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WTI Plunges To $44 Handle, Near 5-Month Lows
Despite CNBC's focus on 'lows are in' after a bigger than expected inventory draw, the realization that production continues to surge has cratered WTI crude which is now trading with a $44 handle!! This is the lowest in 5 months. Energy credit risk is back near 1000bps once again - near its record wides vs the broad HY index.
Crude plunges from $46 to $44
... and credit risk soars:
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production surging? seriously?
The increase in producion of 52kbbl/day is strictly an estimate and subject to lot's of noise. The 4.4mmbbl draw is a real measurement and it would take 12 weeks of the increased production to make up for that draw. That assumes also that production really did increase.
You can not use math in these markets. It is what they want it to be. If you are underwater with investments made in shale plays, then cap your wells or have tanks on property big enough to store if you expect prices to rise enough for a profit in the next 3 months.
You can not make sense with any numbers released. Everything is fucked up. You either sell oil in your case for a loss or wait them out. If you are in debt due to investing in a top then sell for breakeven the property and mineral rights or a small profit if you are able too. This is the play of the few and it will continue to be the play of the few until you are no longer in the game. Then oil goes back up and they get suckers to invest in tops again and start the same scam. They always give you enough rope to hang yourself.
Its called Obama math
aka common core
Why is gas 70-80 cents higher than it was last winter when we were down near $45 a barrel??? Gas should be a $1.89 right now not in the $2.50 range.
inflation?????
Is your purchasing power for 1 US dollar the same?
Unions at refineries????
Greed????
There is a bunch of variables why. We even have politicians who want to apply more tax to gas since it is falling. That is where we are at in this world. Corporations and politicians refuse to pass any savings to the people. They want it all for their satanic fag club.
Bravo
Summer blend is more expensive due to EPA rules and gasoline demand is higher in the summer. Diesel and jet fuel prices are down. Wait until Oct for cheaper prices
I paid $1.12/liter for regular this week. That's about us$4.50/gal up here in Nova Scotia. That's considered cheap by the locals. The price is set once a week. Talk about a racket.
Its the summer blend it should go down withing the next 60 days. but the refiners are still stickin it too us. The reality is they will go broke at a certain price and we will all be screwed. NO GAS.
This is pretty sweet, just got a new f150 king ranch...keep it coming
I get royalties, don't need profits, the wells will continue to pump but the operators use variable chokes and will restrict flow in the lowered price environment. The smart shale operators are all doing this. I am not too unhappy that oil is going down. I have one section up in Orla that has two good shale wells on either side of it. The deep rights are owned by XOM who clearly are not going to drill this year but they are being held by a stripper operator that is bound to be losing money on the remaining well that is also pumping a lot of water now. The other two stripper wells have completely watered out but he continues to pump them in a vain attempt to continue holding the lease. The problem is that his expenses are now overwhelming his income because only 82 barrels got pumped in May and in June, he had a load rejected for high bottoms and too much water in the tank so he had to pay to have someone come haul away 2 ft of water from the bottom of the tank. Of course that left him with a lot less oil to sell and that was late June. I can only hope he is having to sell at these prices because he waited for the tank to fill up again. The well that feeds the tank wasn't pumping anyway so I think there is something wrong with it. If this guy loses the lease then I get my deep rights back and that means when prices do go back up, I will get a huge lease bonus and a much better lease than the 60 year old lease the stripper wells are holding in place.
You got a plan and if you don't need profits start looking around more for troubled leases. Build the empire for your family. It is one hell of a gift to leave a family.
Most of the producers are deep in debt and need the cash or else they go bankrupt. Any properties or leases purchased in the past 4 years is deep under water. Everybody is trying to be the last man standing. It's a race to the bottom
and thats pretty much the jest of it. You could even apply currency to the same principle.
The market, wrs, apparently begs to differ. Price is truth...
Oh my GAWD! Isn't that like $50 below production cost? Someone should do something! These brave patriots need help from the gubmint.
This aggression will not stand, man!
I'm sure these low prices will be passed along to consumers.
Bwaaaahahahahaha
This is called making as much as you can, while you can.
I'm still thinking at least one more jump to the mid 50's, though that's starting to look optimistic.....
come on, sub $40. i want $2 diesel.
I'm looking for diesel way cheaper than gas again but $30 crude will help quite a bit.
How long before gas gets to 6 cents a gallon as in Venezuela?
World oil production is 94 million barrels a day and oil is falling because US is producing a puny 54,000 barrels a day more (0.06%)?
Oil markets are completely manipulated like the gold market and every other market
I'm holding out for a $30 handle.
$22tn in oil derivatives,where for art thou ?
I took contract options puts at 58 strike price 45 april 2016 :)....every dollars gonna make my stack holla.
I bet we will see 35 before we see 55. Moneys on the table.
Cmon 20. This is how socialists hypnotize the people by subsidizing/socializing the politicians and bureaucrats losses on the masses with a printing press.
RIPS
Oh really? CNBC said "the lows are in"? Bloomberg TV said nothing of the sort. That's why I don't trust CNBC and that's why I only watch Bloomberg.
CNBC pundits are like children, fully of emotion and irrational thinking. Never trust them.
Thank you for your kind and thoughtful insight.
What is CNBC?
Bloomberg is full of know nothing arseholes as well
The air brake will be applied at $40 as THE OIL TRADING G_D in CT backs up the trucks to BUY BUY BUY BUY BUY BUY as Cramer would spout.
China slowing economy is the root cause.
No China, no world growth anymore.
The true question is does 45$ is a good entry point or it will be crushed to 40 or even 35 handle ? !!!
$44 oil makes about as much sense as $147 oil.
Gas is nearly $4 in California. It's going to be scary when oil is back over 100 per barrel.
They can fight the tide while the pleebs are building their lifeboats...but the tide will come in and kill the pleebs. Rinse repeat.
Bernie 2016!!!! LOL
RIPS
Good..I can burn oil for heat this winter.. burned wood and coal last winter.. ridiculous that coal! Was cheap as hell but too labor intensive.
Stocks are crashing.
Nah. The market is on auto-pilot. 0.50% rise or drop on alternating days.
I think the real crash comes after earning season is over.
Being that the derivatives scam survived the 08 lows it's not out of the realm of possibility that they will monkeyhammer oil beyond 08 lows in order for the shakeout to be large enough and ramp the whole thing back up. Hard to imagine that they can pull that off again but they can do it until they can't do it anymore. But then there is China...
When the 42 gallon oil drum,is worth more than the 42 gallons of oil inside of it,you know that something is seriously wrong..
Saudi oil exports are expected to decrease. Bullish right? Wrong. It's a deand issue causing it.
US demand is up significantly, surging if you will.
http://www.eia.gov/forecasts/steo/report/us_oil.cfm
Sun,
ITS A TRAP. They Need to Unload its going down!! For National security of them, the proletariat will socialize the losses again.
And put your damn pants on man!
RIPS
Check out total wells producing and daily oil per well.
https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
Well totals through the roof and oil per well is on the low end.
This is from May 2015. Production stats through the end of 2015 will be interesting.
For a good laugh, look at what OAS did today. Which just so happens to be my fav stock that I'm riding to zero. Up nearly 20% and then red. All the poor longs on the yahoo boards are getting crazy.
They continue to blame growing supply, to cover the fact demand continues to tumble.
Because that's what you do when secretly leading the world to the edge of a cliff. They will preach march on ye marry men, until the second they yell jump!
And I saw among the naive, And discerned among the
youths A young man lacking sense, Passing through
the street near her corner; And he takes the way
to her house, In the twilight, in the evening, In
the middle of the night and in the darkness