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WTI Crude Crashes Into The $50s
UPDATE: WTI just hit a $58 handle...
Zee overnight stabilitee (and brief dead-cat-bounce this morning) has turned into a renewed bout of selling pressure and for the first time since July 2009, WTI has broken below the $60 level. Canada Heavy is trading $42.10 (down almst $4 today!), its lowest since April 2009. Energy credit spreads are wider once again, now at +952bps.
Canada Heavy has crashed...
And WTI breaks below $60 (and bounces) after multiple stop run attempts...
Now we have a problem...
Who could have seen that coming?
As Deutsche Bank warned last month, a drop in the oil price to $60 a barrel "is likely to push the whole HY energy sector into distress."
Charts: Bloomberg
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Hang on tight, from 9/2014 to 9/2015 is a jubilee year and they always end in woar...
For most of the US's history, woar has sprung from the inside, this time may be a bit different with Putin flexing his missle muscles.
Kim Jong Unhinged is also a wild card.
Then the Chinese have subs that fire "meteors" off the coast of Kalifornia, to send signals that they won't be F'd with.
DaddyO
House Resolution 758.
The danger is not from China, N Korea, Russia, or any of the other places commonly mentioned in the press....
Arthur: Where hides evil in my kingdom, then?
Merlin: Always... where you never expect it. Always.
I need a bigger truck.
the 50s, the golden age of Hollywood! When oil was cheap !
I know one guy who said its going to 10$... and then we'll elect Ike to President.
Laugh now, cry soon.
This is getting real ugly real fast.
Bye stock market.
See ya several thousand DOW points lower.
It's been fun.
This is a surprise. Imports only down 0.6% year over year in the USA:
http://ir.eia.gov/wpsr/wpsrsummary.pdf
Counting illegal immigrants?
do not go wrong, when they realize this not working, prices just add a 1 digit in front of the actual value, just to get back what been wasted right now.
and price will go up, i say april.
you will see. if im wrong go delete account
Friends at credit desks telling me to put my helmet on.
weeeeeeeeeeeeeeeeeeeeeeee
Let's see,
The Russians say low oil is a US Plot against Russia.
The US asays low oil is a Saudi plot against US oil.
Saudi Arabia says low oil is a struggle to capture markets.
Venuzuela says low oil is a conspiracy involving everyone on earth against Venuzuela.
Iran says low oil is a great betrayal by Saudi Arabia.
BUT
Banking is dominated by a single 'internationa' but mostly European family - the Rothschilds - with lieutenants in the form of a US family - The Rockefellers (who have largely swallowed the Morgans over the last centtury)....both of whom have become mostly European, but have moved a large portion of their wealth into 'emerging markets' in the form of China.
AND
Low oil is good for China, and is good for Europe.
I'm thinking the smart kids in school did not take jobs in their national governments.
Boy, CNBS just keeps marching out those "Talking KNUCLE Heads" with the "great for consumer/economy BS". As if they're all expetrts on OIL??? Really?? Too bad FOX and Bloomberg suck as much to watch/listen to as we try to earn a living!
....even my hero Santelli thinks this is great! WTF????
if i had the money i would create the zh channel.
Whiting just bought KOG and Kodiak. Rigs hitting the grass, 24 consultants laid off from Hess in Bakken. It's going fast, grapes of wrath Bitchez!
KOG was Kodiak.
The last time crude was this low, the S&P was 666, it is now near ATH????? Something's Coming Joe
https://www.youtube.com/watch?v=kGbK5y94LOE
Great read...
Arrogance, Desperation, Lies & Truth“Facts do not cease to exist because they are ignored.” - Aldous Huxley
The level of data massaging by the government and their co-conspirators on Wall Street and in the corporate media is a futile attempt at a happy ending that will never come to fruition. The intensity and relentlessness with which the state and its quasi-state minions attempt to paint a false picture of economic recovery is equal parts arrogance and desperation.
http://www.theburningplatform.com/
That first graph, I assume this is from CME Globex WCC. Where can I find those numbers? I've already wasted a fair amount of time googling this, and can't see those numbers anywhere! Help!
