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The Carnage Continues - Middle East Stock Markets Are Bloodbath-ing

Tyler Durden's picture




 

Following Friday's US weakness and UAE's hint that $40 oil is coming next, the crude carnage continues as Middle East markets are crashing. As WSJ reports, the bearish direction of oil prices again spooked investors in Dubai where the DFM General Index finished down 7.6%, extending Thursday’s 7.4% rout. The bloodbath extended across the entire region with Abu Dhabi down 3.6%, Qatar slid 5.9%, Kuwait fell 2.9%, and Saudi Arabia’s market, the largest bourse in the region, retreated 3.3%.

 

Bloodbath-ing...

 

As one analyst warned:

"the severity of this decline could very well be explained by investors covering margin calls as leverage was used on the way up over the past year."

And shows no signs of stopping...

 

Charts: Bloomberg

 

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Sun, 12/14/2014 - 14:23 | 5550608 buzzsaw99
buzzsaw99's picture

margin? Allah ain't gonna like that.

He has power to send torment on you from above or from under your feet, or to cover you with confusion in party strife, and make you to taste the violence of one another...

Sun, 12/14/2014 - 14:30 | 5550645 Publicus
Publicus's picture

More revolutions in the middle east are coming. It'll all just be a glass parking lot when all is said and done.

Sun, 12/14/2014 - 14:33 | 5550669 Pool Shark
Pool Shark's picture

 

 

Dubai?

Sounds more like Don't-bai...

 

Sun, 12/14/2014 - 14:46 | 5550718 max2205
max2205's picture

So much for closing on those 20 snow making machines

Sun, 12/14/2014 - 17:58 | 5551201 JamesBond
JamesBond's picture

Saudi Arabia was the black swan.  Interesting historical irony for the history books. 

Sun, 12/14/2014 - 14:49 | 5550730 Escrava Isaura
Escrava Isaura's picture

 

 

Pool Shark

Now that's funny.

 

Anyway, where is Dontbuybanker when we need him?

 

Sun, 12/14/2014 - 15:05 | 5550764 Crisismode
Crisismode's picture

 

 

BUT . . . BUT . . .BUT . .

Abe's party just Won Reelection!!

Surely THAT should send US markets into the green stratosphere tomorrow!!

Don't those Mideast people unserstand what is REALLY important?!?!?!

 

Sun, 12/14/2014 - 15:07 | 5550776 Greenskeeper_Carl
Greenskeeper_Carl's picture

That would be my biggest signal that maybe a true market decline is underway. USDJPY is sure to go on a tear tomorrow, now that the Japanese have given their consent to moar rampant money printing. If the markets don't respond with their usual FX driven ramp tomorrow, but follow the rest of the world down , then maybe this could actually signal the plunge.

Then again, maybe it's just wishful thinking on my part. I'm tired of losing my ass on SPXS.

Sun, 12/14/2014 - 15:18 | 5550797 Escrava Isaura
Escrava Isaura's picture

 

 

If we have this carry trade unwinding, you would be 100% correct. Carl Denninger brought USDJPY unwinding positions as the 2008 trigger.

 

So, it is unlikely The Power Elites will let it happen like in 2008.

 

Sun, 12/14/2014 - 15:59 | 5550921 gatorengineer
gatorengineer's picture

Very good point, but I think you gotta believe that it was priced in..... Japan has alot to gain by Cheap oil, helping their balance of trade.  be interesting to see if we are sub 118 tomorrow or pushing 120....  I am sure Goldman knows....

not many places you can get away with a 50% currency devaluation in two years, but Japan is about it, without major unrest.  Try doing it here with the FSA and all hell would break loose.

Sun, 12/14/2014 - 14:40 | 5550698 DelusionalGrandeur
DelusionalGrandeur's picture

If only the world could be so lucky!

Sun, 12/14/2014 - 14:41 | 5550702 Monty Burns
Monty Burns's picture

Let's hope so.  Every regime in the region except maybe that in Oman is utterly corrupt without any consideration for its own citizens, still less for the slaves they import to do all their work.

Sun, 12/14/2014 - 15:49 | 5550887 Pure Evil
Pure Evil's picture

Are you sure you're not talking about Washington D.C.?

Sun, 12/14/2014 - 19:53 | 5551506 knukles
knukles's picture

Oh he was talkin' 'bout Ferguson.... Which BTW, has turned into a net exporter of jobs and slaves.

Sun, 12/14/2014 - 15:53 | 5550891 Mike in GA
Mike in GA's picture

In response to Publicus glass parking lot comment: better late than never

 

Sun, 12/14/2014 - 14:20 | 5550612 Volaille de Bresse
Volaille de Bresse's picture

I can imagine a man in Moscow laughing his ass off...

