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Crude Is Tumbling (Again)

Tyler Durden's picture




 

While mainstream media desperately played up the fact that oil prices were 'off the lows' this morning as some kind of positive news, that narrative is now dashed to winds of under-demand and over-supply. With WTI Crude prices testing the multi-year cycle lows once again, crashing below $54, we wonder how long before the Yellen effect wears off...

 

Since FOMC, Oil -3.8%, Energy Stocks +8.6%

 

And this morning's 'exuberance' over higher oil prices have been eviscerated...

 

Stocks can't decide if this is great news or terrible...

 

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Mon, 12/29/2014 - 13:23 | 5601795 FreeShitter
FreeShitter's picture

TPTB wants 40.

Mon, 12/29/2014 - 13:36 | 5601834 El Vaquero
El Vaquero's picture

At best, they only think they do.  Enjoy the cheap gas while it lasts.

Mon, 12/29/2014 - 13:43 | 5601856 CClarity
CClarity's picture

Short Texan and North Dakota mortgages!

Mon, 12/29/2014 - 13:46 | 5601863 El Vaquero
El Vaquero's picture

And hotels.  Don't forget to short the motels.

Mon, 12/29/2014 - 13:59 | 5601905 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Short ND strip joints. Those ladies need work also. Mr Yellen might be interested.

Mon, 12/29/2014 - 14:27 | 5602014 El Vaquero
El Vaquero's picture

ND strippers?  We like short shorts!

Mon, 12/29/2014 - 15:29 | 5602229 heywood2
heywood2's picture

 

Lap dances are $10. If you want a girl with all her teeth, it's $20.

 

Mon, 12/29/2014 - 13:37 | 5601841 weburke
weburke's picture

excellent, punish those that that oppose the petro dollar, and give the japanese what they were promised for taking their trillion plus savings and giving it to the us.

Mon, 12/29/2014 - 14:19 | 5601982 KnuckleDragger-X
KnuckleDragger-X's picture

It's not about punishment, it's about control. There has always been those who consider themselves to be the elite who consider it their natural right to control everything and everybody. They've tried it all throughout history and it has never worked...but this time it's different.

Mon, 12/29/2014 - 14:21 | 5601987 Troll Magnet
Troll Magnet's picture

Hmm...The Chosen People you mean?

Mon, 12/29/2014 - 13:23 | 5601796 quasimodo
quasimodo's picture

Awesome, I get a raise and oil is going lower, so what's not to like?

/sarc

Mon, 12/29/2014 - 13:47 | 5601872 Not My Real Name
Not My Real Name's picture

What's a raise? 

Mon, 12/29/2014 - 13:54 | 5601885 Publicus
Publicus's picture

It's when the minimun wage goes higher.

Mon, 12/29/2014 - 14:20 | 5601984 KnuckleDragger-X
KnuckleDragger-X's picture

A raise is what you get in order for inflation to kill you more slowly.

Mon, 12/29/2014 - 13:25 | 5601801 jubber
jubber's picture

FTSE...is positive with new lows for #Brent Copper Gold Silver Iron all at lows and the commodity heavy FTSE is up LOL

...who is holding the North Sea Oil Loan bag?

Mon, 12/29/2014 - 13:32 | 5601820 firstdivision
firstdivision's picture

The pensions.

Mon, 12/29/2014 - 14:21 | 5601999 KnuckleDragger-X
KnuckleDragger-X's picture

Yeah. pensions have been chasing imaginary returns for awhile now and when they collapse the riots will start...

Mon, 12/29/2014 - 16:58 | 5602593 sun tzu
sun tzu's picture

Dontcha know pensions avarage 8% annual returns? LOL

Mon, 12/29/2014 - 13:26 | 5601802 JohninMK
JohninMK's picture

Mmmmm bit of a gap developing. Might just be a few out there shorting it. Unless they know different.

Mon, 12/29/2014 - 13:29 | 5601816 Chad_the_short_...
Chad_the_short_seller's picture

Time to short OAS and WLL again

Mon, 12/29/2014 - 14:20 | 5601995 saints51
saints51's picture

Looks like old CL is ready for a low volume ramp a thon

Mon, 12/29/2014 - 13:34 | 5601824 buzzsaw99
buzzsaw99's picture

i know a few state gubbermints that will be bankrupt after just one year of this

Mon, 12/29/2014 - 13:36 | 5601833 Al Huxley
Al Huxley's picture

Probably not important states, though, so it's ok.  Seriously, though - US Energy Industry sacrificed as collateral damage in a global war, I never would have expected that.

