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Crude Oil Prices Are Spiking Into Close/OPEX

Tyler Durden's picture




 

WTI Crude futures are up almost 6%, spiking above $48.50 into the close and options expiration... no fundamental catalyst for now... Once again, crude futures have been 'spoofed' all day so this is hardly a surprise.

Back into the green on the week...

 

As futures are ramped into the close/OPEX...

 

and as goes oil so goes everything else...

 

as once again we see the machines hard at work "spoofing"...

 

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Wed, 01/14/2015 - 15:36 | 5661379 Tsar Pointless
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Efficiency, bitchez.

Wed, 01/14/2015 - 15:37 | 5661402 free_as_in_beer
free_as_in_beer's picture

squeeze

Wed, 01/14/2015 - 15:42 | 5661414 El Vaquero
El Vaquero's picture

RAMPA-LAMPA-DING-DONG!

 

 

 

 

(Hey, at least it doesn't sound as immature and dumb as the markets are fake.)

Wed, 01/14/2015 - 15:44 | 5661448 ACP
ACP's picture

Cost buku dorrahs just to hit the $48 stops.

Wed, 01/14/2015 - 15:51 | 5661478 viahj
viahj's picture

PPT working furiously

Wed, 01/14/2015 - 15:59 | 5661521 flacon
flacon's picture

My wife told me to go take my red gasoline canister to the fuel station and fill it up before the prices go back up. She doesn't trade and has very little interest in the markets - so if that's what she is thinking, then it could be that others are thinking the same thing. 

Wed, 01/14/2015 - 16:11 | 5661576 TheMeatTrapper
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I use military surplus steel jerry cans and rotate my stock twice a year. I put an ounce of PRI-G fuel stabilizer in each can ( I like PRI-G better than StabBil) before fueling.

The price here is below $2, so it was time to rotate the entire stock for sure. With all the EPA mandated crap in gasoline these days - make sure you use a stabilizer for long term storage, and even then rotate regularly.

Wed, 01/14/2015 - 16:18 | 5661608 Barnaby
Barnaby's picture

I have a big tank called "investments," and whenever I need fuel I take a portion of the disbursements and go to the fuel store.

The investments always seem to be bigger, and safer than any fuel container I can imagine ...

Wed, 01/14/2015 - 16:31 | 5661650 flacon
flacon's picture

Fuel containers can't be re-hypothecated though, so that may make them safer than any "investment".

Wed, 01/14/2015 - 16:39 | 5661688 Barnaby
Barnaby's picture

What if 25% of my worth is in Large Fuel Container Corp, Inc.?

Wed, 01/14/2015 - 16:45 | 5661719 flacon
flacon's picture

Then I would buy a plane ticket to China and inspect their warehouse to make sure that it's not just a PO BOX. 

Wed, 01/14/2015 - 19:46 | 5662518 Publicus
Publicus's picture

Using recent Zerohedge logic, this must mean that the good times are coming back.

Wed, 01/14/2015 - 16:16 | 5661598 GoinFawr
GoinFawr's picture

"Yeah I make a lot of money. I don't know if you know anything about the stock market, baby, but if you do you'll appreciate this: I bought cardboard when it was 14 cents a tonne; it's up to 16 cents now. And I bought 3 tonnes of it so that's... uh, um, let's see... well, you  figure it out. Also, I got this special deal where I only have to keep two tonnes of it at my house." Steve Martin

Wed, 01/14/2015 - 15:52 | 5661480 whotookmyalias
whotookmyalias's picture

Looking good. Buy, buy!!!!

Wed, 01/14/2015 - 17:31 | 5661944 Fidel Sarcastro
Fidel Sarcastro's picture

One of the best $$$ moves I've ever traded. #VPIN bitches. 

Wed, 01/14/2015 - 15:52 | 5661492 casey13
casey13's picture

With the drastic moves over the last month it is very likely someone big is already insolvent. It just has not been anounced yet.

Wed, 01/14/2015 - 16:03 | 5661546 DetectiveStern
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It's all intraday with this bullshit going on.

Wed, 01/14/2015 - 16:14 | 5661584 Bernoulli
Bernoulli's picture

And with such drastic moves in equities, bonds, forex and commodities every fucking day, those who are not yet insolvent, will be soon. Just imagine how some genius "investors" jumping on the short WTI bandwagon yesterday got squeezed today...

Blood in the streets. "Casino endgame".