Or not. Maybe these numbers come from Western Canadian Select. Who knows? I found this:
http://en.wikipedia.org/wiki/Western_Canadian_Select#Price_of_Crude_Oil
Either way, it sounds like these numbers are manipulated to hell and back, and all but impossible for the average Canadian to even get access to. I call massive bullshit...
Hyper-deflation
Where's the keys to the hummer?......
When you hit $30. Hand shake deal. Thank you!
In 30 days the new landscaping in Texas and ND... PRICE REDUCED...PRICE REDUCED.... PRICE REDUCED.
(deleted)
never mind
ekm1, even though many dispute, disagree or disparage what you have to say, please, continue to post. you give a wholly different perspective and that is something many of us love about ZH. the absolute mix of opposing opinions.
Fuck, $57 and it's game over. The panic cycle was due this week. "I have warned that a year-end closing below $75 will signal a serious trend change is potentially on the horizon. However, the critical support lies at $57. A year-end closing below this will signal a massive collapse a deflationary cycle will impact the oil producing regions. This will spark the old Texas-NY Arbitrage. When NY booms, Texas does into Depression. When Texas booms, the tables are reversed." M Armstrong.
look. nobody is at fault. nobody is causing this. It's simply a feedback loop in an unstable system. It'll fall till the unprofitable guys get crushed. Supply will go with it. Then the price will zoom backup to around the 2007 highs.
Google for damped feedback oscilations.
This.is.not.good!
Somebody is trying to crash the price and screw up all the bond loans, etc and bust the oil guys.
I would throw every free dollar I could right now at 6 - 9 month oil futures. If oil doesnt recover within that time, no one will care about losing their "retirement".
Of course, you have no "free dollars" to throw...
AND LOSE!
Oil News: Shale Drillers Slash Spending by 50%
By Matt DiLallo
December 11, 2014
http://www.fool.com/investing/general/2014/12/11/oil-news-shale-drillers...
excerpt:
"Years of outspending cash flow in order to chase shale growth has finally caught up with shale drillers. The sudden drop in oil prices is causing drillers to make deep cuts in order to make it through the current downturn in prices."
Oil Hits Record Highs as Fed Cuts Interest Rates
Associated Press |Tuesday, 18 Sep 2007 | 3:47 PM ET
gov. is pushing the BRICS country's to the edge, this will piss em off to no end and they will come up with a game plan to that will leave America an island, one good thing the .gov has been very good at... is BAD foreign policy.
GSI and G20 orgy fest.
Global Subsidies Initiative | IISD
http://www.iisd.org/gsi/
Track them down, they can no longer hide.
nice to see someone else getting fucked besides us merry band of PM holders.
Cheap oil is good for Israel. Is it starting to make sense yet?
Isreal is a tick on a dogs back. They are the common gipsy stealing wealth from America. Call it the Isreal EBT Nigger Express card.
Did you know that crude oil is a great lawn and garden fertilizer? Fuck yeah, it is! Oil Tell the woild, oi sez! Long live Project Mayhem... (Credit e e cummings) PS go long moustache wax, short russian hookers, hail eris!
You must of been picked on as a child. How many golden showers and toilot throne divings did you receive?
Temporary.
This is a supply issue. Not a demand one. A few projects go tits up and this is back in balance and we're back to $80 in no time.
If you're in Hy, you're sweating your balls off. But for well-capitalized majors and independents, this is nothing
nuu uhh. Reverse. This is a demand issue!! Supply is a function of price and this is a function of zero bound interest rates which encouraged overnight shale plays. But there was never a change in demand associated with the change in price and durable price at the end of the day is a function of real demand (volume). Though I agree only with your last statement - if you have a clean balance sheet that isn't levered to $100, this is a trivial matter, although - ALTHOUGH since volume as been declining since - 18 months ago, this will have a deleterious effect on profit expectations regardless, even for the most unlevered balance sheets out there. But $80 oil - nope. We see $35 before we see $80. Levered plays will be shaken out - assets will exchange hands from those who priced assets at $100 oil at 10 cents on the dollar - operations will now resume at $50 oil, or whatever, but, it won't need to be $100 oil. Economic axioms don't much care whether break-even operations require $80, $90, $75, or $2. Until demand volume picks up and takes up the glut......oil prices can go a lot lower and remain for a lot longer than most people think as demonstated by the last 5 times this has happened. Its NOT different this time. It never is.
