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Oil Enters Correction A Day After It Enters Bull Market
Well that escalated quickly...
From $43.58 to $54.24 to $47.95...
Explaining why.
Oil is down because rigs are being opened because oil was up because rigs were being closed
— zerohedge (@zerohedge) February 4, 2015
Joking aside, this is all that matters, as explained yesterday:
For those who want to know when to buy oil, the answer is simple: just after (or ideally before) Putin announces he will no longer support the Assad regime. If, that is, he ever does because that act will effectively destroy all leverage Putin may ever have over Europe, and in the process, also end - quite prematurely - his career. Until then, every single HFT-induced spike in oil is one to be ultimately faded, because as the past few months have shown, it is the Saudis who set the price, and they will not take no for an answer, even if it means crippling the entire US shale, and energy, industry in the process.
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oops, that is going to hurt.... I am stil waiting for $30/bbl
The cure for low prices is low prices...
The cure for high prices is high prices...
I suspect Gartman's flip-flopping was behind these moves.
[volatility much?]
Short oil... Long oi... Nope, wait for it!... Short o... No, no, no! I'm long again... Or am I????
All the squirting farts on CNBC said to buy yesterday but now it's profit taking. Huh? What profit do they see?
It's so Crude, Supply and Demand, heh.
Thank you Adam Smith.
Cramer's smelling bottoms again ?
3pm buy fest!
That's right, and low prices are good for the economy and low prices are good for the economy.
DavidC
The fact you repeated yourself makes me believe you. Well played, sir.
All Hail Chumba
Efficiency, defined.
I was against oil before I was for it
"I was against oil before I was for it"
Thats just because you have oil privilege,,,,
I am Paris Hilton's brother. You are not.
Glad I closed my position on USO yesterday. Knew this was coming.
You obviously have been reading way too much ZH.
Yeah, glad I sold everything yesterday also, but when oil goes down to 45 I’m going back in
44-45 sounds good, hoping for sub 40 ;)
Still holding on to that $50 silver?
Too bad you didnt post that sale yesterday. Then I might have believed you, On second thought all you did was reduce your loss.
How long until we see $43 again?
By Friday, but it might test 40.00.
That would be a popcorn moment :)
noticed gas popped 20c/gal. that was quick, now back down, ha-10c down a week latter. fucking joke...just like reganomics, trickle down to the plebs...
HEY FEDERALE DUDE...HOW IS THIS POSSIBLE???!!!
Me an de homies be LONG delivery, SHORT product now down at Mean Fred's Gasoplex!
I mean seriously....if you were long oil when Putin "took Kiev by taking Crimea instead" YOU ARE STILL A MORON.
NOW WATCH THESE PRICES DROP TO A DOLLAR A BARREL.
Now that volatility seems to be back, watching the official MSM narratives is going to be quality entertainment. Maybe Cramer will have another meltdown like he did back before Lehman and have a heart attack.
THEY KNOW NOTHING!!!!!
Turn the ship !
Turn the ship !
Full reverse ! (we need more Gartman mirror's for Cramer's office)
Shoals dead ahead !
(as they waive to the greeters at the shoreline)
Amazing how they sometimes seem to be able to mess up even their very own playgrounds. This assuming they don't regard +10% one day -10% the other day as something thats a normal working state.
Maybe even more amazing how the media goes with it delivers the narratives. On Friday it was IS troop movements, yesterday it was something(?), today the complete opposite?
It's never the short covering from the trend pumping or HFT shenanigans.
Fooled you!!!
<iframe width="560" height="315" src="https://www.youtube.com/embed/tSnp6iC_QUc" frameborder="0" allowfullscreen></iframe>
They really missed the chance to vaporize more muppets here...
No matter which way oil goes it is bullish for the economy - or so they want us to believe.
Here's how we fix this. We all know we've reached peak oil, so we need to save as much as we can now. So, we need to invest in green engery. I was excited with all the new programs Obama started in 2009/2010. Sure, ther were a few bumps along the way, Solyndra. This would work well because we can increase spending whic hwould increase GDP. If we spend the time and money now on green engery, we can lessen the effects of oil price shocks. If we could somehow tax by the mile then we can save more money and lessen the dependance on oil. Governments have shown great tact when money flows in, and I'm sure they will use if for our benifit.
whats wev'e reached is peak bull shit. with tech being realeased where we can power vehicles from sea water to the 300 mile per gallon Volkeswagon cars ready to hit the market, i figure peak oil is just another ponzi name. the Sauds know whats coming and it ain't big oil wars that's for certain...