Sun, 12/14/2014 - 14:37 | 5550690 One And Only
One And Only's picture

Is his name Barbara Boxer?

Sun, 12/14/2014 - 14:23 | 5550624 FieldingMellish
FieldingMellish's picture

It always looks like there is no sign of stopping... until it stops. Don't forget these bourses were closed on Friday so its also a little catch up with the West.

Sun, 12/14/2014 - 14:33 | 5550642 One And Only
One And Only's picture

Middle East really punishing US shale and Russia.

Keep pounding em Allah.

I have $DUG up the asshole. So keep pumping. Just don't ever, ever stop this thing that you're doing. I mortgaged my house and sold my family into slavery so I could lever myself short everything as much as possible and get rich from this shit so don't you stop.

Sun, 12/14/2014 - 14:29 | 5550644 franzpick
franzpick's picture

We'll all be watching AU and the carnage continuation after 3pm CA on the free futures link. BYOP (popcorn):

http://www.investing.com/indices/us-30-futures-advanced-chart

 

Sun, 12/14/2014 - 16:32 | 5551006 DoChenRollingBearing
DoChenRollingBearing's picture

Will it be worse?

Bloodbath-ing-er?

Sun, 12/14/2014 - 14:29 | 5550649 Make_Mine_A_Double
Make_Mine_A_Double's picture

The social compact in the Gulf is built on a cushion of oil wealth. Take that away for any length of time and you'll see serious unrest in those countries in short order.

Sun, 12/14/2014 - 14:39 | 5550676 One And Only
One And Only's picture

OoOoOoOoOOoOooO instabiliteeee in the Middle East.

Don't threaten me with a good time. What...are people with towels on their heads gona start running around and raping children if the price of oil goes down?

Sun, 12/14/2014 - 14:44 | 5550707 Monty Burns
Monty Burns's picture

They do that anyway even with a high oil  price. Their Sacred Book allows child brides, you know.

Sun, 12/14/2014 - 14:53 | 5550733 One And Only
One And Only's picture

That's my point. If you're in the Middle East you're getting raped PERIOD. Price of oil high = raped. Price of oil low = raped. Your wife gets raped, your kids get raped, you get raped. Best case scenario for you is an American drone bombing your wedding reception.

 

Sun, 12/14/2014 - 15:51 | 5550896 Pure Evil
Pure Evil's picture

I'll take "an American drone bombing your wedding reception" for $500 Alex.

Sun, 12/14/2014 - 14:45 | 5550713 Monty Burns
Monty Burns's picture

They do that anyway even with a high oil  price. Their Sacred Book allows child brides, you know.

Sun, 12/14/2014 - 18:33 | 5551301 logicalman
logicalman's picture

The Old Testament is SERIOUSLY scary.

I'm an atheist, but I've read the whole of the Old and New Testaments.

Can be very useful.

I've had people say to me "I bet you've never read the Bible" - My usual response is "I've read both the Old Testament and the New, have you?"

Usually leads to silence.

 

Sun, 12/14/2014 - 14:29 | 5550650 philosophers bone
philosophers bone's picture

"Good Morning, it's [your broker].  I'm just looking at your account this morning and see that it's short by $[x].  If you could send a cheque in that amount by Tuesday morning, that will put you onside.  Maybe send a little extra in case the volatility continues."

[Repeat every Monday until you're out of cash and out of stock].

But....whatever you do   "STAY THE COURSE!!", lol.

Sun, 12/14/2014 - 14:32 | 5550666 junction
junction's picture

In the summer of 2008, the price of oil plunged over $100 a barrel, from about $135 a barrel to, for a short time, about $30 a barrel.  While the cratering of mortgaged backed securities including CDO derivatives is given as the reason for the $700 billion TARP bailout, the cataclysmic decline in oil prices should have wiped out commodity traders like Goldman Sachs on the wrong side of the oil divide.  At the time, one oil expert said the barrel price of oil should have been $65. When President Obummer signs the budget bill tomorrow, it will provide Citibank with federal insurance on the disastrous decline in the value of its oil-based derivatives.  Almost as good as TARP funds, funds that were originally supposed to help homeowners facing foreclosure.  As always, Wall Street owns the lying politicians whose votes have destroyed the middle class worldwide.

Sun, 12/14/2014 - 14:36 | 5550682 Wahooo
Wahooo's picture

Without or without the legislation, the Feds would never allow the banks to fail.

Sun, 12/14/2014 - 14:47 | 5550722 Pareto
Pareto's picture

And therein lies the problem - as always.

Sun, 12/14/2014 - 14:50 | 5550732 max2205
max2205's picture

Mrs Irony would bave Citi announce bancrupcy DIP on Tuesday.

