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Crude Crumbles To Fresh Lows: $43 Handle
Yet again this morning's "bounce" to $45 was heralded as maybe possibly could be the stability that markets are looking for. And once again it was not as WTI makes fresh cycle lows to a $43 handle.. and once again, energy stocks plunged back to energy credit's reality...
Another bounce, another new low... (breaking yesterday's $44.08 lows)
It would appear Silver and Crude are linked somehow - margin calls?
As Oil started to crack, so silver plunged on heavy volume...
Who could have seen this coming?
Charts: Bloomberg
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Wow, that was fast ZH!
Launch moar Space-X and useless missions to infinity and beyond to burn moar fuel!!
And crush every Volt and Prius and Tesla and Leaf and moped you see!
HAHAHAHA!! TAKE THAT YOU FRACKING BASTARDS!!
Fracking proves to be the worst business idea in the 21st Century so far. Too bad so many oil men thought it would last forever. They must have forgotten the second part to the phrase "Boom and...."
$35 heading to a port near you.
How soon before all excessive crude storage is full, and they (Oil Co.) start commandeering anything that floats to load with oil to stock up while prices are cheap?
$35-$32 and hold for a year, make sum fuckers bleed....the new Globalization.....everyone gets to drink it!!
I kind of feel bad for that cat...
How on earth can that paper silver/crude oil tie last? Surely some serious shit will break if that keeps up.
on the other hand, I've been saying that for the past three years. :(
Paper silver with a 14 handle? Let me go start my truck and make sure reverse works.
http://www.bizjournals.com/houston/blog/drilling-down/2015/01/conocophil...
... and yet consumer confidence is highest in how many years ?!
"oil" "price". com isn't posting enough to defend the $45 price of oil!!!!!! object failure on their part
It’s NOT FAIR !
People aren’t being
optimistic enough … they’re intentionally trying to make Obama fail!
Fracking is DONE. I'm telling you it's DONE. This is the beginning of an environemental revolution - we are taking this country back from the corporations once and for all. Coal and natural gas - you better watch out because you're next. We won't stop untill every one of these motherfuckers is destroyed.
OK... What have you done with the REAL MDB!?
No one ever cared about the environment. You think hippies drive less to boycott the oil industry? No, they drive less when prices are high. People rarely take real stances on morality, they alsways take a stance economically.
People rarely take real stances on morality, unless it is over someone else.
Again... What have you done with the REAL MDB!?
Does the real MDB have an Underscore after the name?
Yes.
holy shit, for once I can at least sort of agree with you.
This is the dumbest thing I have ever seen on the internet.
It's satire. It's what MDB does (and always has). Give it some time, it'll grow on you.
And I guarantee you have seen dumber stuff than this on the internet at some point.
He's a noob. Hey noob? Why not STFU and read for another month or two to get the idea?
Good talk.
hahaha. another internet tough guy proud of his accomplishments of not having a life and annonomously commneting on message board! wow your parents must be so proud of you.
Get a fucking life
Good Talk
Dear fellow Texan,
MDB is a gold medal troll and quite entertaining to boot.
Because of his long absences, I now give him a green arrow just for showing up more often lately.
Thanks! I dont really spend much time in the comment section of ZH. Just come to dispell the oil myths.
Cool, what about abiotic oil...
ZH is a market maker.
$40 oil could be just days away:
http://www.investing.com/commodities/crude-oil-advanced-chart
Better say $10.
Soon a barrel of oil will be cheaper than a pound of ground round. Too bad I can't eat oil.
But you do eat oil. Both from an energy standpoint and from a chemical feedstock standpoint, your food is derived from oil.
(Just don't expect food to get cheaper as fast as oil does.)
Not my beef! Local and grass-fed is the only way to go. I know people who live in million dollar houses and drive $100,000 cars who buy the cheapest food they can find. It is the oddest disconnect that I just can't understand.
Rich people don't want to pay for anything so that's why they are, well.......rich!
What do you think makes up the fertilizer that your grass-fed beef is eating?
Free
<- Any particular reason for silver to get hammered?
