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"There Is Moar Blood" WTI Crude Plunges Into The $40s
WTI crude oil prices are now down almost 55% from the June highs, the impossible just happened... WTI Crude broke into the $40s... the 6-month plunge is the largest since the pre-Lehman plunge and 2nd biggest plunge in 28 years.
WTI back under $50...
Ugly...
Unequivocally not good...
Energy stocks have ropundtripped to pre-Fed levels...
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don't worry .....we're in a steady recovery
Love it, love it, give me moar of it.
hope the deflationists enjoy their 5 minutes in the spotlight...
you ever take a look at iron ore and copper--a little longer than 5 minutes
Our markets are coming unglued
Just look at a chart of our crude
Like many suspect
Our markets are wrecked
From mountains of debt we accrued
You are to words what William Banzai is to art. Brilliant.
not to be a bitch, but im showing low tick at 50.02
A lot of slow learners outthere
https://www.youtube.com/watch?v=-Bw39SIiHrQ
brent is indicating 50 should have been broken already
If anyone thinks these prices are here to stay, they should examine history. The Saudis are doing the same thing they were in the '80s - oil peaked at around $100/bl (2014 dollars), and fell to around $30/bl (2014 dollars). This is going to be a tremendous buying opportunity, after shale/russia/etc are pushed out of the market.
Don't worry, we'll be back to 5$/gal gas in a few years and then we can read on ZH all the articles by the same people today calling low oil "the death of the world economy."
WRONGGGGGG!!!!!
Gonna need some more non-gmo popcorn for the economic collapse (or if you prefer to call it the start of World War 3)
Pretty sure we're going to be the only ones eating popcrn when this shitshow goes into high gear. And WW3 will be fought with sticks and swords once JPM and Goldman wreck the earth.
Yes the bankers are the military, destroying all for the sake of a few. Scorched policy and what not.
up! no blood on their hands just in the streets, ha...
+1 I hear your frustration. Its like its SO WRONG that there actually isn't any point to a rebut. Happy New Year HB
Could give a fuck about 3 years from now. - what a retarded statement. and nobody is calling for the death of the world economy! jfc! a return to normalcy, where central bank retardation is rendered useless, null, and void - yes. End of the world economy? Nominal prices fall, real interest rates rise, assets trade hands and both bids and asks fall - FOR EVERYTHING. Used to be called a correction, but yeah, I guess anybody talking about end of world economies - this is as far as they get.
Price shocks of the kind you expect in 3 years (on oil, or any other commodity) are short term adjustments - ALL ELSE EQUAL. But Central Bank support through interest rate suppression and bond and stock purchases - this is a different matter. A non-market interference such as this will render what you say true, and yet - here we are with interest rates essentially near zero. What motivates $5/gal gas - seriously? Negative rates? Prescient arrogance. EABOD!
Go look at Texas RRC numbers back then. From 1980 to 1985 there were 35,000 wells added and production dropped from 2.5mmbbl/day to 2.3mmbbl/day. This time around there have been 28,500 new wells and production has increased since 2009 from 980mbbl/day to 2.8mmbbl/day. Big difference there, can you spot it? I am not sure the Saudi's realize it.
Bingo. A case of "careful what you wish for..." re well productivity.
Upshot is that hyperproductive wells may drive U.S. production UP, even as the rig count falls by 30%.
The world needs some Banzai moderators
You're a poet
we're glad to know it
Awesome! Well said.
I'm debt free. I love it.
Not if you're an American citizen. In that case, you're heavily in debt through your governments borrowing.
Never heard of odious debt?
Yeah, good luck with that.
Absolutely right. And according to the new American Debt Collection Act that was recently signed by President Obama, you and your children and their children are from now on obliged to provide services until the debt is paid off. American Comrade, you too can become a hero of labour.
Here's to hoping for $10/ bbl.
.89/ gallon would be VERY enjoyable.
Might even haul out the '67 camaro 327 4bbl from storage & gun it at every stoplight on the way to work.
Tach up to redline through every gear. I'll be young again!
For the same cost as someone driving a wimpy, sissy prius in 2013, I can drive a loud, offensive, polluting, totally satisfying, classic musclecar .
Good times!
