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Oil Prices Collapse To New Cycle Lows, Canada Heavy Tumbles Under $50
The crude carnage continued overnight with oil prices across the entire complex crashing through support to new cycle lows. Despite recent strategic reservce demand in China, the world's oil glut continues as global growth expectations plunge leaving WTI trading as low as $64.10, Brent $66.77 (narrowing the Brent-WTI spread to $2.68 from $3.23 on Friday), and most stunning of all, Canada Heavy as low as $49.24. Speculators and money managers appear to be BTFD as they increased net long positions last week (amid the price slump) but comments from Kuwait Petroleum's CEO and Iran officials suggest 'lower for longer' on prices will be the norm. As Morgan Stanley notes, "with OPEC on the sidelines, oil prices face their greatest threat since 2009 and appear on track for an extremely volatile 2015"
WTI has retraced the entire dead-cat-bounce from last Monday...
Not pretty...
and not unequivocally good... Venezuelan bonds and Russian Ruble are hurting (as are Nigeria and Meixan currencies this morning)
As Morgan Stanley notes (more later),
Pricing will be path dependent, creating a wide risk-reward skew. With OPEC on the sidelines, oil prices face their greatest threat since 2009, but we expect a volatile 2015 rather than a one-way trade.
Without intervention, physical markets and prices will face serious pressure, with 2Q15 likely marking the peak period of dislocation.
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It is still safe to buy a 'basket' of stocks in the name of prosperity, long $ES, #BTFD 4EVER.
BLAME CANADA!
BLAME CANADA!
I knew it!
Nice dead kitty sketch!
Must be Tyler Picasso's art work.
Blame the USSA for trying to force regime change in Russia by forcing down oil prices. If they are willing to screw their own shale industry, why would they care if they destroy the economy of their least important pet poodle, aka Canada?
latina, thank you, and you know why..avatars I miss on the zh of old come to mind.
Aapl 5% off all time high.......panic first
If .gov disapproved of lower oil prices, they would be filling their "oil reserve" with cheap oil and stabilizing the market.
Are they filling the reserve?
They need to prepare for a war with Russia, can't have the fiat ponzi scheme go belly up while Putin's buying up all the gold.
Cue the Shill Side analysts to explain to us how these Canadian companies make money at $40 a barrel.
/Ignore that all are burning negative FCF at oil 40% higher
I dunno. The recent (brilliant) article posted here at ZH a few days ago illustrating how the gold market was getting shorted in order to fund long Nikkei trades makes me entertain the possibility that oil is getting shorted to fund similar types of shenanigans. It's not like the Oil futures markets haven't been fucked with before, majorly.
I'm with you on that line of thought.
Yep. And I must say, Putin, though I actually support his efforts to create a multipolar world, truly underestimated the psychopaths' willingness to do EVERYTHING in their power to bring Russia down.
Hell, those people would shoot their own children if it ensure preservation of their domination.
Interestingly, while oil prices are crashing, Exxon and Chevron are barely impacted (stock prices that is), airfares are not going down, etc.
To think that for years I actually believed in this "free markets" crap...
Jim Willie is saying that this is a result of the Dollar strength and that the US is losing its control because of the strong dollar which is effecting the oil price. I am sure they are spinning it which ever makes them look best. Jim's prediction is that we are in the end game for the dollar. He see's the Dollar rising and then it just goes POOF, and that would be fine with me.
I don't know who this JW is, but how is his statement 'original'?
In the multi=arena blame game circus where we all get to put a bunch of names on the drawing board.....
I will agree that the unwinding of the crude numbers seems as suspect as the over wrought winding up was. The fly in the ointment might be a big gamble by the super rich/powerful to put Putin and his maniacs back in the box that was removed by Gorby. I am talking about the Rothchild type of super rich, who will profit from Russia, deal with Russia, only when it serves their long term logistics. If they feel threatened by the newly minted Stalin (Putin) then they can do all kinds of magic smash and grabs in the commodities market. They can make Russia howl in several ways. This might finally get through to Putin that the days of Stalinist oligarchy we take whatever country we want by force....days are over. Maybe. Or, maybe we have no clue at all? Put another name on the board and throw some darts.
exactly. bastards burned down the White House in 1812, or something similar. Remember The White House burning!
Those BASTAADS!
Did they ever pay us back for it?
That's what we need now is a war with Canada to boost the economy!
And might as well atatck Mexico too for wrecking the Alamo!
And then let's go take Cuba !
And Martha's Vineyard too damnit!
They all hate us anyhow..
https://www.youtube.com/watch?v=4QbUSjnhv6M
What a difference a few centuries makes. We'd pay THEM to do it today!
Damn that's excellent thinking!
But the way things are going with Russia, I bet Vlad would do it gratis!
Well.. At first but then we'd all have to take Russian language classes..
I'm getting a head(banger) start here just in case:
https://www.youtube.com/watch?v=QJEUhJeGooQ
Da comrade!
Fargin bastages
The eternally hapless Toronto Maple Leafs will win a Stanley Cup before you nutbars go to war with the Canadians.
