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Oil Tumbles Under $43 As Key Support Breached; Fresh 6 Year Lows
Moments ago, soothing words by Saudi Arabians notwithstanding, both Brent and WTI, had another step move lower, with Wext-Texas Intermediate sliding under $43, a fresh 6 year low, and well below the January lows of $44.37! What may be causing it: well, aside for "more sellers than buyers", and a rumor that Genscape reporting another major inventory build at Cushing, a breach of a key support line may be the reason. BofA explains.
CLJ5 has broken down overnight, breaking the Jan-29 lows at 44.37 (CLK5 needs to break 45.52, it's not there yet). This points to a continuation of the long term bear trend, exposing the confluence of long term support between 41.15/37.80. Into here we look for greater signs of basing. especially as Brent, Gasoil, RBOB and HO are not at risk of breaking their January lows, setting up the potential for bullish price divergences.
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wonder if Greenspan was already short prior to talking oil down Friday.. on BBG
http://hedgeaccordingly.com/2015/03/alan-greenspan-to-bbg-oil-hasnt-hit-...
That chart seems to imply that something changed dramatically in the global economy in 2007/2008.
Huh.
Saudi Arabia is going to pump at warp speed until every Bakken Shale & Athabasca oil sands worker drowns in an ocean of SA light, sweet crude that's 3,000 feet deep and washes over every rig from ND to Alberta.
k.. and put it where. .and sell it to whom?
Sell it?
They'll end up giving it away for free if that's what it takes to accomplish their true end, permanent goal.
Look up Machiavelli.
You're not thinking long term enough in a world where high oil prices leads to lower & lower aggregate demand for oil, AND oil being squeezed from shale rock & cooked out of tar sands, AND an increasing (if belated) inclination by energy consumers AND producers to shift to a diversified and broad array of alternatives (hydro, natural gas, wind, solar, hydrogen...yikes, even that old dirty coal - to fuel more electricity production).
The Saudis are going to do whatever it takes to kill or forestall as much emergent competition as possible, no matter the cost to their former oligopoly moat.
We will never run out of oil as it is generated constantly inside the earth. Empty wells are in fact refilling themselves and becoming productive again.
You then have to ask yourself: at what rate?
Judging by the down arrows, you didn't toe the party line. Why is it easier for the dumbasses to believe in fermenting dino graveyard juice than it is to believe empirically proven hypothesis?
Oh, highest banker, care to provide a link?
Abiotic Oil -- Vladimir Kutcherov, et al
Scientific Publication
"Methane-derived hydrocarbons produced under upper-mantle conditions," Nature Geoscience, 2009
The Russians know this, hence the drilling of super deep wells to tap that sweet and boundless abiotic oil.
Meanwhile, back in the Home of 'the Control of the Price and Distribution of Oil', the pump prices are beginning to diverge ('gasoline' is rising to within 50 cents of diesel fuel).
British Petroleum knew the facts of the matter, as well (hence the illegal drilling of the USGS Mancondo Lease numbers 252 A, B, and C in the Gulf of Mexico, to an admitted depth of 30,260 feet below the seafloor before they fractured the Earth's crust and killed the Gulf Stream Conveyor that gives the needed warmth to the North Atlantic Conveyor via the coverup of the spill that used Corexit 9500/9527A to sink the oil to the seafloor; acting like a giant thermal insulator).
'Kola S.G' wells, the Russians called them, I think.
"B.K. Lim" was a good source of true information.
Still $43 too expensive. Keep dropping.
we will see 40 before 46.
bear in Oil = bull in Treasuries.
so you are a bull on stocks and energy stocks as well.. and jobs in USA? makes sense
no - Oil and Treasuries have a strong inverse correlation for trading -
a typical trade is short Oil and long Treasuries.
NoVa
and treasuries are typically inverse equity markets .. but with ECB QE lifting all boats with the tide.. stocks and bonds and dollar are all rising in unison .. and DX was down 1% this am and crude did not flinch. looks like this is forced liquidation CL on the Heels of Greenspan's "well timed" BBG appearance..
War is upon us, pentagram needs cheap oil.
We have gone to DEFCON 3 yall yellow condition here we are I am guessing . Great news for stawks should be at a record by tomorrow
virgins soon to be slayed at the alter of USD
It'll be the end of the world, as we know it!
Guns, and tanks, and firetrucks...
https://www.youtube.com/watch?v=qx73vTi5aFo
Get it down to $20
Get it down to ZERO
sum ting wong, we too low
rofl
C'mon brush up on your Mandarin. It's Wi Tu Lo.