I took my Supercharged Saleen (with Gold rims - I did that for a reason) for a good thrashing this weekend....no Cats (took off the 6 cats that were mandated from Cali). Loud, smells like gas and I ran into a Prius and a 3 thousand RPMs my car will almost make you deaf....I gunned it and he was sweaving all over the place, lol
"I gunned it and he was sweaving all over the place, lol"
You did the right thing.
Prius boy probably had a nice, spontaneous colon purge after that... which is nice.
See, you're actually protecting fellow motorists' health by doing that.
Well done.
You could also wait for a day when the rain stops and nail some puddles with people walking on the sidewalk too....
What I did was funny, what you are talking about is just mean.
It's ok, he was driving the Prius.
LOL! None of my cars get more than 13mpg around town or 20mpg on the highway. I have a RR Sport Supercharged that gets around 13mpg combined.
Ouch, one of teh most expensive and unreliable vehicles ever to own. Yoiu better hope the Dow bounces back. lol
Psychological has Been Broken Thru !!!!!!!!
Once the psychological hymen is broke, they start whoring it up.
pods
Once you pop, you can't stop!
(Until shale producers start to default on their debts and junk bonds get fuckered anyway.)
Oh the horror, the horror...personally I like low oil prices and if it helps bring down this fake financial paradigm it's even better...win win for me
Really, what happens if gold is $500? What are you going to do? How do you know the financial paradigm is fake?
Buy moar.
Agai...this hits the debt markets not equities.
I would not be surprised if something far larger than Detroit "goes down" here. This is not a problem for the stock market in my view even if we're staring at a twenty percent correction or more. "Be greedy when others are fearful" looks like it is upon us...
"How do you know the financial paradigm is fake?"
Are you for real?
LOL I know rigth....anyone who actually uses thier brain, knows this shit is as fake as Pamala Anderson's tits
He's really thumping the $500 gold meme this morning. He doesn't seem to understand that just makes the stacks larger.
LOL! Not if you don't have job to make those fake $ so you can buy gold with them? Otherwise how you going to get gold? Trade some oil for it? Oh wait, you don't have any oil do you?
I'm not too concerned about not finding work, there is always someone willing to pay for mixing and mastering.
Do you spend their money or not? Do you breathe air or not? How do you know air is not fake?
This comment makes no sense.
Lol
Thanks for the laugh!!
I'll answer the first part of your question, the part that isn't insane.........
Gold at $500???? I buy every other day until the power goes out and the checkpoints go up, that's what:) any questions?
Why do you have money if all you care about is gold?
Don't know if you noticed, but the USD has strengthend quite a bit and gold didn't fall very much, so basically no you will not see $500 gold. But we'll imagine that gold does hit $500, if it does, I'm selling every asset I have and buying it (the real stuff, not the promises of it).
"Really, what happens if gold is $500?"
Maybe we'll be super lucky and the system will go full circle, back to $20 gold.
Hey dipshit.
Gold is measured in troy ounces. Not in dollars.
Oil is measured in barrels, so what. You can't get oil for gold or gold for oil.
Get a Tesla, LOL.
LOL
Just make sure you get your garage lined in 3/4" fire code Sheetrock first
http://www.teslamotors.com/forum/forums/bi-another-tesla-caught-fire-while-sitting-toronto-garage-month
It's better than putting up the lead lined shit that they use in X-Ray rooms.
the guys said : It'll go down to 10...Can't remember his name.
Mike Maloney
Rhymes with bologna so it can't happen.
bologna has meat balls not just noodles. Noodles go to 10 but meat balls have more consistence.
Filled up my car for $26 this week. It sure beats filling up at $64. I'll take deflation any day.
Much nicer to buy heating oil now too. Temps are going to drop here and its nice to have the heat on a comfortable setting when we have morning coffee.
It is an exciting time Dr E. I have a work truck that I use spring and summer so I get to play a waiting game and watch the gas prices go down. I have all winter to wait before I have to fill it up, so it's exciting to watch as my eventual fill up gets cheaper and cheaper.
.......and all day Doc.!!
Let's drill some more wells. I am sure if we can get field hands for $7/hr and rigs at $5k/day we could handle $25/bbl oil. The oil is there, it can be gotten now. So what is going to keep people from getting it?
You can make $10 an hour pressing buttons at McD's and asking if they want fries with that.
This too, will change - DOWN.
You think minimum wage will go down? Maybe union and elected officials will take a pay cut, too!
