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Brent Crude Spikes Above $61, Highest Since December
Having quietly tested the $52 level and brushed with green on the week overnight, crude traders have decided that a surprise European GDP beat is good enough to outweigh all the over-supply fears and pushed WTI to $53 (with Brent breaking above $61 - highest since 12/23).
WTI tops $53...
Brent spikes above $61 - highest since before Christmas...
Charts: Bloomberg
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Anyone else notice the S&P looks like it will test a new all time high close today?
All fixed.
Heart breaker for those expecting $30 oil. For those of us that have been buying oil related instruments yea us.
they haven't broken the vlad yet, so we're far from seeing this as over
Greece is fixed, Ukraine is fixed, Oil is fixed and the S&P is most definitely fixed.
Time to pop the bubbly.
Like a cat, like a cat, like something immobile, as in corruption.
A pull-back was inevitable after the recent cascade in the markets. I am not convinced that we won't see $30 to $20 oil. It may just take longer than people think.
This may, in essence, be a dead cat bounce. I don't see anything fundamentally supporting higher oil prices, short of a world war.
told ya.... they can't handle anylonger than march to low level, if they continued they would crash, they had to raise level back....
"I don't see anything fundamentally supporting higher oil prices"
If fundamentals don't matter in stocks, gold, high yield credit, treasuries, greek debt, hell all EU debt....... the list goes on and on, then why should crude be traded on fundamentals? Just asking.
Damn right Party - Fundamentals are for anyone with an opinion - Charts are for traders and don't lie and it's obvious the decline is over and prices have formed a base... BTFD
Fundamentals always matter in markets. Even if the market is papered over, eventually the fundamentals will rear their head.
Right now we are looking at a price war in oil between producers as governments scramble for cash to pay off the interest owned on their dollar denominated debts. In addition you have a "rogue party" (in the form of ISIS) flooding the markets to fund a war, sanctions on Russia and shrinking global trade, increasing deflation blowing up debt everywhere and sending nations and companies into bankruptcy.
I reiterate, nothing fundamentally supports the "higher oil" thesis, aside from the plunge in prices consolidating market share further amongst the biggest players. I'm not convinced that the consolidating market share has gone far enough yet.
Most people do not make the link between oil prices and government tax revenues in oil producing nations. So could we see $300 a barrel this time next year? It's possible. Do I think it will happen? No. This looks (to me at least) like a bull trap whereby oil is retracing some of its losses after taking a serious hit, but there may yet be a final leg down. Especially when denominated in dollar terms. It will be curious to see though.
Don't take my advice for it if you guys are taking open positions. I wish you all the luck in the world in profit taking, if that is the case, at least one of us is making bank.
Sometimes just technicals. Above looks like island reversal and inverse H&S.
Plenty of doods have been saying that oil will have a "3" handle...but it will hit the $60s again first. The highly unusal "W" shaped recovery for oil prices.
http://homment.com/falseflag4
I was so busy doing homework I didn't get a chance to BTFD. Looks like today will be a doozy. Mostly positive articles out on ZH. Damn
vitol big buyer
Any 'Half price' sale always brings in the suckers. Beware !
Guess they could not let those Energy stocks get to beat up. Sure did not care about mining stocks
The entire January decline was undone in four days. What is really funny is I paid more for gas yesterday than I did in the first week of October when oil was trading at $75.
I'm sure that makes sense to a commodity trader somewhere.
With certainty we'll get to a situation where we will be paying $3.00 a gallon at $60 oil. When oil dropped to $80 two years ago I paid $2.25 for gasoline. Exactly the same as this past October. The gas stations near me are now at $2.45. $100 oil used to mean gasoline at $2.85ish. Now $100 oil means gas near $4.
There is no longer any correlation between the price of a barrel of oil and RBOB. You pay whatever Goldman Sachs wants the price to be regardless of fundamentals.
Ultimately the price is determined by what the market will pay, not by what it costs to produce plus markups.
There is no actual working price competition on the macro scale even though there are many different companies and countries involved. While two gas stations across the road from each other may engage in the occasional gas war and the price at the pump may plunge because spot crude has dropped, what most don't discuss is much of the global oil consumed on a daily basis is secured through long term contracts at fixed prices regardless of the spot price.