ROFL
What...wait, no "since Lehman"?
can't say it anymore - NoDebt slapped a Trademark on the phrase. Would have to pay royalties -
This has NEVER HAPPENED since the Lehman Collapse and Entropy Event of 200*...
(Larry Kudlow, and I am expecting royalty payments)
Buy and hold Lehman Brothers! You are STUPID if you sell, Meshuginahs!
(Jim Cramer, and I am ALSO expecting royalty payments; especially after my award-winning Bear Sterns rant in '08)
As a 'Mile-high Club' member, I expect that these two guys that liked to fuck me over and over again will take good care of me! STOP it, Henry! You can't even get a hard-on anymore!
(Maria Bartilomo, getting older and saggier, but still attractive to guys with pot-bellies, asking with desparate honesty for HER credit, as well)
If Janet loses her "patience", nail-gun sales should surge in fracking country.
Don't worry folks, there is no depression. It's a figment of your imagination. Economic times have never been better. Go back to watching teevee..... maybe buy some iCrap so we can keep an eye on ya.
Or take a "pilgrimage" to Disney World! I hear the lines are short and the food and lodging are inexpensive (LOL).
+1
Dows up 195+.. nothing to see here.
Pity the poor Maduro´s Venezuela. The lowest the price the more diatribes and instability.
Is oil inversely correlated with printer ink?
SPY soars 20 points on hope and weak economic data... Surely the Fed will remain "patient" and data dependant a few moar years. Nobody has patience like Grandmother Janet.
Bad news is good news.
This won't end well.
Just in case you missed it on Friday:
https://www.dmr.nd.gov/oilgas/stats/statisticsvw.asp
Is it possible that those evil speculators (who have been keeping the price UP, not down) are about to kick oil to the curb cause they know what's coming?
$35/bbl bitches. Get used to it.
"What may be causing it: well, aside for "more sellers than buyers", and a rumor that Genscape reporting another major inventory build at Cushing, a breach of a key support line may be the reason."
Do these guys ever give up?
"What may be causing it" ... also taking out CRB (commodity basket) down almost 3% today ... hitting multi multi year lows
It is the global economy, stoopid
Dust off those DOW 20k hats, here we come!
Do I hear $39 ????
Until North American supply stops increasing every damn week expect it to keep on dropping.
Excellent, I'm looking forward to WTI being shipped to East Coast refiners... First it was trains, then it will be ships, and then will we be hearing of a pipeline deal to connect up the East Coast? Oil Independence here we come.
funny gas is actually going up in bizarro world
Gasoline inventories aren't as super high as crude. Check EIA report on Wednesday morning.
I speculate, it has not much to do with the actual stuff being sold, but that the obvious safer bet at this point is to go long, and so the casino operators/participants are pushing it lower with their algos to whack the weak accounts and match new buy order flow with that and earn the spreads on it.
It's also similar to the theater in USTs leading up to the September 2013 FOMC where they pumped the taper story in the media and then of course there was no taper announcement and USTs reversed. ...and kept rallying ever since despite the taper later. Based on this simple 'follow the rigging' kind of an analogy the USD might be topping.
BofA- Go fuck yaself, bailed out losers.
Those fucks ('Bank Of America') still have $5.00 of mine that they 'withheld' when they were bought by Sumitomo Bank, back in the 1980's. I tried to close the account, but these fucks told me that they couldn't. For all I know, I am STILL drawing 'interest'.
It's not the amount that I lost that is the matter: It's the principle of the thing.
GO FUCK YOURSELVES, B of A!
Fukushima Dai-Ichi General Electric BWR MK.1 radiation bothering you, much, you thieving fucks?
What? And gas prices are increasing. Just drove through the Permian basin this weekend. Rigs are drilling and mud trucks back and forth on the road going everywhere. This must be unequivocally good or at least sort of good.
Either the data that shows rigs dropping is wrong or your drive-by observation is wrong. Wonder which?
http://www.bizjournals.com/houston/morning_call/2015/03/crude-oil-tumble...
POOR HOMEOWNER REFUSES OIL DRILLING IN HIS YARD DUE TO LOW OIL PRICES
"I can make more money working for McDonalds in Liberia".
Source: www.financialpaparazzi.com
Are we shills for the PTBs around here???
We all know very well oil prices are set on the WORLD MARKET,
not the US market, and world wide supply and demand are NOT
out of balance anymore today than at any time in the last
5 years.
...