There's really not any demand for oil at $60/barrel?
Something nasty is going on and I'm reminded of a passage from the Tao. No matter how good these low oil prices seem as an end user, it's never, ever a good sign when a price fluctuates wildly no matter whether it's going up or down.
"What does it mean that success is as dangerous as failure?
Whether you go up the ladder or down it,
you position is shaky.
When you stand with your two feet on the ground,
you will always keep your balance."
I agree with u generally speaking, however this oil shit has gone full retard like everything else in our fiat, ponzi world!!!!
It's hard to tell what demand is, because all the government reports on the world AND domestic GDP are manipulated, in order to maintain the status quo and security. It's hard to tell what cost is, because all the corporate filings are manipulated to maintain inflated fake leveraged stock deals and prices too!
Then you introduce all this geopolitical, national security bullshit on a global scale, Country's needing oil reserves for X, Y, and Z war ambitions and security reasons.
My point is, there very well might be demand for oil at $60 or $70, but the Ponzi scheme is pumping oil like demand is for $125 oil to continue to finance their leveraged debt and socialist economics control variables, like entitlements, pensions, etc!
And this is happening world wide now, thanks to uncle Yellen and her past ponzi pumpers circa 2008 onward!!!
The Saudis know this and have called the worlds bluff on all this bullshit and will continue to pump at $125 levels until it blows up and the US will have to continue to pump to maintain their ponzi financed oil infrastructure and the third world dictators will have to pump more as the price drops to maintain their Socialist Obligarchy power structures!!
So you see, what your watching is the the last global capitalist gasp of oil, it's all unicorns and fairy tale shit from here, until the wars and fires start burning shit to the ground!!
I can't believe they haven't trotted BullTard or Yellen out to say all is fine.
That alone tells you something.
Williams had the lead today. Said that tightening could come later than expected. Imagine that?
Hmmm... well, my expectations are never, so...
They are BTFD now. Would love to see the dip buyers get crushed this time.
Transitory, bitchez!
.... or blow up a pipeline (or two) ...
They screwed the traveling salesman and I dont travel and 4 million plus health insurance salesman are no longer traveling so what did they suspect. Sure glad i paid off my debt and am living frugle but how can this country survive with millions like me paying no taxes? Hmmmmm
They just ask more of the rest of us.
This won't be good for GDP. I can imagine UE for oil patch people will spike too.
Just wait till Mr. Yellen raises rates! Shit, they will be pumping QE again before they start raising rates.
pods
"Turn those machines back on!"
April sounds like as good a time for QE4 as any. Let's make it an even 4 trillion this time, Janet.
Man, those charts make me horny!! Look at what happened right after the big plunges! I love doom and gloom, and catchy phrases such as, "it's different this time", or the even more moronic "it's different this time because it is". If you aren't getting ready to invest heavily in energy you are a fool, and will be stuck on the sidelines, like many have been since 2009.
I would say that you are right and it would be a good idea to go long on oil sometime between now and the next 6 months, but you never know when they're going to engage the presses at warp factor "fuck you" and youi never know what they're going to buy with it. If the Fed stays out of this, there will be a junk bond crisis that will likely spread. If the Fed doesn't stay out of this, all bets are off. If I were a betting man, I would bet on a junk bond crisis, followed up by PRINT MOAR! I'm not going to bet on that though. I'm not an insider.
Nailed it....!!
This SHOULD lead to a nice little crisis that could have implications for risk assets across the board (stocks & real estate, in particular).
That said, once the Fed reloads the QE bazooka, all bets are off. The fed is the X-factor keeping me from going all-out short and forcing me to play out-of-the-money puts for protection (which gets to be an expensive form of insurance).
central bankers gone wild series
https://www.youtube.com/watch?v=wTB6PRruE0A
Gona wait until the price drops on those self driving cars.Don t want to drive myself to the poor house
Mid to low 40's and the D-bomb goes off if the banks say so.
Ah, but they're manipulating a physical commodity that has limits to how far it can be manipulated. At some point, the banks can say whatever the fuck they like. It will be physics and geology calling the shots, much to their chagrin.
entertaining watching how vigorously the cocksucking MoneyChanger scum r defending the phony paper prices of Gold at 1200.00 and Silver at 16.00....always the last hour...
so obvious...
http://www.kitco.com/charts/livesilver.html
http://www.kitco.com/charts/livegold.html
All you have to do is look at gold miners to know where energy stocks are going. No point hanging around in ground zero.
gold miners should be telling you where gold is going
Support is at the level where we have price deflation on things like food. Once food prices fall to the level that the normal man can afford to go to the grocery store and buy enough to feed himself, then the Fed will have had enough and start buying up fwds like nobodys business. We cannot have plebs afford food, its unnatural.
