without removing Syrian President Bashar al-Assad, CNN reported.
This makes so much sense, as the stated goal of ISIS is the removal of al-Assad.
We have reached the point of no matter what we do it will be wrong, except, of course, getting out of the middle east and I don't see that happening.....
Mr. Pink, not to digress from the main topic too much, but if the US is going to play a trial lawyer's "Procedure Game" in trying to remove Assad -- after they got him to remove his Chemical WMDs -- then Russia should call "Bullshit", and threaten to send replacement units from their own arsenal.
That'll make the Ziocons think twice. Especially if a bunch of that crap floated down the Jordan River and contaminated the H2O supply. Playing dirty pool works 2 ways, and all's fair in love & war.
What is the breakeven price of all that new US oil?
Looks like we might be losing $10 per barrel produced. Seems sustainable.
pods
No problem. Just print moar.
LOL. Exactly. The world is getting tired of trading their real goods, commodities, and services for America's bullshit paper. What's that trade gap looking like again?
Tick tock motherfuckers.
give them a break, they're just trying to match their paper to their policies
$74 below which thousands of lay offs in US.
Doubt oil price will be allowed to go below $74 for this very reason
Doubt oil price will be allowed to go below $74 for this very reason
Really? You think the BLS can't seasonally-adjust away a few thousand jobs and continue to proclaim "recovery?"
With US FED QE on hold, the TBTF banks cannot keep the "put" under everything - they have to make choices. And so do you think they are going to prop up oil prices over Treasuries and the S&P 500? Methinks not.
Let's see shall we. Fed signalled yesterday that there is stockmarket turbulence ahead they haven't done that in 6 years. I think I am right and you are wrong, but with oil hovering just above 74 we'll find out soon enough.
I think you are a 9-year old and I am not. Speculation is a fool's errand, Jethro. You might read up on Taleb:
It is not the frequency with which we are right that counts, but the cumulative effect of our losses.
"Speculation is a fool's errand, Jethro." -- Indeed, and it's what has in essence caused all the bullshit to begin with. However the calories required to provide a decent standard of living for 7+ billion people are what they are, so I still see plenty of real demand for oil on the planet. Nothing changes that, aside from a serious and "unforeseen" decrease in that population of course...
I'd also argue that arguing over "prices" in a centrally-planned "market" is also fucking stupid.
TBTF have a cool 2.5 trillion in reserves to buy all the government bonds your lousy govt wants to offer up.
QE continues the method has slightly changed.
Well, they could always drone the Saudi supply and claim it was an Iranian replica*.
The combo of actual supply plus potential supply/war issue would drive the price back up, any time the Squid needed to front-run an Oil Futures opportunity.
* http://rt.com/news/205267-iran-replica-us-drone/
http://finance.yahoo.com/blogs/talking-numbers/the-surprising-relationship-between-oil-and-stocks-220546670.html
Clearly CNBC has this nailed, Oil and Stocks move together.....
Tilman Fertitta, billionaire Texas mega-restaurateur, oil prices will cause massive real estate crash....
http://www.bloomberg.com/video/tilman-fertitta-real-estate-crash-like-19...
USA need war bad but who will side with USA , France?
ROFL. Maybe repatriate Lady Liberty to rally "les troupes".
I love when they say "no basis in reality"
I think thou doth petrol too much
as other brighter people have pointed out, along with gold tricks, China is laughing all the way to the bank. When the fuck will the US learn that the world (and its commodities) no longer revolve around it.
Oh, never.
...and in other news...hazmat trucks arrive at WH. Did the prez just get back?
Prez spit out his nicotine gum in the wastebasket.
pods
Damascus will be destroyed very soon :(
it's the least they could do in the name of Jesus.
so true
One of the oldest cities in the world.
Damascus isn't falling any time soon. But there is no way, when the map is re-drawn that Syria will look like it did before the revolution.
You are too late with that statement.
I hope not. But if it is and the Russians do nothing to prevent it, then Putin will be outed as a total pussy.