Mon, 12/29/2014 - 13:45 | 5601853 El Vaquero
El Vaquero's picture

Hey now, my state may not seem important, but we have more nukes stored here than any other state in the union.  Bankruptcy and the instability it brings cannot be good when looked at in that light. 

 

Yeah, we're going to have some serious problems, considering how dependent our state budget is on oil and gas revenues.  Education accounts for something like 1/2 of the budget alone.  Good times.

Mon, 12/29/2014 - 13:51 | 5601878 rtalcott
rtalcott's picture

Education in NM...is that what it's called?  I'd rather hire a graduate of Albuquerque Academy than a Ph.D. from UNM!

Mon, 12/29/2014 - 13:59 | 5601903 El Vaquero
El Vaquero's picture

Science, engineering, medical and anthro are generally solid fields at UNM.  Everything else, meh.  Might as well be underwater basket weaving.  And even though you may learn CS very well at UNM, getting a CS degree from there only means that you are a decent computer scientist.  Nothing more, nothing less.  You'll know fuckall about how the economy works.  But you'll know LISP!

 

But, when paying for something in cash, I'll often tell the person at the register, "You had better count it.  I was educated in NM."

Mon, 12/29/2014 - 14:07 | 5601925 NotApplicable
NotApplicable's picture

Hey, at least I've used LISP in the real world. Meanwhile, learning Ada only taught me to hate compilers.

Mon, 12/29/2014 - 14:13 | 5601967 El Vaquero
El Vaquero's picture

I don't actually know lisp.  I do know that it is a mindfuck for most people.  OTOH, I once met a CS degreed woman from an institution that was out of state (don't remember which institution though) who gave me the glazed donut blank stare when I mentioned recursion.  How the fuck can you get a 4 year degree in CS and not know what the fuck recursion is?

Mon, 12/29/2014 - 16:16 | 5602424 post turtle saver
post turtle saver's picture

that's the "MIS CS" degree in action there... no hard science to speak of...

Mon, 12/29/2014 - 15:41 | 5602285 rtalcott
rtalcott's picture

Science and Engineering...surely you jest....

I say again...i'll hire the Albuquerque Academy grad first.

Mon, 12/29/2014 - 14:10 | 5601944 MalteseFalcon
MalteseFalcon's picture

"Hey now, my state may not seem important, but we have more nukes stored here than any other state in the union. Bankruptcy and the instability cannot be good when looked at in that light. "

 

LOL.

Is that a threat?

LOL.

Mon, 12/29/2014 - 14:18 | 5601983 El Vaquero
El Vaquero's picture

Nope.  Just an observation.  Bad financial shit leading to instability?  How much is a nuke worth on the black market, and how would such nukes be used?  What happens to nukes when gubment control breaks down?  A few miles east of the Albuquerque Sunport (airport) is an entrance to the Kirtland Underground Munitions Storage Complex.  If I know that, so do other people. 

 

Total capacity of warheads stored there is over 3,000, and includes the B-83 and B-61 gravity bombs, and W-80, W-88, and W-87 warheads for the Minuteman III and Peacekeeper ICBM's.

http://wikimapia.org/136866/Kirtland-Underground-Munitions-Storage-Complex

Now, who is going to guard all of that shit when shelves at supermarkets are empty?

Mon, 12/29/2014 - 17:01 | 5602618 MalteseFalcon
MalteseFalcon's picture

The same guys guarding them now.

They'll shop at a military PX, if it's necessary.

Mon, 12/29/2014 - 14:15 | 5601968 Creepy A. Cracker
Creepy A. Cracker's picture

Time to go back to home-schooling.  Great, real, educations and a HUGE shrinkage (theoretically) of government.  Good all around...

Mon, 12/29/2014 - 14:24 | 5602002 El Vaquero
El Vaquero's picture

Hell, even locally controlled education would be good compared to what we have now.  We've got the feds so far up our asses with requirements that it's not even funny, and the education that kids are getting these days sucks balls. 

Mon, 12/29/2014 - 16:02 | 5602367 El Hosel
El Hosel's picture

Not to worry..... The assets will be purchsed at pennies on the dollar by the "appropriate authorites" when the time comes. The balance of collateral damage will be "absorbed" by the unfunded/99% side of the great Ponzi. Bend over and start absorbing, Bitchez.

