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Contango Tumbles To 2-Month Lows As WTI Crude Melts Up Above $49
Fifth ramp in 5 days takes WTI crude back above $49 for the first time in 2 weeks... on the heels of record production, record streak of inventory builds, and record inventory at Cushing. The 1Y spread has compressed to 2-month lows...
WTI melts up...
Contango at 2-month lows...
as the whole curve flattens...
Just a chart of the most active energy futures contracts today: pic.twitter.com/AXsAJjzRYX
— Eric Scott Hunsader (@nanexllc) March 25, 2015
Charts: Nanex and Bloomberg
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bull trap in the making?
What the fuck is up with those volume graphs? I don't follow the oil market but those daily volume graphs look really weird.
Bull something..... I can hardly wait to see whose holding this crap.......
Big time... Treasury yields are creeping a little higher, and the usdx is over sold on the 5hr chart. Ifully expect some $usd strengthening over the next 48 hours in front of the final q4 gdp print Friday.
Don't forget Mr. Yellen is scheduled to speak 15minutes before the N.Y. equity close Friday.
12:45 USD Fed Chair Yellen Speaks 3:45 p.m. N.Y. time
Saudis moving forces to Yemen border. Iranian backed rebels in Yemen on the move..
More reprecussions from Obammie foreign policy.
As late as 2010, things were going so well in Iraq that Obama and Biden were bragging. Now, after Obama’s politically-motivated pullout and disengagement, the whole thing’s fallen apart. This is near-criminal neglect and incompetence, and an awful lot of people will pay a steep price for the Obama Administration’s fecklessness.
Those are definitely some important axioms to factor in.(relative to oil price spikes) Unfortunately, I think the glut is so wide spread, it's not likely to have any major impact over the short term.
Here's an interesting scenario. How well protected are all those rented contango tankers, (full of crude) sitting outside of major ports? What happens if some terrorists decide to blow a couple of those tankers up?
"...if some terrorists decide to blow a couple of those tankers up"
i assume you are referring to banker paid militia so banks holding that oil can collect the insurance?
All hands on deck from the PPT. Imagine the Dow with crude down a couple bucks today. We can't have the sacred Dow down over a few hundred points . . . . . EVER!!!
Charts telling me it should resume the downtrend in a big way especially if yet again it can't get over that 10 week with some pop and sizzle. The Fed always zeroes in on "things too important for momo and fairy tales" as it has all along with AAPL, AMZN, and many others.
SCO holding higher than the previous unicorn counter-trend move (I know, I know spare me the lecture on ETFs just an observation).
efficient market theory...
Record demand for refined product? When you only look at one part of the picture you should expect to be confused. As storage fills, imports will fall and demand for US oil willl rise thus causing the gap between WTI and Brent to narrow. That is most likely what the market is expecting. The storage at Cushing could be consumed in three days if the pipelines supported that but they don't. In any case, Cactus is coming online in a couple of weeks and that means 250,000 bbl/day less input to Cushing.
Tsk, there you go ignoring the smartest people in the room when all they wanna do is rape and pillage the country.....
i was gonna comment on this topic but did anyone just catch the guy from tuttle tactical management on CNBC? he said this bull market will eventually end but not today. mandy asked him whats going to be the cause. he said "when the fed leaves the market, that will be the end of the bull". they immediately cut off his interview to go to a "market flash" or some shit.
lol. can't have someone telling the truth - can only imagine what the producers were saying to the anchors "get this guy off the fucking air ... don't u realize we have a HOPIUM narrative based on FUNNY-mentals to promote!!!"
CNBC hasn't yet learned that they get moar viewers when stocks crash.
I wonder when I should buy my puts for June expiration? How long can this idiot ramp possibly last?
I'd be careful about oil since this looks to be set up for maximum pain for somebody.....
We 'melted' some folks
markets crash in Oct!
Wait till we get into backwardation, oil will be at 60$.
Is this HFTs scalping industry? Maybe a round of unfortunate accidents in the next couple months at the HFT firms?
Quit trying to figure the direction of oil. It is going to go up just because it has gone down.
I guess the Bankers do owe us
Will China Pay the $1 trillion it Owes Americans?
http://www.newenglishreview.org/blog_direct_link.cfm/blog_id/42080
i need about three fiddy [/the damn loch ness monster]
Buzz, I wonder if we can give the Incubus aka Mr.Yellen about $Three Fiddy to dry up and die?
Because US production may peak by the end of April (up this week 0.032% according to the WAG of EIA), is it really such a surprise that May's futures are up?
Production has peaked. The EIA's algo driven production estimates are nonsense.
i saw the eia's sept production numbers for canada, which looked completely made up, and then the revised numbers in the oct edition, which looked even less believable. what makes you also think the eia is lying through their teeth?
I'd say check out their production numbers in January for North Dakota and some of the numbers out of Texas. According to those states it was falling in January, yet the EIA's numbers had production increasing. The EIA numbers are an estimate using an algo.
Given the Tylers' committment to truth, justice and algo busting, I would have thought they'd be all over it.
More bucks in clickbait these days it seems.
Another "so what" moment...
Whatever production happens to be
means nothing without corresponding "consumption"
figures.
Any bets, when you put those two together you get
a WTF moment... and prices rise...
!
How's that $20 call from Goldman working out for the lemmings?
Nothing but a bunch of BULL.
Your Contongo may be tumbling,but my Puntango sure is pumping.
Since the PPT appear to have lost control of stawks today, TPTB will manipulate whatever else they can...like crude and U.S. 10 year treasuries both up...
Oh for crying out loud .. "melt up". At what point, if ever, will ZH go bullish on, say, crude? When WTI hits $1?
Saudi Arabia now bombing Yemen, which was "cleared with the US" which means a lot of people in DC would have known what was coming a few hours before it happened. And you wonder why the suden Jump???