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Crude Collapse Continues - WTI Trades $47 Handle, New 4-Month Lows, Credit Crashing
The crude collapse continues... and HY energy credit risk spikes above 950bps...
Another day another plunge...
Taking WTI back to 4-month lows...
Smashing Energy credit risk crashes back over 950bps...
Charts: Bloomberg
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25 Here we come.....and it will fall further. I called 35 about 6 months ago.....now it seems i was too optimistic.
Contracts will be manipulated till they cant deliver..then contracts backed by broken promises are marked to 0.
RIPS
Great. Oil is at $47 a barrel and here in California I'm paying $147 a barrel gas prices.
Thank you sir, may I have another.
[SHWACK!!!!]
Thank you sir, may I have another.
So if oil drops to $25 will the price of gas come down at the pump?
NO, it will go up. Prices are set by super majors, who have been exiting production for decades. Note their falling reserves. They're mostly in refining and manufacturing now, with some production still.
Their losses in production are offset by keeping gas prices high for their refining business. So the lower oil prices go, the higher they'll have to jack up gas prices to offset their production losses.
Prices are set by Wall Street
Only in Venezuela where it is 6 cents a gallon today
Because the government spends all of its money to subsidize gasoline, they have nothing left for less important things like food, electricity, and toilet paper. Nice trade off, right?
Oil is always slippery... just as gold always shines.
Just think of all those PE firms that assumed this was "just another cycle" and bought energy credit like salivating dogs.
Up here in Canada, there was so much exuberance and delusion, nobody thought for one second this was more than a short term blip. PE firms were so excited about the "opportunity" they could hardly contain their giddiness.
6 years of FED QE creates zombies alright.
How is that full-spectrum war against Putin working out, dear beloved droner-in-chief?
Which will hit zero first? Gold or crude? Let the race to the bottom continue !
Are you always a moron, or only on ZH?
We are watching the death throes of the petrodollar, and you think gold will go to 0.
Paper gold is already worth zero, just as the USD soon will be.
It is different this time, very different.
It's a race to the bottom for all fiat currencies. Even China is now in QE mode.
Maybe he means zero as in "no amount of USD" will buy any oil or gold. Isn't that the dream?
Someone better tell Patel and Ashish at my local Exxon as the price hasn't moved lower all summer. It's almost like I'm being lied to !!!
Gasoline IS only one dollar a gallon. It's just that the premium adds a bit to the price. And I don't mean premium gas.
This must be another sign of the booming global eCONomy. I know this because the pretty boobies on CNBS told me so.
Here comes increased gas tax. http://thehill.com/policy/transportation/246464-six-states-increasing-ga...
$30 a barrel soon. Now that Iran can finally ship all the oil that's been sitting off its coast, watch everyone race to the bottom. ISIS production hasn't slowed either. Let's factor in collapsing global demand as well, just to cement that price point.
The shale miracle is a fake and is leaving nothing behind but poisoned aquifers, all while the west is suffering severe drought. At least Cushing is full to the brim, just in time for a major bankers' war to distract everyone. The invasion of Syria must proceed as planned. Greater Yinon or bust, and save Ukraine (but not the people) for the khazars.
luckily, this time is different and stocks are correct to be in a bubble and credit is wrong to price in any risk.