<- No, no reason at all... just the usual...
most commodities fall when the globe goes into recession.
$32 oil could be 5 minutes away! Look at these random lines I drew on a graph!
Silver could be getting hammered because it's a very useful metal in manufacturing. Shit economy => low silver demand.
Low deman? Only if you ignore India's purchasing the relic a the pace of 25% of global silver production....
Quadruple Evel Knievel formation! [that's twice today!]
Except for his last ride into heaven, Evel always landed back on solid ground....
'Landed' is a very broad and relative term.
There was that time that he almost went whitewater rafting in the Snake River...
That was the day that Gerald Ford pardoned Nixon FWIW
If Ford had not pardoned Nixon then Howard "Deep Throat" Hunt would have exposed Jerry Ford's involvement in the Warren Commission coverup...
Isn't dirt wonderful?
Of course nothing would have delighted David Rockefeller more than to have his borther Nelson as President...
Same as it ever was...same as it ever was.
I have to add JFK and other assassinations to my time line.
- 1972, Watergate Scandal, with ties to CIA
- 1973, Family Jewels Reports commissioned about CIA
- 1974, CIA Slapped with Investigations of Practices, they decide to Outsource & Subcontract (Church Committee, Nedzi Committee, Pike Committee)
- 1975, Rockefeller Commission to investigate CIA Activities within the USA
WTI to Brent spread was down under $1. It is now over $4. This is big banks front running their own calls on oil and oil stock downgrades.
Explain the spread please
WTI drops to $44 but Brent stays at $48.50 so the spread is $4.50 -- but last week WTI was at $47 and Brent was at $47.69 so the spread was 69 cents. WTI often refers to oil sold in the US, whereas Brent is the price of oil in Europe and often the rest of the world. It used to be that spread was as high as 20% (or $20 when oil was over $100). The tight spread usually implies more demand in the US (recovery?) and less in the rest of the world (no recovery?) But oil is being heavily manipulated now so it is hard to tell.
I wish they would stop haviung FED meetings...everytime they do G & S get wacked for no reason
That's been a pretty steady pattern. I think PMs will be under a little pressure for a while as two big catalysts went by without any effect -- the Grexit and the Fed meeting (which turned out unexpectedly hawkish). That said, the Grexit could be back at any time if Greece decides to default.
So crude has decoupled from price of SUPER BOWL TICKETS.
Wth supply surpluses still at very robust levels, oil is going into the thirties. Book it.
Supply and demand numbers are written by the same guys who use a Ouija board to determine other official government numbers.
I never claimed any of this made any sense whatsoever... ;)
Chances are also pretty good that oil will be $200/bbl within two or three years.
You are 100% correct on that. The lower oil goes, the less money on development is spent. If the Saudis fail to cut and then restart production soon enough it will be oil shox from hell for the next few years. Not my analysis, it's these guys:
http://www.prienga.com/blog/2015/1/20/supply-minus-demand-explained
In two or three years time what will a loaf of bread an an Eagle set me back?
BJ
I am offering free loaded nailguns to anti-hydrocarbon progressive criminals who are freaking out and need "help" as their dreams of crushing the poor people of the world evaporate....
Ha Ha FOAD progressive scum!
Grimaldus
Oil. Carbon. A basic form that IS a PART of this earth.
Plays within plays to set up future plays.
To what degree are the people going to realize that this is all a process to further the consolidation of the energy plays. Oil is just more then energy, it is in most things you touch.
Think that through.
Only one thing to say. Those people that are not completely owned by such players. "DO NOT SELL YOU ASSETS. BECAUSE YOUR ASSETS ARE A BIG PART OF THIS CURRENT PLAY ON THE PRICE OF OIL."
Pens,
Nothing criminal here, move along.
And now today boyz, gurlz, and bitchez, it's time for a game we haven't played in YEARS....
SELL EVERYTHING!
Even my gold lunars?
Obama loves this, it's killing all his political opponents, there's no such thing as an oil democrat. And this guy is all about destroying opponents, so that no matter how bad he and his ideas are no one can stand up to him.
+1000
Obama has nothing to do with this. C'mon guys... Try to keep up.