Mon, 12/29/2014 - 13:35 | 5601830 q99x2
q99x2's picture

This is a complete youtube John B. Wells show about the traitors in Washington via an interview with Scott Bennett

https://www.youtube.com/watch?v=nG_BtGL9dOY

Mon, 12/29/2014 - 13:34 | 5601831 agstacks
agstacks's picture

"It appears efforts to educate consumers about smart methods of saving oil, like car pooling, and electric options like the Tesla have finally gained traction.  The low oil price is due to Americans finding better, more renewable options for their energy needs.  We should all be thanking Al Gore and the left for bringing this issue to the forefront. We could have never arrived here without their trailblazing."

 

MSM

Mon, 12/29/2014 - 13:47 | 5601867 Government need...
Government needs you to pay taxes's picture

"Together with the UN and global government, we will continue to work to reduce the evil causes of man-made global warming while we encourage more sustainable/renewable lifestyles."

Mon, 12/29/2014 - 14:14 | 5601965 MalteseFalcon
MalteseFalcon's picture

Gasoline demand has been dropping in the USA since 2005.

Neither the UN or the global government issued an edict on that.

Mon, 12/29/2014 - 21:02 | 5601979 Creepy A. Cracker
Creepy A. Cracker's picture

"Together with the UN and global government, we will continue to work to reduce the evil causes of man-made global warming® (since rebranded Climate Change®, since rebranded CO2 Pollution®, since rebranded Climate Justice®, since rebranded Climate Disruption®) while we encourage more sustainable/renewable lifestyles."

There.  Clarified...

Mon, 12/29/2014 - 14:15 | 5601973 MalteseFalcon
MalteseFalcon's picture

ClickBait!

Mon, 12/29/2014 - 13:38 | 5601843 Baby Eating Dingo22
Baby Eating Dingo22's picture

If Obama would just blow up a few terminals and refineries, then DOW could hit 20k faster than he can say executive power

 

 

Oil futures swing lower as Libya fire rally sputters

Published: Dec 29, 2014 12:26 p.m. ET

Mon, 12/29/2014 - 13:39 | 5601844 CitizenPete
CitizenPete's picture

Expect the crooks in CONgress and the State to start talking about reducing gas taxes and taxing drivers by the mile.

Mon, 12/29/2014 - 13:46 | 5601864 Osmium
Mon, 12/29/2014 - 13:56 | 5601891 El Vaquero
El Vaquero's picture

Which would be fucking retarded.  It would take an enormous and costly bureaucracy to calculate and collect such a tax.   I'd be willing to bet that if you started measuring how much wear and tear a given vehicle puts on the roads themselves, you'd find a decent correlation between wear and tear and fuel mileage.  Big heavy vehicles are going to, on average, burn more fuel than small light vehicles.  If they did that, I'd put a new spedo gear in my T-Case that made my odometer read lower than it actually is.  $35 bucks and 10 minutes is all it would take.

Mon, 12/29/2014 - 14:09 | 5601932 Miffed Microbio...
Miffed Microbiologist's picture

El Vaq,

This has been seriously considered in Cali. Believe me, with GPS tracking systems and computer systems today this can be done. It really isn't that hard. My husbands computer system easily stores all a major retailer's worldwide transactions for multiple years. They run correlation studies on massive amounts of data all the time. Data mining today is not that of yore. Of course, the government would invest in some cobbled crappy system from some company who paid through the nose for access and they'd pay 10X for it. Cars have " black boxes" now to recreate accidents, how hard would it be to add some new features?

Miffed

Mon, 12/29/2014 - 14:10 | 5601938 NotApplicable
NotApplicable's picture

So... in other words... it's a win-win for the polticial class.

Mon, 12/29/2014 - 15:07 | 5602162 Bemused Observer
Bemused Observer's picture

As would a lot of other people too, I'm thinking. Such a tax would be a nightmare for anyone to try and calculate and collect. And it wouldn't be the kind of tax that could be hidden...you'd have to bring your car in to have the odometer read. Everyone paying that tax would know it, immediately.

And people who live in areas without public transportation could argue it was unfair, as they have no choice but to drive more than people in cities, and tend to be poorer.

Odometers will become obsolete because there will be so many that have been disabled or tampered with that it will become impossible to get reliable figures.

Are they going to conduct in-depth investigations of all vehicles? What if the odometer is found to be non-functioning at the yearly check? Now you can't calculate the mileage, and the driver claims he has no idea WHY it isn't working, it was last year...oh well, I guess you're just going to have to accept the fact that he only drove 50 miles all year, since that's what the odometer says. Unless you can prove he did something to it...good luck with that. Any idea how much it would cost to start doing detailed forensic investigations on millions of passenger vehicles every year? THAT is what you'd need to do to prove the driver actually DID something to that odometer. And that's only a downpayment on what it will cost when he gets a lawyer and challenges you in court...

