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Commodities Crushed: WTI Plunges To $48 Handle, Copper Breaks Key Support
Perhaps the world is beginning to realize that "it's the demand, stupid" as crude oil prices are collapsing this morning (not helped by "all out production" news from Oman). While 'markets' rallied peculiarly after last week's epic surge in inventories and production data, that has all been given back as one trader noted "the market got ahead of itself, even though the rig count has been falling it is not until mid-yr that we are going to see some impact on supply." WTI is back under $49. To complete the gloom, Copper is probing lower, breaking key support with projections to 222.50 if this move takes shape.
Oman, the biggest Middle Eastern oil producer that’s not a member of OPEC, is boosting crude output to as much as possible with the global price rout over, Salim Al Aufi, undersecretary of the oil and gas ministry, said.
Oman will produce 980,000 barrels a day this year, Al Aufi said in an interview in Muscat on Sunday. That would be 4 percent higher than in 2013, according to BP Plc data. Oman will provide 2014 production figures in April, Al Aufi said.
“It’s crucial that we continue executing the future projects,” Al Aufi said. “It’s crucial that we continue the seismic activities and the exploration activities because when the market turns around, we need to have these opportunities identified and ready to go.”
It appears the humans took over from the machines again...
And copper is breaking down...
Through key support levels...
h/t @TrueSinews
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Maybe we would have government buy up the slack in commodities, thereby precluding delflation? Once the economy recovers, we can sell them back at a profit.
Problem solved!
These are the symptoms of bigger problems
Best comedy on TV is Kernen on CNBS trying to spin that people won't invest in the market.........the MARKET???? what market
Forget real stuff......buy equities.....it's the only way out now.
Yeah, paper assets are where it's at. Even the Chinese have woken up to that fact in recent months.
By the way, could you use the help of a good investment advisor? I'll make you a small fortune in no time. You just need to start with a large fortune.
The author is an idiot if he thinks we believe him.
If people want to know what is going to happen in the markets, and in the world in general months and even a few years in advance - simply go read the Brooking's Institute papers. . For example in one finalized paper they stated that Ukraine required a $1 billion in funding to prevent UAV directed precision artillery strikes, and should receive equipment x,y,z. News articles confirmed that the US government had approved $1 billion in funding and was going to supply equipment x,y,z...
You can't make this stuff up. Their papers on Greece talked about how they would run out of money, there would be bank runs - temporary price controls, and after that the Greece government would back their banks with promissiary notes..
Dripping with intelligence references it's basically CIA policy put to print..
Oil prices are hovering near $50 a barrel in Texas — down more than 50 percent from last summer — and jobs are being slashed by the thousands.
Most of the energy sector is in for a painful 2015, but it's also affecting other Houston industries and the overall state economy.
http://www.bizjournals.com/houston/blog/drilling-down/2015/02/what-the-t...
Oil and copper aren't silver and gold.
Silver was squeezed in London today.
Silver and gold are both up, sadly
That will be the trend.
Over the long term gold and silver will increase in value vs other goods as money buys more goods during a deflation (and during a deflationary crash).
The paper Brookings co-authored on Ukraine is Preserving Ukraine’s Independence, Resisting Russian Aggression: What the United States and NATO Must Do
"...Dripping with intelligence references it's basically CIA policy put to print..."
In other words, it's the U.S./Israeli Military-Industrial Complex's Bridal Registry.
WTI will bounce sometime during the day today, stocks will rally back, gold and silver will drop further - BECAUSE THE FED CARVES EVERY ASSET CLASS TO THEIR NEED, TO FIT THEIR NARRATIVE.
SAME MOVIE DIFFERENT DAY.
" Once the economy recovers"
Hmmm, interesting concept....
What we need now is a king to be over the land...
>>What we need now is a king to be over the land...
But who is smart enough and charismatic enough to do this? We need a good speaker, maybe even a constitutional law professor. But we don't want to know too much about their background and where they are from....
Hmm.....
This is obviously a terrible idea because then you would have something physical, like say gold, collateralizing the currency. Pure madness.
/sarc/ times 1 million
Mental exercise for you: replace gold with something else physical, like say energy, that anyone can produce, but surely not in any way that would debase the currency (the laws of physics do a great job at conservation).
sux demand is going to zero along with this economy. maybe more social programs will boost it
Yes, more social programs and don't forget more money printing too. The only downside to this approach is explaning to our grandchildren why then-contemporary historians in 2050 compare a past phenomenon known as "Central Bankers" to the people who operated the gas chambers at Auschwitz and why so many Central Bankers by 2050 are buried in unmarked mass graves.
Clearly.....we need jobs for terrorists.
Stop it, you're making me go all misty with the unmarked mass graves.
We can bury them all in New Jersey. What a match made in heaven.
Makes sense. I believe Jimmy Hoffa is buried in a NJ unmarked grave. They could call it the Meadowlands Foundation--so appropriate for elite bankers.
"Once the economy recovers, we can sell them back at a profit.
Problem solved!"
It may be the economy will never recover. Demographics are destiny, and populations around the world are starting to roll over and contract, especially in the larger, heavily consuming countries. And it's worse, because children drive consumption. Fewer children, less economic growth. So on a per capita basis, the older the population, the less spending and consumption. If trends continue, there will be "Detroits" all over the Northern hemisphere. Russia is in especially dire demographic straits, which is too bad, because there are exceptionally hot women in Russia.