No such thing as an oil democrat, huh?
You believe in fairy tales, don't you?
Honest Question?
How many of you here commenting on oil actually know anything about the oil industry? Your comments prove you only know what you've read in some BS opinion article then you go around commenting like you know everything. The only thing this is doing is fllushing out the johhny come lately heavily indebted companies that jumped in the market at $100 per barrel because it damn near impossible to lose money at that price. Sorry MDB fracking isnt dead. I'll be opening up another well next week and making good money doing it.
Don't start with ad hom especially when you write like shit.
oh the irony... jackass.
your comment proves my point. you dont know shit about the industry. all you can do is talk shit.
I can't respond to something unless you state something other than your opinion. Is that all you have you fucking nit wit!
7 weeks jesbus fookin chroist a noob
oohhh got under your skin. I like it. And i did ask a question, you're just too busy trying to be quick witted and further prove you dont actually read anything you just type the first thing that comes to your ignorant mind. i will type it again for you. maybe all caps will help. WHAT KNOWLEDGE OR EXPERIENCE IN THE OIL INDUSTRY DO YOU ACTUALLY HAVE? DO YOU KNOW HOW MUCH IT COST TO DRILL A WELL? HOW ABOUT LEASES? ARE YOU AWARE THAT DRILLING COST HAVE COME DOWN SIGNIFICANTLY LATELY AS WELL MAKING WELLS ECONOMICALLY VIABLE? Please tell me you know something since you speak with such disdain for the industry. Go join the amish if you hate the industry so much.
you make fun of how long i've been commenting on a message board????!!!! BWWAAAHHHHAHHAAHH thank you i actually laughed out loud of how pathetic your life must be. you're acutually proud of making idiotic annonomous statments, and being an internet tough guy. i've seen it all. your comment tells me all i need to know about you.
BTW I agree that you can still make money in Shale and obama is trying to kill TX. I live outside of Austin and it's one the biggest shitholes I've ever been to. One of the unhappiest cities in america. Please succed from TX already. From a real Texan.
Where outside Austin? I grew up west of Austin in the Hill Country and cant get out of Dallas and back home fast enough.
trying to keep it a secret...I'd like all the fags and libs to stay in Travis County
AND ONE LAST THING TO ALL YOU DOWN VOTING ME AND HATING ON THE INDUSTRY.
YOU'RE ALL A BUNCH OF FVCKING HYPOCRITES!!!!!!!
DOWN VOTE ME ON YOUR COMPUTER, SITTING IN YOUR COMFORTABLE HOME OR OFFICE THAT YOU DROVE TO IN YOUR NICE CAR.
END OF DISCUSION
Just like I thought... crickets.... you haters dont know your ass from a hole in the ground.
Your moral and intellectual superiors aren't going deign a response when you are not even positing a substantive question.
That aside, there are plenty here who know plenty about the energy industry, but they are not necessarily the most prolific posters on energy related articles (see above).
That my be... but I know an ass when I see one.
Robo Trader is that you!!!!
Wait till your Mom finds out that you are back on ZH trolling..... she is going to whip your ass boy!
Silver and oil have always been linked. Always.
Gold too, except for a few short periods of "flight to safety"..... several other commodities track oil also.
Sometimes I think oil replaced Gold in the 1970, hence the name Petro Dollar.
Can anyone explain this to me. How can the indexs be green today, while everything else is red? We have had terrible numbers in every category going on at least 4 weeks. The FED has stated they will raise rates, which is very very bad for the market. Oil prices are down, job claims are up, war looks to be brewing in multiple arenas, pending home sales are down, BABA is down, Germany is in deflation, a new Greek government bent on leaving the Euro, homebuilders index is down, Mcdonalds sales are down...there is much more...somebody please explain???
Yes, much more....its super bowl weekend.
easily....these are not the droids you are looking for...move along
joyflation around the corner
For markets to work logically you have to have "price discovery".... with the bailouts, the removal of Glass Steagall and fed intervention, QE to infinity etc etc... risk is not perceived or priced by "investors" an essential disconnection from reality.