Wed, 01/14/2015 - 15:55 | 5661497 kaiserhoff
kaiserhoff's picture

If I were short oil at the close I would be boucoup pissed.

Long arbitrations at the CME.

Wed, 01/14/2015 - 16:02 | 5661535 flacon
flacon's picture

'thing is.... right - only idiots expect honest markets. I am guessing that over the next few days we will continue to see a short squeeze. Stocks opex is this Friday. 

Wed, 01/14/2015 - 15:35 | 5661380 El Oregonian
El Oregonian's picture

Thar she BLOWS!!!

Wed, 01/14/2015 - 15:38 | 5661382 knukles
knukles's picture

Oh, somebody fuckin' with the close for options expirations or sumptin'?
Whazzamatta?  Somebody's writ some far outa da monies a while agos gettin'da fuck all squeezed?
Dat can hurt.  I know.  Been dere dundat

Wed, 01/14/2015 - 15:38 | 5661393 astoriajoe
astoriajoe's picture

inconceivable

Wed, 01/14/2015 - 15:58 | 5661520 El Vaquero
El Vaquero's picture

You keep on using that word.  I do not think it means what you think it means.

Wed, 01/14/2015 - 15:35 | 5661384 kaiserhoff
kaiserhoff's picture

Algos gone wild.

So much for price discovery.

Wed, 01/14/2015 - 15:49 | 5661462 EscapeKey
EscapeKey's picture

Algos with low self-esteem.

Wed, 01/14/2015 - 15:37 | 5661392 Dr. Engali
Dr. Engali's picture

Shorts taking last minute profits.

Wed, 01/14/2015 - 15:42 | 5661432 Yen Cross
Yen Cross's picture

 I agree. That's short covering, not new buying.

Wed, 01/14/2015 - 15:50 | 5661470 Barnaby
Barnaby's picture

Which dickheads have the margin? It'd be nice to put a serious case of crotch-rot on their ugly faces.

Wed, 01/14/2015 - 16:09 | 5661571 Yen Cross
Yen Cross's picture

 That was a pretty big spike, so I'm sure a lot of limit-up "sell" orders were hit and stopped out on the way up. Oil is so oversold I'm sure traders are keeping a tight lid on their exposure. (tight stops) That probably exacerbated the move as those stops were hit.

 

Wed, 01/14/2015 - 15:45 | 5661441 NoWayJose
NoWayJose's picture

Yup.  But they have to do it so fast - otherwise the little guy might make a few bucks in the market  You could almost predict this when Goldman trashes oil Monday, then trashes it even more today.  Don't be surprised if Goldman announces that the glut is over and they see $75 oil in the next few days.

Wed, 01/14/2015 - 15:37 | 5661394 Arius
Arius's picture

response to the russian move?

Wed, 01/14/2015 - 15:38 | 5661395 FieldingMellish
FieldingMellish's picture

Can't see the spoofing for the p0rn.

Wed, 01/14/2015 - 15:39 | 5661399 Black Forest
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Physical demand rose by 6 per cent in the very last minutes. It's so simple!

Wed, 01/14/2015 - 15:40 | 5661408 Eternal Complainer
Eternal Complainer's picture

Oh... I see

Wed, 01/14/2015 - 15:37 | 5661400 Eternal Complainer
Eternal Complainer's picture

Somebody needs to just shoot this sick puppy.

They actually believe they have credibilty with this shit?

Wed, 01/14/2015 - 15:37 | 5661401 buzzsaw99
buzzsaw99's picture

algos spoofed in merc's hair, her underwear, everywhere

Wed, 01/14/2015 - 15:44 | 5661437 firstdivision
firstdivision's picture

Damn K-Hen is trying to push this shit green going full-retard.  Pound VIX, pound long bonds, pound metals

Wed, 01/14/2015 - 18:36 | 5662227 MrButtoMcFarty
MrButtoMcFarty's picture

The cocaine hangovers from the weekends take awhile to recover from....thus the Wed/Thurs monkeyhammering....then Friday is here again!

Wed, 01/14/2015 - 15:44 | 5661438 Bell's 2 hearted
Bell's 2 hearted's picture

pipeline GS ordered to blow up in 3 ... 2 ...

Wed, 01/14/2015 - 15:48 | 5661447 Der Wille Zur Macht
Der Wille Zur Macht's picture

Can somebody explain what is meant by "spoofed"? (serious question)

Wed, 01/14/2015 - 15:51 | 5661473 NoWayJose
NoWayJose's picture

The generation of many orders just above or below the current prices, such that they influence the price to go up (or down) -- but they get withdrawn quickly such that they never get filled.