Dupe
Who's blowing up? Things don't fall this hard, and this fast without something getting broken. Besides Sov risk, which fund or bank is getting crushed. Someone is getting murdered. There is a bomb out there, and it is going to blow soon. Buy the vix. Buy tsy. Keep your powder dry. Carry on.
"Well-Head" in North Dakota $40 ???
It is time for Junk Bond holders to panic. Their tens of billions in junk rated fracking form bonds are one disaster at this price. Remember, debt payments, interest costs, they don't care what oil prices are, the debt is the same! Some people and firms holding billions upon billions of Fracker's paper are looking pretty pale right now.
Support near 58.5
http://bullandbearmash.com/chart/wti-oil-daily-sharply-key-support-585-s...
weekly chart shows bigger picture
Wall Streets are backing their 'financial vehicles' for oil-related stocks. Two years later, they will unload these stocks to you.
One part of the economy like ____ could never take the whole economy down.
https://www.youtube.com/watch?v=GTF_jKfMQ6A
But wait, Peter Schiff told us oil was heading for $200 a barrel, high oil prices would hurt the US economy. So low oil prices will boost the economy, going by Schiff's logic.
That schiff interview was on August 27 2013 when people thought certain things about global unrest being a factor in certain areas being close off to traditional oil supplies.
People make the mistake of associating world conflict with rising oil prices as it did say 10-20 years ago. Now that the world is awash in oil and the economies of the world have been tied to the manipated price oil producers had no choice but to lower based on supply rather than world conflict
saudi arabia is in a fight for their being, they'll go all in.
just as everything else that could, at one time, (post 2008 crash), be measured monetarily, especially oil, currencies, markets, have been bubbles growing, and very costly inflation for joe six-pack.
what ever price food, stocks, gas, everything that cost more now than just after 2008 crash lows, is a BIS bubble, (qe).
oil just voided it's bubble, post 2008 crash value of oil, $55-$60 a barrel, (probably a fair value in a healthy global economy), and here lies saudi's huge problem, the global resesssion continues, meaning low demand is still there, saudi has to put other oil providers out of business, or they'll have to rent the palaces, and move the citizens into tents.
they claim no inflation, whats joe six-pack paying via 401k's for stocks, do you think their fairly valued, or are they a tad bit inflated, every economist in the world thinks so.
maybe i'm all wet but to me everthing has to reset back to 2008 crash levels or nothings going to work.
the BIS has made joe six-pack pay, (the inflation), for fiat values, and prices, on everything since 2008 crash, and the fun part is they used joes credit card.
i don't think i'm going to live long enough, but i want to see the fed., (the BIS), via americas politicians tell 200 million people you owe $----- per yr., along with the next 12 generations of your familes life times.
We are now in the range to see a temporary bottom as this chart predicts...
http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...
could it just be the GOV/FED driving oil prices down in a concerted effort to end Putin's reign?
The best things I've enjoyed about this drop in oil prices, besides lower gas prices, is that OPEC is taking it in the ass. Fuck those bastards.
i dunno why everyone is freaking out. prices will come back. and this is quite the ripe buying opportunity for quality energy stocks. yah some people might lose their jobs. hell, i might lose mine, i work in the energy finance sector. but i maintain a long-term view and i don't limit myself to one industry for my career. although i quite understand we ZHr's have a doom and gloom bent because of all the corruption we see going unchecked, so i understand.
but it's gonna be ok, fellas and ladies. life goes on.
Weza always sed to folks, them there oil companies are being used like giant vacume cleaners justa suckin the money out of po peoples pockets faster than theyza can spend it and now ya know what? No one has any money-god left to spend on cheap gas to go to the last two stores on the planet to see what kinds of expensive GMO food in baby sized packaging there is, or at the cheap chinese junk place, wally world.
Harumpth...go figure!
http://www.collective-evolution.com/2014/12/08/study-suggests-conspiracy...