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WTI Crude Slumps To $50 Handle On Larger-Than-Expected Inventory Build
API released its crude oil inventory data to subscribers and it printed an enormous 14.3 million barrel build (EIA tomorrow forecast at 3 million barrel build). This has sparked further weakness in WTI (not helped by refinery strikes, refinery fires, and storage capacities), pushing it to a $50 handle...
WTI back with a $50 handle...
Breaking below yesterday's V-Shaped recovery lows...
One word - Stabiliteee.....
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Looks like someone got an early release around 8am. Fuckers.
Nothing much is moving from the Mid Atlantic up through New England, and it's snowing hard outside my window right now,
so yes, inventory of gas and oil is still building.
Took day off and Mrs K for a long ride thorough the countryside today. Got back and looking at the world, all I can say is "Why, everything's fixed, hunkie dunkie dorrie and rainbow unicorn shits!"
PS Beware the Maunder Minimum.
you short on blue pills or something ?
Knuckles -- weed, reggae, pizza-pie, stretched out on a california beach -- the world is fine! Wait -- Geopolitical and Economic issues abound? Great scott! What shall I do? I want to take the blue and red pill at the same time!
Xom needs to blow up the rest of their refineries
Why oil has gone up, uninformed, dumb money thinking they're catching the knife.
Why oil goes down..hard, cold, facts.
Bulls are clueless.
WTI approaching $49 handle !
Any idea when the shale oil hedges blow up?
Well yesterday all the projects were back on after being off on Monday. Now they are all off again, but will be back tomorrow when the price spikes another $4 for no reason.
What do you mean real business doesn't work that way and is planned years in advance? The stock market says business conditions change on a dime, sometimes 100 times a second.
Hell, even Trump's hair doesn't flop that much (speaking of long-term production).
Give it another 6 months for some action.
lol this daily action on oil cracks me up... stop posting stories on this shit, it's not going to double back up to $100+ anytime soon...
And gas continues to go UP weekly... thank you obama!
Wait, was the global economy not going to implode yesterday? Oh, this is zerohedge the economy is going to implode everyday.
THIS TIME IT'S DIFFERENT
WOLF.
Why do you fools constantly try and smear ZH by pretending Tyler has predicted the instantaneous collapse of civilization, resulting only in you looking like an idiot who fails basic reading comprehension?
Can you really not tell the difference between the devolutionary play-by-play, and the inevitable end state?
In all the years I've been here, not once have I seen any of the predictions that people like you like to attribute to the Tylers'. What I do see however, is either ignorant or disingenuous commenters (or perhaps both?) invent these claims.
I take this as confirmation that Tyler is doing a damn fine job at undermining the scam in progress.
NA, why do you preach to these AH's. Probably were
buying Pet.com in 99
Silly me I must have my websites confused. I meant to write this comment on that bearish financial news aggregator publishing articles replete with endtimes rhetoric predicting imminent global collapse. The one that endlessly mocks the mainstream consensus, the very consensus that has been far more profitable for those who subscribe to it in the past 6 years than the bear's consensus has been.
THIS TIME IT'S DIFFERENT
Meanwhile, shale oil producer bleeding like hell and massive lay off...
HIgher, lower, higher, lower....and money being POURED into both sides..im making notes as to what experts are saying what. its funny..
Warming the bench on this one.
Hey oil fuckers, welcome to the daily, manipulated life of a gold bug.
:clappa:
Imagine if we didn't get the FUCK YOU EVERYONE price spike yesterday. It was like someone knew about the inventory report and was like, "NO NOT YET, WE AREN'T POSITIONED FOR THE DROP. SPIKE PRICES, SPIKE PRICES!!!!!!"
Is there actually anyone out there that thought we wouldn't get a massive inventory build?
It is like a bad joke that keeps getting repeated. Bad Jewish humor.
i have never seen oil move like this on api data ...
Check out the volume in contracts. It makes the massive volume of the past few years look like the good old days. RBOB is hysterical.
wow who coulda node. so unexpected. i read Krugman say it was because of the snow.
Hi. When you ever get anything stock, commoditie, bond, etc. Have what Is a fundemental change don't God looking for V bottom. This is going to grind lower for a couple years. Anyone who says buy is trying to sell into your bid.
Sounds like Pickens was over optimistic on how long it would take "we" to shutter enough rigs and soak up oversupply.
BTFD right?
Haha
And gee, it sure looked a bottom there for a moment.
WTI $20 or bust, eom
I think the crude oil market set a multi-year low at the 43.58 level in late-January for a simple reason, 16 year trend line support on the weekly chart held at this low.
That said, I looked back at the past 3 major market lows dating back to 1998 and it took an average of 11.3 weeks of choppy, volatile trade before the final reversal took place. During December 2008 which was the last major market low, it took 12 weeks of prices swinging between 32.00-50.00 before the trend reversed back higher.
For 2015, the market is now trading in the third week since the late-January low suggesting that there should be plenty of opportunity to buy crude oil on weakness back near the 44.00-45.00 level.
wait till the other frauds are found out....Obama/Yellen house of cards is always a couple of days away from complete collaspe
Inventories
Rig count
Inventories
Rig count
Inventories
Rig count
The rises in WTI futures we have seen in the last couple of weeks are all just a result of CONTANGO.
Traders are willing to pay over $50 for March futures because they plan to PHYSICALLY STORE the crude that will be delivered in March 2015 until, let's say, March 2016 and have already sold March 2016 WTI futures for ~ $60. But the crude storage at Cushing OK is starting to fill up fast. Once Cushing is full, crude storage will get more and more EXPENSIVE. With the sputtering US economy not consuming enough oil products, the crude inventories will just GROW and GROW and GROW. And storage will get even MORE EXPENSIVE. And the oil companies will keep producing and selling MORE and MORE and MORE crude in a desperate attempt to meet their huge bond obligations. And storage will get even MORE EXPENSIVE. Eventually things are going to come to a head. And it won't be pretty for certain parties holding HUGE amounts of crude that nobody can use and no one is willing to pay for.
What direction would you say WTI futures will be heading while this debacle unfolds?
I think you've about nailed it. I'm starting to believe that we might actually hit $20/bbl. This is going to break large swaths of the oil industry.
Remember, ZHers, Bakken oil production rose 35% between Dec 2013 and Dec 2014. It may well be higher in Dec 2015 over Dec 2014, but 35%? I am skeptical.
Do you think the west coast strike has anything to do with the conflict with China and Russia?
Such as Food exports.
I charge 3 cent for my thoughts
If your hypothesis has any kernel of truth, like everything else in the hyperconnected globalized interdependent world, hurting someone remote as a geopolitical weapon else hurts your own people as collateral damage.
No, your correct, the psychopaths in charge couldn't give a shit about their own serfs.
Build more F'king tanks or inject it back in the ground for "storage"
It's like all the spam calls I'm now getting on my cellphone...THEY know that enforcement is out to lunch
This is all bullshit. Manipulation plain and simple. This supply/demand/storage bullshit is just cover. There will never not be high demand for oil.