 

In your face reverse split buyers!

Sun, 12/14/2014 - 14:58 | 5550747 One And Only
One And Only's picture

If that happened I would vote out my incumbents and vote for the other party that already did that! HA! Don't fuck with democracy,

Sun, 12/14/2014 - 18:35 | 5551307 logicalman
logicalman's picture

If you vote, you are complicit in the crimes of government - simple as that.

 

Sun, 12/14/2014 - 14:38 | 5550685 Pool Shark
Pool Shark's picture

 

 

Sounds like I'm not the only one who found the timing of the Cromnibus bill's passage a bit too convenient...

 

Sun, 12/14/2014 - 15:11 | 5550788 Crisismode
Crisismode's picture

 

 

"Sounds like I'm not the only one who found the timing of ANY BIPARTISAN bill's passage a bit too convenient..."

 

There, fixed it for you.

 

Sun, 12/14/2014 - 14:34 | 5550668 I am a Man I am...
I am a Man I am Forty's picture

nice work OPEC

Sun, 12/14/2014 - 14:36 | 5550677 DelusionalGrandeur
DelusionalGrandeur's picture

Good, burn that shithole to the ground! Fuck em and feed em fish wrapped pork rinds, anally, of course, because according to our lovely and grotesque CIA, its an approved torture method.

Sun, 12/14/2014 - 14:36 | 5550678 Q-Q-Q
Q-Q-Q's picture

Who is this Martin Call, he keeps on leaving messages on my answerphone...........now which pimped Bentley should I drive today?

Sun, 12/14/2014 - 14:41 | 5550697 sony1
sony1's picture

Lol, im getting scared reading all these bearish articles lol. Funny times.

Sun, 12/14/2014 - 15:03 | 5550763 blaireauhedge
blaireauhedge's picture

I know. An entire weekend with the most bearish articles on Zero Hedge can only mean one thing: DOW up 300 points tomorrow, back near 18,000 by Wednesday.

Sun, 12/14/2014 - 14:43 | 5550706 Dr. Engali
Dr. Engali's picture

I've got the popcorn, who is supplying the beer?

Sun, 12/14/2014 - 14:47 | 5550725 kowalli
kowalli's picture

who is supplying the bear?/sacr

Sun, 12/14/2014 - 14:44 | 5550711 ebworthen
ebworthen's picture

Margin calls?  Good.  Let's hope there are enough margin calls to get the S&P to 666.

Sun, 12/14/2014 - 15:00 | 5550756 Dr. Engali
Dr. Engali's picture

666? My you're a pessimistic one. I'm thing more like S&P 400 for a bottom when this bitch finally vaporizes.

Sun, 12/14/2014 - 14:46 | 5550720 kowalli
kowalli's picture

but what about counter-party ? hedge accordingly?

Sun, 12/14/2014 - 14:48 | 5550728 joego1
joego1's picture

Why do I get the feeling that this oil sale is going to give way to war and "sorry oil not available at any price".

Sun, 12/14/2014 - 15:03 | 5550760 IridiumRebel
IridiumRebel's picture

Oil is a needed component for war so the cheaper the better err....more conducive to war.

We are on the precipice.

Sun, 12/14/2014 - 14:55 | 5550743 matt1021_98
matt1021_98's picture

It's ridiculous to say they're "hinting of $40 oil". That's the typical ZH exaggeration factor. Not to mention, the main driver for the oil collapse is the US$ strength, not the lack of cutting a few million barrels of OPEC supply. Smarten up.

Sun, 12/14/2014 - 14:58 | 5550750 Sages wife
Sages wife's picture

Party pooper.

Sun, 12/14/2014 - 15:12 | 5550757 kowalli
kowalli's picture

wake up, it's not dollar strength - its other currencies plunge

Sun, 12/14/2014 - 18:40 | 5551319 logicalman
logicalman's picture

Comparing the 'value' of one fiat with that of another is pointless.

Zero is the same in any language, that's why gold/silver will eventually win (as long as the nukes non't fly).

I hope I live that long!

 

Sun, 12/14/2014 - 15:04 | 5550762 Dr. Engali
Dr. Engali's picture

I know it's been a long time since we have seen an actual market work, so I'll forgive the fact that your knowledge of markets is next to zero.

Sun, 12/14/2014 - 15:09 | 5550781 blaireauhedge
blaireauhedge's picture

Oh it's dollar strength, is it? Yet "dollar strength" is not reflected in any necessities at the grocery store, in airfare or in stocks.

Yeah, it's "dollar strength".

Sun, 12/14/2014 - 15:05 | 5550770 blaireauhedge
blaireauhedge's picture

Notice how oil crashes in flame and bourses in the middele east are impacted symmetrically, but Chevron and Exxon are holding up pretty well?