Spot price only comes into play when those long term contracts come due for renewal. Granted there is a market for spot and when spot drops profits drop as well. But...........has anyone noticed that oil company revenues have not been slashed in half over the last quarter even though spot has dropped by half?
If spot were to stay down here for 6 months or a year, then it might be time to hit the panic button. But there is more to profits than spot price at any moment.
That is how it is supposed to work, but the retail cost of gasoline never declined anywhere close to the point spot oil was trading at. However the price skyrocketed at gas stations over the past few weeks even though oil continued to decline throughout the entire contract period for February. Some would say gas stations are hiking prices to make profit before higher priced gasoline comes in for delivery.
I don't know about where you live but around me there almost no independent stations left. They are all corporate owned and you'll have 100 stations raise prices within ten minutes of each other.
Global demand is down and the retail price of gasoline is higher than it was when oil was trading 30% higher. It just doesn't make any sense. Sure there is the excuse of the refinery strikes, but gas that shows up at a station was produced months ago and there is more than enough extra supply to make up for any potential shortage coming from a drop in production.
Like I said.....
Ultimately the price is determined by what the market will pay, not by what it costs to produce plus markups.
When I said 'price' I was talking about the price of gas at the pump and not the spot price of crude.
If you can pay (and you must have gasoline in order to carry on with your 'normal' everyday life) you will pay it. What choice do you have?
I'm sure it's because the "additives" are more expensive now.
Well, I guess here in Canada we'll be paying well over $5 again to fill up. Oh, but they charge by the 'liter' so nobody notices. And since nobody can do simple math.....
I really wish that traders piling into commodities for no good reason did not effect my costs at the gas pump and the grocery store. If they were trading off of fundamentals it would be different. But I get pissed when their market churning costs me money.
Sorry!
Then it's Time for Gold to get moving !!
Not cold enough yet.
LOL, that's funny
Time for a Saudi newsbite.
So now shorts join longs in getting stopped out. Good luck trading haha.
Youd think the belief that Russian sanctions may be rolled back, with more oil on the market, would drive the prices lower. RUBUSD is up 2%, what gives?
The un-feds "free" bucks got to go somewhere...Hi-Ho DOW away! They have not yet begun to print! It is all good even if it isn't. It is all about preception.
Look for the energy moves of the psychopathic elites collaberating.....that's where the money's at!
Germany’s Siemens To Create Smart Grid For Russia’s Bashkir Power Grid Company (BESK)
U.S. Martin Engineering Opens New Division in Moscow
BP Profit Rise Due To It’s Ownership In Russia’s Rosneft
U.S. DoE Helping China Build a Molten-salt Nuclear Reactor
Texas-based Schlumberger Buys 45% Stake In Russian Oil Driller
General Electric’s China Technology Center Highlights U.S. Chinese Collaberation
Russia Approves $2.3B For Finnish Nuclear Power Plant
ExxonMobil Joint Venture With Russia’s Rosneft Begins Production Offshore Russia
Russia finally got the "memo" from Goldman Sachs,the Ukraine to be "liberated" by April,with a pre announcement given exclusively to GS in March,oil back to $100 by June
Gas prices moving ahead of oil....just wait till the monopolizing game is completed!
Energy Company’s Consolidate…….Oil Price Cut Working
"The three R's of oil drilling .... Rocation, Rocation, Rocation !" .... Nippon Hydrocarbon Resources
The move up began the monday after Russia and Saudi Arabia met in Norway. Just a coincidence??
Some more evidence of the completete and utter disconnect between the real economy and the (commodity, equity) markets.
Peak oil, bitches.
I must admit, for now, drillers gotta drill. Bakken added 200+ producing wells in December after two slower months.
https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
just invested in some cattle futures here. One red and one black angus steer as well as a holstein steer. 400 lbs now and 1300 a year from now. Beef, its whats for dinner. Corn being below 4 bucks a bushel will be a help in the fattening process. Gas here has bumed 36 cents in 10 days. 2.39 for unleaded now. I saw gas in Indiana on a return trip home for 1.88 a gallon the week before Christmas. Never broke below the 2 dollar mark here in burbs of Obamaville shitcago.
well, it looks like ZH was wrong...
"surprise European GDP" ... that was slick