Peak oil is REAL. You sound like you might be a Climate Change denier too. You are a dinosaur and my hero Oprah is right, things will only get better when old white people start dying.
I think she means all white people.
I think she understand that these young "hipsters" are on board. They are great thinkers. I do really dislike the term hipsters, I think it's degrading. They are embarcing this UN and one world future. It's great to see.
Name a successful place run by non whites. I'll check back next week
It's takes time, geeez. They've been held down by us whites for thousands of years. We can't expect them to create a thriving society so fast. If we could just give them more money, in time, they will learn how to use it correctly. Give them a chance. What we need Obama to do is create a program where they can be integrated into white neighborhoods. That would really jumpstart things.
Singapore?
The city built on a giant human dung hill. Home of the $19 cup of coffee and 20 cane strikes for chewing gum? Nice try but, no.
Let me sum up your arguments: "They're different from us, so they're no good".
Very strong argument. I don't bloody think.
While I agree now, SIngapore's current government seems to be doing all they can to change that around. The current population of Singapore, an island, is about 3.5 - 4 million. The current PM wants that to increase to 6 million and SIngapore will still be an island. The housing density there is going to rival that of Hong Kong. I started going to Singapore in 2010. The people there were quite happy and I could easily get a seat on the MRT. Over the past 4+ years, people have gotten significantly less happy, as an influx of mainland China immigrants has occurred. Many of the food centers, one of Singapore's best features, have turned from Singapore/Malay food to northern Chinese food. Where once people dutifully lined up to get on MRT's or buses, the new immigrants seem to do the same things they did back in China, namely push and shove to the front of the line. Getting a seat on an MRT is pretty well imposssible now unless you get on at a terminal station. Housing costs are pretty much through the roof right now and increasing the population by 50% is going to just exacerbate that problem. Of course, that's the real reason they're doing this. Singapore's housing market is pretty much a Ponzi scheme, so unless you have a lot more people coming in at the base of the scheme, the whole thing is going to collapse. Population growth is defintely NOT going to lead to a growth in the quality of living. I give Singapore maybe five or six years more before it becomes a place that's not really worth visiting.
If you are not channeling MDB, your statement is even funnier!
I'm sure that 300 MPG Volkswagen is right around the corner, available at a dealer near you "soon".
Along with tractors and combines that run on good intentions.
Model S dude!
TWO YEARS AGO.
Bwhahahahaha. "Gasoline.". How 20th century....
Hitlery,
Bravo!
Really? (I was going to start with 'Seriously,?' but that's so yesterday...). Educate yourself, read Green Hell, by Steve Malloy. The whole green thing worked so well for Spain, um--not really. I'll bet you drive a Prius. Forward!
Join us in the 21st century. The most thing I am excited about are these new implantable chips. Those will make our lives so much easier. Also, I drive a Volt thank you very much. Best car ever made, thankfully those hateful conservatives didn't get thier way. GM is on the cutting edge and I am happy they are opening up sub-prime loans to the lower class so they can enjoy GM products as well.
Oil has never stayed so low for so long - FYFB - Fill your fucking boots !
define low
oil has been in the $25 to $30 range for the longest time end of last century
maybe the modern equilibrium is somewhere around $35 to $45
the rest was hyped up
Define low - In my lifetime...
Corrrection: "Bullshit market"
looks like getting the stooges to strike didn't quite have that "effect" they were looking for. perhaps some more BS from the house of Saud will do it, oops then again maybe not.
"Zees ees zee price stabeeleetee?"
This world is rigged. Period.
The world is a vampire.
I am Paris Hilton;s brother. You are not.
How long until the gas station pays me to fill up my tank,just like the Fed pays banks to borrow money?
It won't be long now...................
http://davidstockmanscontracorner.com/russias-economic-meltdown-intensif...
Stockman RULES!!!
Once again it isn’t reality that matters but the power of spin…….US production has basically held steady all month infact the past week actually DECLINED week to week……this is occurring before the effects of depletion will be felt moving forward……Hows do stocks rise when production decline with imports and refinery runs stay same? Where did stock come from air or the Fed printing press?
So the hard data is from Alaska which is declining year over year and every where else is an estimate based on a model? Thus the massive revisions that occur afterward……
Via EIA...EIA estimates weekly domestic crude oil production using a combination of short-term forecasts and the latest available production estimates from Alaska. Most of the uncertainty in the weekly estimate is associated with the STEO forecast for lower 48 and GOM production. For example, when lower 48 crude oil production is either increasing or decreasing rapidly, the accuracy of the estimate for any particular month is likely to be reduced.