Sun, 12/14/2014 - 15:06 | 5550772 Al Huxley
Al Huxley's picture

No big deal, the Nikkei will soar as soon as it opens, I'm guessing a record one day move on their resounding commitment to total destruction, and that should be that catalyst that turns things around for the DOW and S&P.

Sun, 12/14/2014 - 15:10 | 5550785 blaireauhedge
blaireauhedge's picture

Exactly!

Sun, 12/14/2014 - 15:08 | 5550775 NoWayJose
NoWayJose's picture

The Oil Ministers are a bit smug saying that they are happy with cheap oil, but I don't think it will be much longer before the Finance Ministers start calling them with big time complaints about (unintended) stock market crashes, drying up of investment capital, losses and defaults on building projects, and concern over paying entire country's bills.

Sun, 12/14/2014 - 15:15 | 5550798 Al Huxley
Al Huxley's picture

I understand they're sitting on loads and loads of relatively liquid assets.  If they lose money for a couple of years selling oil at a loss, but put the Russians and the US out of business in the process, then who gives a fuck.  The only question is who they're working with -is it Barry?  The Chinese?  Putin?

Sun, 12/14/2014 - 15:20 | 5550806 kowalli
kowalli's picture

I think they just want to get more market share and get ride of some competitors in oil - they don't care who are they. I just think - every nation just want to survive a crisis best way they can.

Sun, 12/14/2014 - 15:22 | 5550810 Crisismode
Crisismode's picture

 

 

All three.

One or two more than the other one or two,

depending on the day of the week,

and which SA prince is on rotation duty at the oil pricing screen that afternoon.

 

Sun, 12/14/2014 - 15:40 | 5550846 CL Spec
CL Spec's picture

You forgot to mention their old allies in Buckingham Palace.

http://www.larouchepub.com/special_report/2013/bust_the_london-riyadh_gl...

Sun, 12/14/2014 - 15:27 | 5550827 ThisIsBob
ThisIsBob's picture

Wonder is they'll be needing to sell some SnP's to raise scratch?

Sun, 12/14/2014 - 16:08 | 5550890 oak
oak's picture

the true motivation of saudi on crude oil price dropping is still unknown. against the us shale oil industry and the saction against russia might be it initially.  now it is overdone and mutual destructive. it is not rational and needs to look into this deeper

 

Sun, 12/14/2014 - 16:20 | 5550973 wesson
wesson's picture

Saudi and generally Arabs societies share the same issue: the population is very young and unemployed, while their leaders are elder completely clueless for developping their country outside of the oil market.

 

So far money is the cement to all, and keep the society calm. But should the money flow stop because of collapsing oil prices, and you will have in those countries big time revolutions that western media and politician won't like much.

 

 

Sun, 12/14/2014 - 16:50 | 5551041 hairball48
hairball48's picture

What's stopping the Chinese from using their increasingly worthless(worth less?) US$ reserves to buy oil at bargain prices? What sort of storage capacity do they have? Or how much can they buy up in the futures market?

Is what I'm asking nuts?

I mean which would the Chinese rather have? US dollars whose value could disappear overnight, or Oil?

Hairball...

Sun, 12/14/2014 - 17:00 | 5551068 Cthonic
Cthonic's picture

Ninety million barrels.  Building towards a 500 million barrel capacity strategic reserve (hundred days' worth of imports) by 2020.

 

http://www.scmp.com/news/china/article/1644890/china-reveals-size-strate...

https://www.tankterminals.com/news_detail.php?id=2354

http://www.bloomberg.com/news/2013-05-14/china-seen-boosting-emergency-o...

Sun, 12/14/2014 - 17:29 | 5551130 Fix It Again Timmy
Fix It Again Timmy's picture

Seeing that I am given only one lifetime, I shall not waste one precious moment by trying to figure out these "monkeyshines".....

Sun, 12/14/2014 - 17:33 | 5551138 prefan4200
prefan4200's picture

We blood-bathed some folks.

Sun, 12/14/2014 - 17:42 | 5551158 Ewtman
Ewtman's picture

The carnage will carry over to the US tomorrow if these projections are accurate...

 

Dow

http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...

 

S&P 500

http://www.globaldeflationnews.com/sp-500-indexelliott-wave-update-for-w...

 

Sun, 12/14/2014 - 17:54 | 5551191 Bemused Observer
Bemused Observer's picture

Yeah well I guess this would have been a pretty good prediction, with oil going down and all.

Sun, 12/14/2014 - 17:54 | 5551192 Bemused Observer
Bemused Observer's picture

Yeah well I guess this would have been a pretty good prediction, with oil going down and all.

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