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Copper & Crude Carnage Continues
Perhaps at the margin, weak Japanese GDP - as it heads for a quintuple-dip recession - could be today's catalyst but both crude and copper prices are re-tumbling this morning, pressing cycle lows. The USDollar is drifting higher and dos not appear a major driver today. However, broadly speaking malinvestment-driven overcapacity and the collapse of fake credit-fueled demand continue to provide the backdrop for commodity carnage...
"One overall big fundamental thing is the market is still heavily oversupplied, with OPEC still flooding the market,” Andy Sommer, an analyst at Axpo Trading AG in Dietikon, Switzerland, said by phone.
“If the Chinese economy is really so weak, and weakens further and takes with it other Asian economies, then the demand recovery forecast in the third quarter is adrift,” said Axpo’s Sommer.
The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for OPEC’s oversupply in the past six months, Iran’s state-run Islamic Republic News Agency reported Sunday, citing the nation’s OPEC representative Mehdi Asali.
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when oil goes no bid it will be, er, interesting.
From the producers' perspective, it already is.
Demographics are an evil bitch! Throw Kenesyian utopian debt policy on top and you have a real shit sandwich
Combine demographics with major over capacity in every sector thanks to ZIRP and the malinvestment that comes with it and you have a recipe for collapse.
Although I'm part time by choice, I keep going to work and come home and keep wondering when this bucket of shit is really going to tip over?
The elevation of the charade by the sheeple is amazing. I truly believe you are right. Collapse will happen and we are all going to get covered in the filth.
Come on beautiful -- under $40 under $40 under $40.
Oh come on for pete's sake. Other than a few commodities being down - everything else is awesome right guys?!? Awesome right? Guys? Hey!!??
My 2 cents ...had a boat hull I sold over the weekend...at the storage yard Ikept it at there are quite a few travel trailers , but one set up in particular stands out ...a F250 loaded with a huge 5th wheel camper ...total rig has to be 130k or better ...it just sits...This is Lafayette La the oil service sector and just boggles my mind that every time I stop by in the past 2 years that setup is clean as a whistle but never moves...must be a big fish in oil here...otherwise everywhere you look those campers have for sale signs...
it also has a full tank of gas and food for 100 days - waiting for the exit to dodge when the call comes
Nothing says roaring global eCONomy like deflating commodities. Better raise rates and quick.
Quick? Everyone who counts is on vacation. It is August.
But but but, the Hope and Change....
I'm in the oil business... and making off DWTI at the moment. Suicidal?
This is disastrous for Venezuela and President Marudo specifically.
Venezuela is suffering under crippling shortages of basic goods. The government cannot sell enough oil to buy those goods so there is large scale rationing.
It never ends well when the people ask for a centerally planned economy ruled by dictator/oligarchy/central committee.
As Margaret Thatcher noted: "Socialist governments traditionally do make a financial mess. They always run out of other people's money. It's quite a characteristic of them."
You are all mistaken.. Demand is not weak.. its just that supply it too strong.. yaa right
Things are now in the process of rolling over.