How much were you trying to collect from this guy again? About a hundred dollars or so? You blew through THAT and then some the first day your lawyers have to show up to defend your actions in court. It's all cost from that point on...the taxpayers will love you when they get that bill.

Mon, 12/29/2014 - 13:44 | 5601858 pelican
pelican's picture

Putin just waits until the Saudi's start to burn through their cash.

Mon, 12/29/2014 - 13:46 | 5601861 stant
stant's picture

So cash in us$ is the place to be in a deflationary wave. Oh yes and maybe a few stawks.

Mon, 12/29/2014 - 13:50 | 5601875 roadhazard
roadhazard's picture

I like $1.99 gas. I see zero problem here. You will never see me whine about a price decline. Bring it fucking on.

Mon, 12/29/2014 - 14:02 | 5601913 Dr. Engali
Dr. Engali's picture

I paid $1.91 yesterday. I never thought I would see that price again.

Mon, 12/29/2014 - 17:42 | 5602785 MrButtoMcFarty
MrButtoMcFarty's picture

$2.69 at Jamaica Ave off Van Wyck in Queens NYC.

The price of paradise.

/s

Mon, 12/29/2014 - 13:54 | 5601882 franzpick
franzpick's picture

Crude future shows no trades for 10' plus, then opens at 53.20 down 60c from previous trades at 53.80 - watch the collapse here for free:

http://www.investing.com/commodities/crude-oil-advanced-chart

Mon, 12/29/2014 - 13:55 | 5601887 MATA HAIRY
MATA HAIRY's picture

I ask yet again--when will the central banks start driving up the price of oil by buying oil?

Who can stop them?

Mon, 12/29/2014 - 14:06 | 5601908 El Hosel
El Hosel's picture
  1. Wife filled up at Costco for $1.71 in the Denver area this moring. ..

P S : Janette,  For The Record  we are going to buy puts on the Bio Tech index with the savings. Thank you so much.

Mon, 12/29/2014 - 14:04 | 5601916 Ginsengbull
Ginsengbull's picture

Where will they keep it?

Mon, 12/29/2014 - 14:04 | 5601922 MATA HAIRY
MATA HAIRY's picture

they will print money and buy oil storage

Mon, 12/29/2014 - 14:34 | 5602040 El Hosel
El Hosel's picture

They can keep at Fort Knox, in the room where the gold used to be.

Mon, 12/29/2014 - 14:26 | 5602008 MATA HAIRY
MATA HAIRY's picture

why the downvotes? 

 

If you disagree, say why

Mon, 12/29/2014 - 14:03 | 5601919 MATA HAIRY
MATA HAIRY's picture

a place to lose all that cash saved on gas?

Mon, 12/29/2014 - 14:02 | 5601893 Dr. Engali
Dr. Engali's picture

Hold it together "market", just two moar days to lock in that banker bonus so they can trickle down on us.

Mon, 12/29/2014 - 14:08 | 5601939 El Hosel
El Hosel's picture

Yeah, then make it rain nail guns for a few weeks.

Mon, 12/29/2014 - 14:04 | 5601914 pound the vix
pound the vix's picture

Definitely Bullshittish

Mon, 12/29/2014 - 14:08 | 5601930 franzpick
franzpick's picture

Crude future now $53.14 headed for a 52 handle if the falling knife catcher game is called on account of injuries: 

http://www.investing.com/commodities/crude-oil-advanced-chart

Mon, 12/29/2014 - 14:11 | 5601955 El Hosel
El Hosel's picture

Getting very close to Peak Putin Fukin

Mon, 12/29/2014 - 14:12 | 5601947 franzpick
franzpick's picture

Crude $52.94: fill up those gas tanks before the price goes lower.

Mon, 12/29/2014 - 14:10 | 5601948 Quinvarius
Quinvarius's picture

I doubt it will bounce before the end of the year.  Too many people have bonus money riding on it.

Mon, 12/29/2014 - 14:12 | 5601952 surf0766
surf0766's picture

Nothing is too low for dear leader( our marxist)... Party like it's 1997

 

Mon, 12/29/2014 - 14:18 | 5601980 Sofa King
Sofa King's picture

Got hint as to where gas prices are heading this morning:

 

The bill for the office water delivery had a notice that stated that the Variable Gas Sucharge on the bill will be replaced with a fixed delivery surcharge.