About this time Obolarang gets out his putter in preparation for his next round.
some big player is certainly dead from this action and the bank(s) who loaned them the money on margin isn't coming to collect - probably a NY FED order to keep this turd afloat. that's unsustainable.
not just oil
CRB (commodity basket) keeps digging multi year lows
http://www.marketwatch.com/investing/index/CRB?countrycode=XX
We unequivocally crashed some folks' crude.
More than half of the petroleum extraction industry is unprofitable right now as we speak, but everything is fine. It is not that times have changed and oil is not elastic anymore. Enjoy the cheap gas prices at your fuel stations! Enjoy the expensive oil being sold at cheaper prices (which gives you a clue of how broken our financial system is)!
http://www.ft.com/intl/cms/s/0/51cc00ba-7f85-11e4-86ee-00144feabdc0.html
http://makewealthhistory.org/2014/12/16/break-even-points-for-oil-producers/
So every dumb ass that went long in the $50s got stopped out? Ha.
No opinion on oil, but on the overall equity carnage, it's worth noting the goddamn Russell is suspiciously performing MUCH better than its bigger index brethren, and has been exibiting a silly sideways 'picket fence' pattern on the 15m bars all day, currently sitting around the 20 DMA. If the RVX (and VIX) take a nosedive, we could be in for a post-Europe pop that could retrace 70% or more of the losses. On the other hand, true bears will want to see these paint-by-numbers machine-driven auto-ramps, which have embraced, and enveloped, RUT for 3+ yrs, have a notable failure, taking the quant shitheads down with the ship. Time for popcorn, and good finger dexterity for switching back and forth from the FA cup to these odd markets . . .
Saying gold will go to $500 is like saying oil will drop to $20. It could, but it would cause major supply problems. Don't expect it to stay there very long.
Gold is up on the day, and while oil got its price cut in half gold hasn't budged. That should tell you something.
Tells me you can't read a chart. Gold was $1350 in July when oil started dropping and it was nearly $1400 last spring. Looks to me like gold sucks too and it's up on the day because it was crushed as soon as the markets opened on Jan 2, right back down to $1170.
Apparently you don't pay much attention to gold and oil. When gold was at $500 in 2006 oil was at $60. Gold was a little too cheap and it came up some but the average is 12-13 bbl/oz. Better sell your gold now.
So - now i guess we know that all those years of oil at $70, $80 ... $100 ... $120 .... $130 ...
That was all due to Wall Street speculators and had nothing to do with the real economic value of oil.
Shut down "QE" and ther's no money for bankers to specualte in and bid up commodity prices.
exactly, gold back down to $300
Nice to see they let you use computers in Broadmoor nowadays.
Yet another incarnation of the Gully Foyle/bob_dabolina/Meth Man action team.
I had to log in to give you a +1 on pulling meth man out of the dust bins.
The banks, who rigged the oil futures, should pay us back the difference between $50 and $100 for the last 7 years.
oas puts, thank you!!
There is No Way that the big banks, big oil, and the oligarchs are going to let me pump $2.00 gas into my car this Fourth of July!
Wouldn't it be funny if it was actually Russia driving the price down?
I don't know why that occurred to me, but it did. Maybe because of all the high-fiving among Western powers at how 'We're KILLING the Russian economy!"
I got a sudden image of Putin cackling as he gives the order to crank it out..."C'mon! 40 dollars crashes the derivatives market!"
I mean, if Saudi can flood the market and affect prices, why not Russia? And they have little debt, and a lot of gold reserves, it seems they may be better able to tolerate low prices, maybe longer than WE can...
We plunged some folks.
They could sweeten the deal even more by offering a discount if you pay in roubles.
Not right now...No distractions from that price in DOLLARS as it gets sucked into the void.
They can do the ruble thing afterwards, like they're picking up the pieces...IF they really feel like sticking with the whole fiat-thing after that...personally, I'd give that some thought if I were them though.