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WTI Crude Tops $60 (5 Month Highs) After Saudi's "Leave It To Allah" Comments
WTI Crude is now up 43% from its mid-March lows (at $42), topping $60 for the first time since early December. This is a 25% retracement of the June to March drop. Despite near-record US production (rose last week WoW), record Saudi production, slowing global economies, and expectations that higher prices will bring a flood of new supply as cash-starved frackers start pumping again; it appears the squeeze combined with Middle East tensions is driving the resurgence (for now).
With yesterday's machine-plunge long forgotten - another machine-surge run-stop guaranteed tagging $60 stops...
Pushing 5-month highs and a 25% retracement of the drop...
With speculation rife over how long Saudi Arabia is content to see oil prices slump (as we noted the nation's record reserves plunge), the country's oil minister told CNBC that only Allah knows where prices are heading.
Influential Saudi Oil Minister, Ali Al-Naimi, told CNBC Tuesday that "no one can set the price of oil - it's up to Allah." The remark comes amid widespread speculation over how long Saudi Arabia will maintain its decision not to cut production - a move that could support prices.
Charts: Bloomberg
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TOTAL BULLSHIT!!!!
but, but, but oil in the $20's
alla baba fuck a duck said go take a shit, so i did...
Are 72 virgins in this mix somewhere?...
as mick says " i don't have that much jab" bedbugs uptown...
It is written
Allah fickt Schweine
You don't need us to tell you that gas prices are back on the rise.
https://www.youtube.com/watch?v=dAkxR9T01pw
"Only Allah sets the oil price." Somewhere in Moscow, Putin is laughing his ass off.
Had those jihadist dopes in Garland, Texas succeeded in gunning down civilians, oil would be surging now and the CIA handlers of the ISIS killers would be getting promotions and bonuses. Just one cop with real good aim and a smoking habit (which was why he was outside the building, lighting up first a cigarette, then some shooters) wrecked the Garland false flag operation. Who says cigarettes are bad for your health? Not always.
Now all those people who poopooed me back in Feb and March when I called $60 for the end of April ( ok I was off a week).... Can suck it! Chiching$$$
I called "we've seen the lows for the year" in February. And I was wrong. Tested the bottom again in March and beat the old lows by... pennies, basically. But wrong is still wrong.
Congrats on the good call.
timing's a bitch ain't it
Sure, for whatever reason, my original comment #5966823 has been removed (along with everyone else's)
but FWIW:
Tue, 04/07/2015 - 15:22 | 5966823 GoinFawr
" if POBrent pops ~59.75 and WCS (Western Captured Supplier) discount holds <~13fiatscos..."
Witness it
One reason above all. The dollar is trash. It'll be a lot higher soon, no matter what supply is.
if alla baba dolla depreciates 50 % oil will be 120/bbl - frack on baby, frack on.
never mind we need to drink water, what a fucking joke, the human race smacks the wall at full speed ahead...
every hole drilled is just another asshole on the face of the earth...
Meanwhile the rich are privatizing your water. Soon you gonna have to reach deep in those pockets of yours to quench that thirst.
Hyperinflation, water shortage, real-estate bubble, looks like this is quickly turning rather ugly. May god have mercy on your souls.
then prepare to dig ever deeper for fully privatized breathable air, and finally: visible light. Because those will be the only two 'commodities' left on this planet that haven't been wholly spoken for via odious debt.
But I'm assured it will all be delivered more efficiently, and Osch Kosh B'Goch natural lawfully.
Of course that sounds moon-batty, today; you know, like 'total surveillance' sounded a few decades ago.
It's easier to think of the human race as past tense rather than the future. The snow will eventually fly for 130000 years with the regularily occuring ice age coming up and by a process of unavoidable entropy the population is culled. With the current socio-economic model it just speeds up the inevidable through poor planning and questionable ideologies that literally set the world back 1600 years.
http://en.wikipedia.org/wiki/Glacial_period
Because the 12000 year inter-glacial is ending.
http://en.wikipedia.org/wiki/Interglacial
Literally there is no where for people to run that's far enough or deep enough. Earth will be "closed for renovations". When the ice melts, new mountains will be carved, the water tables restored, it all grows back. It'll be like eden. Minus people and all their self created issues. Just a pretty blue and green planet spinning through the milky way with the occassional visitor.
Partly, that. Partly the fact the rest of the world actually has running economies and they are doing better where the business actually counts, mainstreet. What the western world would have stated as 'the developing world' can now afford oil prices being higher after decades of industry cost cutting methods to ship business overseas.
Eventually this led to the same industries just offering the business models and operational aspects outside of their sphere of influence. Couple of decades later the foundation of anything uniquely offered as a business model once in the USA is now cheaper, faster and more effective than the original business model. Literally the multinationals saved a nickle to lose a dollar, in ten years most of the multinationals will either be gone or striped. The stock that comprises all those pension funds, trust funds and wall paper every western bank and insurance company just won't mean anything.