You guys really haven't considered that we may be tapping the SPR to create the appearance of over supply? Seriously? We will do whatever necessary to obscure the root cause of all the problems, the financial asset ponzi. The way we, as individuals, solve this is to sell overextended financial assets each and every day to raise cash and buy gold. There are orders of magnitude more essentially fraudluent ponzi fractional reserve banking financial assets than real assets, so whatever mix you choose between cash and gold is certain to gain over the long haul. It is simply a central banking accounting identity...
Tyler you better start doing some real work here on these so called stats cause the EIA is rigging them to over estimate supply and under estimate demand
I don't doubt it, but how would you go about proving it?
If you got a nose that can smell a bottom, like Cramhole!
booga booga headlines are more important than analysis here these days.
All it takes is for a little event at the export terminals in SA and all the parasites would be exterminated rapidly... US is well positioned to withstand the shock and we could leave the Kingdom to fend for itself. The world would be a much safer and more stable place if we worked with Russia and China rather than Saudi Arabia...
"drill baby"
With this volatile price action, CNBC will have to work extra hard to pay attention in order to make sure to get the spin for why higher (wait, now lower) oil prices are good for you.
If they can't keep up they might lose all credibility.... OH WAIT!
FOX News: 911 Truthers caused this. Those wiley rascals are behind this. Fuck I hate FOX news. CNN too.
Everyone born to a Kenyan goatherd hates FOX.
Bear markets and bull markets switching handles in only minutes now! MOAR crazy pills, please!
ANYONE who could conclude crude oil had entered into a new bull market just because it rallied for a few days should have their brokers licenses revoked and/or should be booted from television. They are not worth the money you pay them or your brain power in listening to them. boneheads!
During all the 'bull oil' hysteria yesterday I said I bet it will be back around $43 by Friday....wish I'd actually bet on it! I haz no free monee though.
TeeVee - this is all because of TeeVee.
TeeVee controls the masses. Understand this. They put in an algo to spike oil, they tell the masses to buy buy buy, then they put an algo to sell off and take the money from those that are ignorant.
Kill TeeVee*
*Never happen, too many brain numbed, dumbed down, beer swilling, pot smoking, mcdonalds eating, chevy driving fools out there.
This makes any sort of planning.......................difficult.
we oiled some folks
Well, who in their right mind would buy oil higher at this time? Lower demand, higher supply and Fed is tightening. Not even to mention the foreign policy shenanigans to seek a confrontation with Russia.
Muppets are not in their right mind. There is no trend or wave to follow.
25 years of massive infrastructure projects and growth in China have now peaked.
That run was a unique anomaly in the history of the global economy and it appears we are now in reverse.
There is a glut of everything including unemployed and underemployed people with alot of time to waste. Consumers are in surviving mode, not in spending mode.
The price movement is caused by pent-up demand for growth in reduction of increasingly pessimistic projections in anticipated consumer confidence, expressed through fluctuating seasonally-adjusted appetite for risk tolerance linked to stabilizing market volatility.
Means nothing. Get back to me in 6 months. If oil is anywhere near $50 then, it will be only be because of global economy contraction, unless other political events require the banksters and their (literal) public servants to starve rival oil producing contries into submission. In which case they will do so. Domestic unrest of your enemy tends to distract them from being a threat to your political goals. Venezuela is so broke now, they don't even bother to spew their vitriol the US' way anymore. No oil money to buy the sheeple food, TP, or tampons seems to be an effective way to keep them distracted with pitchforks and torches at home. This is the inherent weakness of resource dependent exporting countries. Am I not informed regularly by ZH that the US producing sector is in imminent collapse? Seems to serve Saudi long term interest for that to occur. Oil prices have been shown since 1973 to be as much a political tool as subject to market forces. Oil is king at the present time. Not gold, not wheat, not FCOJ. Saudis are managing their position well. They are using the US and vice versa. Low prices serve both at the moment, but as soon as US enemies, Iran, Russia, ISIS (even Venezuela) are punished with less oil money, and the Saudi enemies are punished--Iran and the whole M.E. muslim extremists originally financed, ironically, with their petro dollars, then it will be in the cronies' interest to get the price back up. The problem is Russia. HIstory shows they will fight, even if they have to starve for the privilege doing it. The wounded bear is being put in a corner. The US sheeple like low gas prices too, unaware what means for the interconnected larger economy. It's imperative for the global banskters that the US is NOT energy independent. Domestic production must be limited but you first have to eliminate the competition, then you can jack the price. If we have enough oil, what would be the excuse for going to war all the time? Its all distractions, distractions.....