Because... If Damascus falls and there is regime change, then Russia will lose its port. Which would be a horrific military and political loss.
damn... that means gold is going to get slammed...
I'm fucking knee deep in calls right now...
ISIS produces oil for free, (because it is stolen), but on the plus side, it is about to reintroduce gold and silver coins into general circulation....
Why don't you just buy physical and call it a day?
We the Republic of America are going to take down K Street thieves. You have destroyed our reputation worldwide. Time to change the guard at K street palace. White House is next.
Toward the Within
That the price of crude is plunging due to crashing demand instead of over supply is a scary thought indeed.
The world economy runs on calories burned.
Crashing energy use = crashing production of goods = crash.
Laws of physics are a Bitch.
"Decreasing demand" you say? Last time I checked the population was 7+ billion and growing. The better the standard of living, the more calories that are required. So, unless the population is decreasing there is still plenty of demand.
Yes, the laws of Nature and physics are indeed a bitch.
Your premise should be correct and Thats why its so alarming. The population is growing but actual usage of energy is dropping.
I know that you know its not due to Electric go-carts or energy star A/C units.
As far as quality of life is concerned, having .gov feed someone so they can spend their personel $$ on i-crap is not real and is, as you have said many times, unsustainable.
Have a look at living standards around the globe. There's your answer. Pretty obvious to me. The real problem, as I see it, is the fact that many living in poverty have governments holding a lot of U.S. paper.
Agree, the rise in the worldwide standard of living has occured concurrently with the explosion in CB debt.
Can't help but wonder how those many will take to going back to a staple diet of mud and grass patties.
Will find a chart of acual energy demand and post it later in day.
As usual, LOP's math is rational. We have definitely hit peak debt as well (all predicted) but what makes you think 250 million of US can control the growing demand of soon to be 9 billion of "them." They can build alliances (and fighter planes) just like us, and they're doing it. They're doing it better than us because well, for one reason, not as many people hate or distrust them as they do us (all in an empire day's work).
These price games are just that. They could perhaps be a TEMPORARY lull as the economic hit of less energy stalls the economic growth (all predicted) but the last time I checked, we're way behind the "alternative energy" game especially with portable fuels and that is indeed what "fuels" this world economy. When World War II ended, how many countries (and their households) used oil? It's a much different picture now. And, unlike cheap and easy oil, it's not going away.
Far and away the likeliest explanation is that it's yet another part of the economic war on Russia.
Far and away the likeliest explanation is that it's yet another part of the economic war on Russia.
WTI oil showed weakness back in Sep
http://bullandbearmash.com/chart/wti-oil-monthly-moves-91-support-foreca...
And with the move up of the USD back in Sep, the writing was on the wall
When their lips are moving they are lying "no more, no less".
It is our tolerance of this phenomenon that is remarkable.
Man! how I wish Putin would set the price of crude at a $40-per-baril equivalent payable in ruble and yuan only.
Undercut everybody and make up the drop in price in volume.
The fiat empire is one thing, its two-bit whores like the Saudis another.
You mean 30$ payable in gold or silver. Then we're talking.
Why didn't crude crash 2 1/2 years ago when I blacktopped my access road? FCK!!!
Two questions we'll never hear from mainstream media...
Question: Interesting how oil prices are plunging now that QE is over...coincidence?
Follow Up Question: If lower oil prices are good for the economy, what was the purpose of QE 1,2,3, etc?
Oil prices crashed during the housing market debacle. The Federal Reserve is playing TARP 2. Think derivatives expansion to kick the can a few more months.
Same fucked up mess, different time. Shoot the bastards. Problem solved.
Oil shock of 2007-2008
Maybe I can afford to fill my heating oil tank this winter.
Jim Willie claims the Saudis are in fact behind the oil plunge/suppression as part of their revenge to crush US shale gas.
They will all pump as much as they can (OPEC, Russia and shale plays). Thay can't afford not to, whatever the price.
I can remember my parents complaining about the news of production cuts in oil causing the oil price to rise.
Guess the new normal is inverted.