Wed, 01/14/2015 - 15:57 | 5661510 robertocarlos
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They could go to jail for spoofing.

Wed, 01/14/2015 - 15:58 | 5661525 buzzsaw99
buzzsaw99's picture

that very much depends upon who "they" are

Wed, 01/14/2015 - 16:16 | 5661596 crazybob369
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Not to worry, Maxine "this will cost the U.S. 170,000,000 jobs" Watters is on the case. She just chastised some HFT traders for spoofing. I'm sure she will soon launch a fool spoofing investigation into this oil pricing thing.

Wed, 01/14/2015 - 16:18 | 5661604 buzzsaw99
buzzsaw99's picture

the sec already declared these ten to be above reproach:

http://www.zerohedge.com/news/2014-07-18/these-are-10-liquidity-providin...

and we all know citadel is HIGHLY connected so scratch them off the list too.

Wed, 01/14/2015 - 16:52 | 5661759 Der Wille Zur Macht
Der Wille Zur Macht's picture

Thank you NoWayJose.

Wed, 01/14/2015 - 15:55 | 5661507 buzzsaw99
buzzsaw99's picture

the generation of many orders that are entered and withdrawn very quickly so as not to be filled. it mimics actual trading and may induce other programs to buy or sell whatever the spoofers have going. it is also used to slow down the system enough to give the co-located servers an edge.

Wed, 01/14/2015 - 16:12 | 5661579 disabledvet
disabledvet's picture

The difference between statistics and actual money.

 

"Looks like a trade, acts like a trade".... The goal is to attract real money though.  Of course this is the oil market...not " chicken futures."

Wed, 01/14/2015 - 17:07 | 5661841 Der Wille Zur Macht
Der Wille Zur Macht's picture

Thanks.

Wed, 01/14/2015 - 15:47 | 5661454 constantine
constantine's picture

Crash in oil prices has become absurd.  Probably some short covering... and, more importantly, FED just stated that oil is 'hurting the economy'; i.e., hurting the QE welfare profits (stock prices) of the elites.  I would expect a persistent rally in the oil price, at this point... not that I'm placing any bets.  

Wed, 01/14/2015 - 15:51 | 5661484 Money Boo Boo
Money Boo Boo's picture

a fight to keep the bottom well above $40, if this goes 30's the weeping will be strenuous

Wed, 01/14/2015 - 19:20 | 5662395 Chad_the_short_...
Chad_the_short_seller's picture

Wasn't oil in 40's back on 07 or 08 BEFORE the market crashed and rose significantly while the markets crashed. Same thing going on here, yes? This really does look like it's 07-09 all over again but soooooooo much more meat on the bones for shorting equities.

Wed, 01/14/2015 - 15:47 | 5661460 NoWayJose
NoWayJose's picture

Two VERY REAL possibilities - one is LONG LIVE THE KING with a new King in Saudi Arabia, and the other is that the Saudis have recognized how foolish this game is for themselves and are getting ready to call it off.  All they are doing is pumping out more and more of their own oil and selling it at half price.  Of course - Goldman changing their mind and going long would also do the trick.

Wed, 01/14/2015 - 15:57 | 5661516 NoWayJose
NoWayJose's picture

90 year old King Abdullah has been in the hospital with pneumonia, and did not give their version of the state of the union speech. Also, several (as in more than one) Saudi Prince/Minister are publicly questioning the oil strategy.

Wed, 01/14/2015 - 16:42 | 5661710 arby63
arby63's picture

How can they sell it at "half price" if they don't even know the real price? None of us know the real price because oil has been financialized to the detriment of those who use it the most. 

The price of oil/gas is basically unknown because it's traded like playing cards. 

Wed, 01/14/2015 - 18:30 | 5662202 Go Boom
Go Boom's picture

Theory:

 

Saudis know Addullahs death is gonna cause problems:

 

http://hikinghubbertspeak.blogspot.com/2015/01/paging-sarah-t-hughesyour...

Wed, 01/14/2015 - 15:51 | 5661471 Kreditanstalt
Kreditanstalt's picture

Pump, pump, pump that stock bubble...liftathon in progress!

Wed, 01/14/2015 - 15:52 | 5661482 Barnaby
Barnaby's picture

Je suis petrol

Wed, 01/14/2015 - 15:53 | 5661485 wmbz
wmbz's picture

Pheeew! Bout time for a turn around, now we can get back to $100.00 where it belongs!