This works until it doesn't..... and then "humpty dumpty has a great fall... " I never thought TPTB could keep this rolling so long, it will be interesting to see what finally takes this down.
Hussman has a great chart where he shows historic 3 month T Bill rates and Monetary base/Nominal $ of GDP, the FEDS are going to have to contract the Monetary Base or Raise the Nominal $ of GDP to raise interest rates....... it will be interesting to see what happens. I believe the markets are signaling they do not believe she will indeed raise rates.
http://www.hussmanfunds.com/wmc/wmc130617.htm
I paid $1.95 a gallon just yesterday. Keep it coming. I need evey penny I can get so that I can use it to buy food, clothes, health insurance, home repairs, etc...
It's UP to 1.85 here (Dallas).
Paid 1.69 a couple weeks ago.
This keeps up, the oil companies are gonna start hiring Nigerian pirates to steal their oil. Hey roughnecks, I heard popeyes chicken was hiring.
Gotta speak spanish where I live to get those good jobs at popeyes.
Not sure about everyone else but I've got enough dry powder to average into oil as far down as it dares to go. When oil bottoms, it will do so quickly and rebound with such ferocity it will make your heads swim.....
Maybe... depends on Inventory and demand.... Right now excess production and inventory, price has been brought down by demand destruction, countries and people are tapped out. I don't see prices going anywhere in the near future except down, unless the new King of the House of Saud is taken down or something of that like. And then all hell is going to break lose.
Silkver is getting demolished for no reason....oil has been crushed a long time now, no reason for oil to suddenly plunge today....and the MARKETS are GREEN...makes me sick
Here's some good news, maybe all these assholes will go back to their home states after the oil business dries up here Mexas, I mean Texas.
From your lips to God's ears!
Does this mean all the Texans here in Oklahoma will go back home too?
You can only wish....... lol
Even if they do, the illegal invasion will still roll on.
They'll be paying you to fill up with gas soon. Want gas for your car? Here, take this 50 dollar bill and help yourself, we got no room left to store this shit. /s
http://www.project-syndicate.org/commentary/eurozone-needs-more-than-qe-by-martin-feldstein-2015-01
First, though, consider why QE’s ability to stimulate growth and employment in the US does not imply that it will succeed in the eurozone. QE’s effect on demand in the US reflected the financial-market conditions that prevailed when the Federal Reserve began its large-scale asset purchases in 2008. At that time, the interest rate on ten-year Treasury bonds was close to 4%. The Fed’s aggressive program of bond-buying and its commitment to keep short-term interest rates low for a prolonged period drove the long-term rate down to about 1.5%.
The sharp fall in long-term rates induced investors to buy equities, driving up share prices. Low mortgage interest rates also spurred a recovery in house prices. In 2013, the broad Standard and Poor’s index of equity prices rose by 30%. The combination of higher equity and house prices raised households’ net worth in 2013 by $10 trillion, equivalent to about 60% of that year’s GDP.
That, in turn, led to a rise in consumer spending, prompting businesses to increase production and hiring, which meant more incomes and therefore even more consumer spending. As a result, real (inflation-adjusted) GDP growth accelerated to 4% in the second half of 2013. After a weather-related pause in the first quarter of 2014, GDP continued to grow at an annual rate of more than 4%.
Thus, QE’s success in the US reflected the Fed’s ability to drive down long-term interest rates. In contrast, long-term interest rates in the eurozone are already extremely low, with ten-year bond rates at about 50 basis points in Germany and France and only 150 basis points in Italy and Spain.
So the key mechanism that worked in the US will not work in the eurozone. Driving down the euro’s dollar exchange rate from its $1.15 level (where it was before the adoption of QE) to parity or even lower will help, but it probably will not be enough.
and teh dow is up .47% on such great news
If you go to FRED and pull up the long term prices (1970 to current) you will see that for the most part, Gold, Silver and Oil pretty much track (except short periods of "flights to safety"). Use WTI data from 1986 forward and discontinued WTI series 1946 to 2013. The silver data is a little more challenging to pull up but you get the drift...
http://research.stlouisfed.org