Well they burned Atlanta after jubal shot the place up.so I guess it on the bucket list
The Brits burned down your precious White House.
Canada wasn't even a country yet in 1812.
The British staged where? They recruited troops from where? Everyone just went back to England? Bullshit.
So you are claiming that everyone in Canada has no ancestor that did not torch the USA to and from DC?
Take responsibility and cut the bullshit.
People who became Canadians invaded and torched the USA.
Not to mention all of the border skimishes between split towns along the border for decades.
Oh yeah, Canadians are so peaceful.../sarc
The Brits burned down the White House with the assistance of Canadian militia troops. At the time, the Great White North was known as Upper Canada and Lower Canada (i.e. Ontario and Quebec).
We apologise for:
1. Burning down the White House
2. Sending Justin Beiber and Celine Dion down to you
3. Taking the Gold medal in hockey in Utah with Dick Cheney (AKA Lord Vader) watching the game.
Peace and Love! :-)
Sure, blame us. Last time I checked we only suppy %40 or your oil for you. But that was a long 2 or 3 months ago. I work in the Bakken area, but $80 a barrel is what is needed to make oilaands possible, so tell me how many more oil companies will produce at a -35% profit? Maybe this isn't the lowest, but I recommend taking money out of a bloated stock market and put it into oil right now. Only if you believe in 'buy low, sell high' anyway. Same goes for silver and gold. If wall street is manipulating this, they just confirmed the fact that they are truly braindead. But I do love the south park 'blame canada'.
If anyone has questions about the patch I actually made a blog for that purpose at oilfieldoperations.com. I like to post on it in my spare time on nightshifts. I know it sounds like a 'plug' but that site has only cost me money ($200/yr), for the sole purpose of sharing my oilpatch experience (20+yrs). First question I'll answer that pisses me off, It's called frac'ing. There's no K. Fuc.
I'd wait for a few consolidations and bankruptcies before I touch any of the oil companies. Either that or if Russia cries uncle.
Nat gas now $3.67. That's got to have knock on effect to at least the marginal fracked gas plays.
it's not just marginal, Nodak gas goes to Canada to liquify the tar for shipping.
One must ask him self ,what is the end game of this BS ????
Full-spectrum dominance, worldwide nanny fascism . A finger wagging in your face forever.
Looks like the cat was suicided.
Time to run out and get the biggest gas guzzling SUV that money can buy, because thanks to the wealth affect from markets that only go up and gas prices that only go down I can afford to. Thank you president Obama. You are a glrorius bastard.
So WTF happened to peak oil? Oh sorry The Squid went short then
LOL, since when does the price of a commodity have the slightest thing to do with its existence (or lack thereof) in the physical world??
That's true, but on the other hand if "Peak Oil" was an immanent global disaster, you'd expect different behavior on a number of fronts. These guys do not seem to project any sense of urgency.
Actually it's peak short #CL
CANADA says "Come and get it! -Its winter here......
You can cross the border at Buffalo ....once you've dug out the snow drifts....
Feb light crude at 64.50, looks like it going to take out previous low.
zig zag just completed with next Implusive leg starting.
So based on what I've read the tar sand projects are now underwater (negative) Cashflow., and with winter just starting there's a falling driving demand.
I'm not to sure how strong the balance sheets are of these tar sand companies, but the debt must be hanging on by a thread.
My question to ZH'ers is this must have a negative on the markets.
Lower oil means families will pay off a little more debt, money supply must drop. Oil imports to the U.S. must rise (cheaper Middle East oil), so balance of payments are going to look very sick.
FED going to have start printing again!!!!
Lower low last few minutes
My wife will be layed off. Yeah, all fun and games.
Yo guys, anyone help me remember, there was this guy who was predicting a major crash in 2015? Forgot his name.
Seems right on track no?
*comic-book guy " Worst Christmas ever*
His name was FONZANOON . Ekm1did it .
derp
I looled when googling Fonzanoon
The IEA reporting record internal demand in russia ( all time post cold ear highs)
Continue to think Russia is engaging in a for dist experiment.
A Lada granta economy.
Stocking up for war?
Sharks in the water
https://www.youtube.com/watch?v=ZvCI-gNK_y4
Cage goes in the water, you go in the water. Shark's in the water. Our shark.
B.B. I left you a reply on the banker question earlier.
http://www.zerohedge.com/news/2014-12-07/wall-street-moves-put-taxpayers...
Thanks for the reply, BT.
Sounds like your friend was a human casualty in the war against small banks. The war that started back in 1913 but really picked up steam with the new regulations after 2008.
I'm still paying $2.70 a gallon at the cheap place, here in NE.
$2.45 here in TX...
2.29 yesterday here in the heart of DFW.
$2.25 in Dallas area. Yeehaw
Mommy mommy I want an RV with a wormhole. Shush child you've been on earth too long.
I love $2.00 a gal. gas.
hey Bruce! how's that keystone looking now?
After so many switched to gas heat.