Problem solved! Turn the truck around, back to work frackers!

Wed, 01/14/2015 - 15:53 | 5661490 Eternal Complainer
Eternal Complainer's picture

OT

I think Jamie Dimon should just go and hang himself tonight

Wed, 01/14/2015 - 16:00 | 5661531 cossack55
cossack55's picture

That stated desire is never OT.  Also applies to all politicians, Yellen, Krugman, Bernanke, Blankfein, ad.infin.

Wed, 01/14/2015 - 16:12 | 5661495 MATA HAIRY
MATA HAIRY's picture

YELLEN 

Wed, 01/14/2015 - 15:54 | 5661499 robertocarlos
robertocarlos's picture

That's unpossible!

Wed, 01/14/2015 - 15:54 | 5661500 NoWayJose
NoWayJose's picture

OIH and XLE and most of its components are still down quite a bit -- this spike is not real unless those rebound too.

Wed, 01/14/2015 - 15:57 | 5661513 Kreditanstalt
Kreditanstalt's picture

What?  It's stopped?  They didn't make green??  

Oh nooooooo, Bill....!!!!

Wed, 01/14/2015 - 16:00 | 5661536 Bernoulli
Bernoulli's picture

Makes total sense.

We spiked some barrels.

Wed, 01/14/2015 - 16:17 | 5661595 disabledvet
disabledvet's picture

Markets can crash.

 

Why would an oil company hedge?  Is there less oil coming out of the ground?

Wed, 01/14/2015 - 16:44 | 5661716 nector_collecter
nector_collecter's picture

Why would an oil company hedge?

 

To lock in a realistic price, ,some oil copanies knew oil was overvalued at $100+, SO THEY LOCKED IN FUTURE PRICE AT $90

Wed, 01/14/2015 - 16:21 | 5661621 madcows
madcows's picture

I say the indexes go green by the end of the day.  only 177 to go... half way there, and we haven't even had the 3:30 ramp.

Wed, 01/14/2015 - 16:33 | 5661657 mtndds
mtndds's picture

I knew this would happen!!  Too predictable. 

Wed, 01/14/2015 - 16:33 | 5661665 John McCloy
John McCloy's picture

Oil 50 bucks of highs...S&P barely 50 off the highs....
All the hallmarks of a fixed centrally planned market with a PERPETUAL upside bias going on 5 years...now that everyone knows the Fed and Central Banks buy futures you would think that would crumble market...hasn't..
All shorts expect sodomy at this point..and all Bulls feel immune because of this known fact...recipe for eventuality breaking a lot of hearts be it next month or 7 years from now.

Wed, 01/14/2015 - 16:39 | 5661697 arby63
arby63's picture

Catalyst = Obama told Yellen to get to work.

Wed, 01/14/2015 - 16:57 | 5661776 FreeNewEnergy
FreeNewEnergy's picture

I bought six gallons of gas around 2:00 ET. That had to be it.

Wed, 01/14/2015 - 17:20 | 5661821 papaswamp
papaswamp's picture

Option exp.... Nothing more. Most likely slump back down by tomorrow..
Feb 2015 LOG15 24 Nov 2009 14 Jan 2015 14 Jan 2015

LOH15 expires on the 17th of Feb so look for similar action ( and play it).

Wed, 01/14/2015 - 17:14 | 5661877 Downtoolong
Downtoolong's picture

I’m waiting for Prince Ali bin Allthetimesmokinweed to come back and tell Maria Bartiromo this was due to a sudden demand surge….you know, all those consumers who didn’t spend in December because they wanted ten tanks of gas instead of a new iPad are now taking advantage of the after Christmas sale in oil…..or some such bullshit.

Wed, 01/14/2015 - 18:23 | 5662174 The Shape
The Shape's picture

3,2,1 before more Saudi jawboing.

Wed, 01/14/2015 - 18:41 | 5662245 Chad_the_short_...
Chad_the_short_seller's picture

I have had the number of $45 being the bottom, just a guess of where it will fall to before turning and today's impressive pop, I bought some UCO at $8.19. I'd love to see a nice pop in oil.

Wed, 01/14/2015 - 18:47 | 5662255 SuperRay
SuperRay's picture

In the new age (the age after the hollow men) there will be no futures trading and no 'financial instruments' allowed.  Anyone who tries to create a new one (a la Milken and Bosce (sp)) will be hung from a light pole on Wall and Broadway...

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