The stock market will however be at 36000, but the price of bread will be probably over 20 a loaf, but because the inflation will be ignored the average person's salary will just fall further and further behind. In turn the taxes and fees to simply live somewhere will increase sharply, un-noticed though, because it'll be itemized into hundreds of little pockets of government 'revenue' (HA!). The taxes and fees collected will only be put towards servicing the interest, until even that is no longer possible since the inflation will eclipse any GDP, real or imagined.
The price of oil is just a indicator of something else. While oil after a certain price point is seemingly unaffordable to the western world, it isn't a consideration to the rest of the world anymore with their economies being capable of affording oil at X price. Eventually the commodity price management will be ripped out of NYC and Chicago and the western world just doesn't get invited to the big table anymore unless someone is looking for disposable grunts.
Oil, runs the world btw. Not banks.
You say economies are slowing? Who is in recession? In Europe growth is picking up. Russia is growing. China growth has slowed in percent terms, but is likely higher in absolute terms. All major economies are experiencing increased economic activity.
If by increased economic activity you mean printing money from thin air to speed up inflation and service debt repayments, then yes, there is "economic activity". But never mistake the decomposition of a body for life even though something is moving around.
Since the Saudis won't raise oil prices, then Goldman is doing Allah's work!
Oil, sorry Allah, moves in mysterious ways.
Why cut production when the price they get rises every day? PUMP MORE!
Between 2003 and 2008, the amount of speculative money in commodities grew from $13 billion to $317 billion, an increase of 2,300 percent. By 2008, a barrel of oil was traded 27 times, on average, before it was actually delivered and consumed.
http://trueslant.com/justingardner/2009/07/03/matt-taibbi-blows-the-lid-off-oilgas-speculation-by-goldman-sachs/
At least some of the Canadians are getting it right..
http://www.equedia.com/how-fast-is-high-frequency-trading/
they aren't worried. summer is almost here.
What they really mean is that they tried to set the price of oil but when you have Blankfein doing God's work, you can't fight the Jewish controlled manipulated market.
The day the first bankster is hung from a lamppost, oil goes to $20.
Do i just jump off this train cause either way i'm fucked.. so many others feel the same way...
how do you stay sane when the world is insane...
act crazy so you don't stand out. zombies don't bite one of their own.
Trade balance...ouches! Looks like Q1 might be negative GDP.
Trust me when you factor in 6-8% inflation we are and have been at negative GDP for a couple of years at least
allah who?
that's some shit W would say
But, but $20 oil is the new normal.. Cushing is filled to the brim salt mines full.. I guess Goldman did not get the memo or they ran out of tankers to fill..
Doesn't "let God sort it out" normally come after some sort of threat of death?
FED will buy that oil. They'll buy everything.
Yes, it's no longer so much a future price of oil expressed in dollars. More a future price of dollars expressed in oil.
what hedgefund manager doesn't want a dump pump dump market! Waiting for the epic blow out when the streets of Cushing are awash in oil!
So then Allah likes $60 oil? Folks, we've full-retarded and beyond....buckle up.
Religion: providing delusions since forever.
Religions sure do to share and recycle a lot of parables.
some of them are worth recycling, because, despite being appropriated as religious inventions, they have always been universally inherent to human nature.
Eg. even some atheists and the secular humanists tell their kids the tale of the man who treated his neighbours with the same respect he expected from them for himself.
The Saudis are caught in a classic double bind. They are burning up foreign reserves in order to hold on to market share. However, the situation is becoming so bad that many believe that it is only a matter of time before they are forced to take steps to drive prices back up to $80.
The problem, with this theory, is that it does not take into account Iran. Per Commerzbank:
"If a binding agreement were to be signed with Iran in June – which we have not yet accounted for in our forecasts – this would push the oil price down by up to USD 10 per barrel in the short to medium-term as the oversupply would then be much greater and last for much longer than presently assumed."
As students of the double bind will know, it may take more than Allah to break the logjam.
I guess the Saudis decided it was too expensive to crash the USA shale industry AND invade Yemen.
Is Cushing full yet? When is oil going to be $20?
Allah is an HFT bot?
Pay no attention to the electronic diety behind the curtain.
>> Allah is an HFT bot?
Unlikely since Allah has a phone number in the greater New Orleans area.
http://www.whois.com/whois/allah.com
I thought I saw him at Mardis Gras.
All bullshit - Allah is real busy with his 72 virgin boys
EOG Will Resume Major Oil Growth at ‘Stable’ $65 Price
5 May 2015, by Bradley Olson (Bloomberg)
http://www.bloomberg.com/news/articles/2015-05-05/eog-resources-will-res...
Oil at $65 Could Free 500,000 Barrels From Shale ’Fracklog’
24 April 2015, by Lynn Doan and Dan Murtaugh (Bloomberg)
http://www.bloomberg.com/news/articles/2015-04-24/oil-at-65-seen-freeing-half-million-barrels-from-shale-fracklog