As it now stands, though, Russia has the highest ratio of women to men in the world. So, if you need one, get 'em while they're hot because supplies are limited and dwindling.
MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR MOAR
Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar Woar
I think you are underestimating how profitable WOAR can be for certain monied elite, meaning they accordingly won't give a rats ass.
They all have their secure compounds in the southern hemisphere to wait out a nuclear war. It's all about profits for these people. They could care less about humanity.
If we locate those compounds, we could send the GPS specs to Vlad and Xi!
Secured compound, nice, so they can eat eachother inside without being able to escpae. I would pay for a movie like that. Where the elite eat each other in a secure compound, and a few people manage to live outside in happiness.
War is a racket, but sometimes a racketeer kills his victim. Not event parasites kill their guests.
it is printable, moar, qe 4, print food, war, growth, gov.org, print, print to prosperity. working just swell. print anything for an awesome tomorrow. it is working awesome.hey print an accadamy award, 3d print legos, print anything your heart desires, cause it will be awesome. print racial equality too...
some parasites do kill their hosts.
Maybe it's like McDonald's coffee - if you pay for the first 7 wars, the 8th one's free!
Yeah, lets sell all that shit and buy the SnP. How hard can it be?
I hope this black shit gets to $10 a barrel. But my soul tells me innocent people will die for no reason whatsoever should oil drop that low.
And if it shoots back up to $100/bbl innocent people will die for no reason whatsoever, too. Take any win you can.
i can't wait to die for a bankster. where do go next? i want to be a warrior...
Be patient! Clinton/Bush 2016 will make your wish come true!
*****
Hillary: Jeb and I would like to thank all of you for being here at the WH tonight!
Jeb: And, we have a special guest, Harry Connick, Jr, who will be doing a new song!
Hillary: "That 'Ol Neocon Crowd of Mine!"
Jeb: Take it away, piano player!
More like Jedidiah Bush would seem right now....
Can't argue with that. +1
Where are they gonna store all the excess oil?
I woke up this morning and there was a huge tank farm a mile down the street from my house.
(Of course, that's been true every morning since I've lived here, so I wouldn't read too much into that)
I got a call from some guy in cushing early asking about my 250-gal tank out back...
Sure I would like to believe supply and demand have something to do with it...but I feel like this is more manipulation than supply and demand at work. Whatever happens I am certain it BULLISH. Keep BTMFATH suckers. What could possibly go wrong?
Good comment: we no longer know what is or is not manipulated to what extent!!
store the oil in the ground where they were fracking. reverse the process. simple, problem solved. now it is here for that day of 100/bbl oil. think about it...
Selective deflation, you have to love it.
Classic Crimex options expiry take down.
Demand? HAHAHAHA! What's that?
. . . "It's the PRINTING, stupid!"
TORONTO, ON--(Marketwired - February 23, 2015) - Scotiabank's Commodity Price Index plunged again in January, -8.6% month-over-month (m/m) or -27.9% year-over-year (yr/yr), dropping below the April-2009 low during the 'Great Recession.' Commodity prices are now at levels last seen in January 2007.
http://www.marketwired.com/press-release/scotiabank-commodity-price-inde...
All those oil contracts are worth, well...zero.
Can't even give the oil away...let alone pay the cost of storage.
What's that? You've levered the tank farm too?
Its the offer - as Austrians say since nearly hundred years. Not only but mainly Keynes said the opposit - an was wrong what he recogniced by himself publicly at the end of his life. But most people - because they were (and are) socialists or something similar - couldn´t see that.
Also there is a lack of demand because of recessional signs all over the world, surely. For that the offer of energy from OPEC, US and Russia is too much: So in the end it is the big offer that drives prices south. Question is, how long producers will be happy with their actual production and offer.
Oil would have to stay between $30 and $35 a barrel for at least six months before wells and mines are shut, according to the Canadian Energy Research Institute http://www.bloomberg.com/news/articles/2015-02-20/canadian-oil-sands-output-growth-defies-plunge-in-prices-energy
February 21, 2015 I wrote: So let's get it there I hear the Arabs thinking. IAW expect lower oil prices soon. And here we are, Brent crude $58.69 and U.S. crude $48.84 A Barrel.
Brent crude $58.96 and U.S. crude $49.12 A Barrel Now http://www.bloomberg.com/energy/
WTF! Do we have a PPT on oil now?
Is that a Soviet boomer in New York Harbor?
Collapse? Come on, a bit more nerve. Any move of more than 4% in one trading session could be called a volatile sell off but we are not even near minus 2%!!!
If oil goes down and at least retests the lows, the play is to short the fuck out of WLL, OAS, BOKF and get long RUSS. If oil breaks through new lows then you double/triple up on those positions.
My life quite literally depends on it...
Bullish,Quick, buy Biotech... They won't stay up here forever, just until Nasdaq 5000.
Hey that's a great idea, pull it out of the ground, count it and pump it back in... Known reserves. sit on it till the price goes back up.. and rehypothacate it a zillion times to somebody, punch out and disappear before they catch on. /s ( i think )
LOL - see this from a few days back:
http://www.zerohedge.com/news/2015-02-11/wti-nears-47-handle-after-inven...