Now call me crazy but they are a Water Delivery Company, what the fuck is a delivery surcharge?

Mon, 12/29/2014 - 14:33 | 5601993 LawsofPhysics
LawsofPhysics's picture

It would seem that whatever can be done in the paper gold "market" can also be done in the paper oil "market". I am shocked, just shocked I tell you...

"technology will save us"...

just the same, buy some puts...

Mon, 12/29/2014 - 14:21 | 5601994 earleflorida
earleflorida's picture

'Saudi's Intelligence (Sheikh Sultan [?] Bandar) Chief back to the Forefront'

and... "Which is the Truth?"

FWIW Dept.:

http://english.alarabia.net/en/News/middle-east/2014/03/25/Saudi-intelligence-chief-back-to-the-forefront.html

http://zadandunia.blogspot.com/2013/08/which-is-truth-prince-bandar-bin.html

NOW[?], if your asking oneself, what the fuck does this have to do with 'Crude Tumbling and tubbling some very much moar... please read between the abstracted arabic-mindset meme...,married to an adulteress USSA hegemony!?!

jmo

Mon, 12/29/2014 - 14:26 | 5602010 El Hosel
El Hosel's picture

This must make it very difficult to be a Federal Trader... trying to make the daily ATH with oil dropping like a lead winged flying monkey.

Mon, 12/29/2014 - 14:36 | 5602041 earleflorida
earleflorida's picture

new link:   http://theiranproject.com/blog/2014/03/25/saudi-intelligence-chief-back-to-the-forefront/

 

Mon, 12/29/2014 - 14:30 | 5602024 T-NUTZ
T-NUTZ's picture

USD to the MOON!  Bitchez

Mon, 12/29/2014 - 15:04 | 5602150 Ghost Writer
Ghost Writer's picture

Don't forget to factor in the over supply of labor too   https://www.youtube.com/watch?v=7Pq-S557XQU

 

Robots don't need fuel to drive to work

Mon, 12/29/2014 - 15:14 | 5602184 AynRandFan
AynRandFan's picture

Regular gas cost less in 2004.  So, it's not all that exciting yet.

http://www.eia.gov/forecasts/steo/realprices/

Mon, 12/29/2014 - 15:17 | 5602191 Remington IV
Remington IV's picture

Russia's fault

QE's fault

Mon, 12/29/2014 - 15:50 | 5602308 rycK
rycK's picture

I have some problems believing that the world  oil demand schedule is suddenly warped to the down side. This price crash looks like a combination of speculation gone sour and some small marginal supply effects. I cannot see a major cutback in energy use by the BRICS or West that could account for this drop. Who is cutting back on oil and sacrificing their output? Are we going to see more air travel due to lower fuel costs of some %40 below last year?

 

Oil should rise to $80 soon. 

Mon, 12/29/2014 - 16:00 | 5602361 earleflorida
earleflorida's picture

'YOU don't want a "Carbon Tax",... well you can't handle the TRUTH?' That's right! We're gonna shove the "Oil Export Ban" up your ass!

What's that[?], you say you'll piss-n-moan to your congressman. Well go ahead! They've always had a hard-on for the plebs... as they use a crude-approach pissing awe[?] over your involuntary anal-leakage from every-orifice in your carbon-based body[?], while ya feel-it sucking and pumping at your lubricated back pocket?

Whoa?!? Hope'y and Chang`y

http://en.wikipedia.org/wiki/Carbon_tax

http://www.forbes.com/sites/thebakersinstitute/2014/12/23/a-crude-approach-to-evaluating-the-us-oil-export-ban/

jmo   

Mon, 12/29/2014 - 16:10 | 5602404 El Hosel
El Hosel's picture

Looks like Ol Yeller is getting dragged down in sympathy with crude oil.... Sympathy by the Feds Devil

https://www.youtube.com/watch?v=AsWR0CTWazQ

Mon, 12/29/2014 - 16:12 | 5602411 robertocarlos
robertocarlos's picture

OK but in the future where are you going to get the $1.71 from to buy the gas?

Mon, 12/29/2014 - 16:26 | 5602464 Ewtman
Ewtman's picture

OIL still has a long way to go to find a bottom. It should find some temporary support shortly, however.

 

http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...

Mon, 12/29/2014 - 18:01 | 5602854 juicy_bananas
juicy_bananas's picture

Can we stop using the petrodollar already?

Mon, 12/29/2014 - 18:17 | 5602906 dojufitz
dojufitz's picture

where is L Williams when u need him.....?

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