"There Is Moar Blood" WTI Crude Plunges Into The $40s

Tyler Durden's picture

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...




Unequivocally not good...



Energy stocks have ropundtripped to pre-Fed levels...


This is exactly what Jeff Gundlach feared.

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kliguy38's picture

don't worry .....we're in a steady recovery

cossack55's picture

Love it, love it, give me moar of it.

bovine-reuptake-inhibitor's picture
bovine-reuptake-inhibitor (not verified) cossack55 Jan 5, 2015 12:36 PM

hope the deflationists enjoy their 5 minutes in the spotlight...

jamochavez's picture

you ever take a look at iron ore and copper--a little longer than 5 minutes

The Limerick King's picture



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

CrimsonAvenger's picture

You are to words what William Banzai is to art. Brilliant.

rccalhoun's picture

not to be a bitch, but im showing low tick at 50.02

rccalhoun's picture

brent is indicating 50 should have been broken already


F-Tipp's picture

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."

WTFRLY's picture

Gonna need some more non-gmo popcorn for the economic collapse (or if you prefer to call it the start of World War 3)

Soul Glow's picture

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.

new game's picture

up! no blood on their hands just in the streets, ha...

Pareto's picture

+1 I hear your frustration.  Its like its SO WRONG that there actually isn't any point to a rebut.  Happy New Year HB

Pareto's picture

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!

wrs1's picture

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.

csmith's picture

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%.


svayambhu108's picture

The world needs some Banzai moderators

Uncle Remus's picture

You're a poet

we're glad to know it

bob_stl's picture

Not if you're an American citizen. In that case, you're heavily in debt through your governments borrowing.

Vylahkinnen's picture

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.

zuuma's picture

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!


Hitlery_4_Dictator's picture

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

zuuma's picture

"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.


Karlus's picture

You could also wait for a day when the rain stops and nail some puddles with people walking on the sidewalk too....

Hitlery_4_Dictator's picture

What I did was funny, what you are talking about is just mean.

sleigher's picture

It's ok, he was driving the Prius.

wrs1's picture

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.

Hitlery_4_Dictator's picture

Ouch, one of teh most expensive and unreliable vehicles ever to own. Yoiu better hope the Dow bounces back. lol

Seasmoke's picture

Psychological has Been Broken Thru !!!!!!!!

pods's picture

Once the psychological hymen is broke, they start whoring it up.


El Vaquero's picture

Once you pop, you can't stop!


(Until shale producers start to default on their debts and junk bonds get fuckered anyway.)

Hitlery_4_Dictator's picture

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

wrs1's picture

Really, what happens if gold is $500?  What are you going to do?  How do you know the financial paradigm is fake?  

disabledvet's picture

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...

deeply indebted's picture

"How do you know the financial paradigm is fake?"

Are you for real?

Hitlery_4_Dictator's picture

LOL I know rigth....anyone who actually uses thier brain, knows this shit is as fake as Pamala Anderson's tits 

fuu's picture

He's really thumping the $500 gold meme this morning. He doesn't seem to understand that just makes the stacks larger.

wrs1's picture

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?

fuu's picture

I'm not too concerned about not finding work, there is always someone willing to pay for mixing and mastering.

wrs1's picture

Do you spend their money or not? Do you breathe air or not?  How do you know air is not fake?

Hitlery_4_Dictator's picture

This comment makes no sense. 

Renewable Life's picture


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?

wrs1's picture

Why do you have money if all you care about is gold?