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Crude Tumbles After API Reports Surprisingly Large Inventory Build
After 2 weeks of solid drawdowns, API reports a huge 4.6 million barrel inventory build last week - the 2nd biggest weekly build in over 5 months. Crude prices are dropping on the news...
And as expected crude tumbled...
Charts: Bloomberg
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$1.99 a gallon gasoline around the corner for most of the USA (but never in NYC)
Or Western PA. Still around $2.35 here.
Of course crude is going down, Gartman claims oil has bottomed, which we all know means that it's headed much lower.
Not going to happen they increased all the taxes...
paid $1.87 for plus 10 miles from NYC...it is going to a $1.25!
These daily almost hourly price changes are a big joke.Can you imagine if your grocery store or any other industry had to change the prices up and down as often as the oil industry. Speculators and their bs news do nothing but slow down the real economy.Any wonder China wants controls. What about electricity and natural gas ,should they charge a different rate every day based on this crap. Yes things change fast but never as fast as bs financial news.
Why don't you just set the prices for us then you dumbfuck. I'm sure your knowledge of a "fair" price is better than the collective knowledge of the market and all its various speculators/hedgers/producers.
BTW, the prices of the foods in your grocery store are in fact settled in the futures markets. Wheat, pork, corn, soybeans- just to name a few.
Yes, sure inventory changes every day like a yo yo and in a meaningful way.
Evil Specualtors LOL!!!!!! Where is molecool when you need him?
no kidding...was just reading about how China has a glut of desiel....what does that tell you? Way too much supply and these commodity firms are going to go belly up. The banks have pullled the unlimited FED money pit rug out from under them. The price is going back to supply/demand...around $30-$40/barrel.
and so it begins. there's usually a build in the fall but to start from these inventory levels and before the end of september could be an ominous sign.
the commodity barons stocking up ?
I want to see $20 berral oil. But it will probably be $80 by this time next year.
If crude went to $10.00 and gas was a buck, every state in the union would slapping taxes on left and right.
No way in hell Joe Sixpack will ever get a break, in big gubmint land!
Is WWIII right around the bend to shore up these prices with bonus emp to erase evidence of bank fraud?
Very weak demand despite the robust economic grote.
Paradoxical!
Every week it's either a "suprisingly large inventory build" or a "suprsingly large inventory draw down". At no point do these forcasters ever seem to be able to forecast. It's always a surprise to them.
I don't want to create any problems for anyone, Lord knows especially not the banks - so if you'd like, I could just start my car and let it sit idling in the driveway round the clock. Maybe I could just drive around 24/7 - just go from the east coast to the west coast and back and forth? I want to do my part and get that excess down.
Many of the commenters here today seem to have a blind spot, namely the assumption that somehow the price of oil is "pure" and not manuiplated in some way.
EVERY market is rigged, even oil. Oil is now clearly being rigged to the downside, the Saud's are pumping at a loss to clear out the US Frackers, and the government is letting them casue it hurts the Russians. There have been many articles on this here at the hedge.
I don't know what the price show be, no one know what the price should be, there is no price discovery in a rigged market.
The frackers may have been helping out a tad in the way of flushing the market with oil to hurt Russia also. That miracle oil was really expensive we just haven't paid for it yet. The US even has Iran's oil coming on line after lifting some sanctions. If this is the case it was a massive multinational effort to sink the Russians and they chose the approach of an economic downturn for the time to strike.
Funny thing is it doesn't seem to be working, at least not in a timely fashion.
I disagree. Not that there isn't manipulation but that your example is not manipulation. KSA wants something. They are willing to pump and sell more to get it. For oil it all seems pretty simple. The supply is up over demand so the price comes down.
This in no way speaks to motivations or manipulations of other factors by any of state parties involved. For example, why the US is going along with it in addition to global efforts are fuel efficiency and such. Things change. Sometimes appropriately. It may be more accurate to consider that maybe prices were being manipulated to the upside previously.
I am thinking along similar lines only slightly different. Instead of Saudi wanting something they are requiring something for their service. As they lose oil profits pummeling Russia they expect compensation. Russia is serious competition for the Sauds long term.
In this scenario they would've been likely to have manipulated the the price upside previous to the collapse also. Some things don't fit that scenario though, for the life of me I still can't figure out why the Sauds are doing massive deals with the Russia on the side. Maybe hedging their bets.
still $2.95 for 87octane unleaded here in silicon valley taxafornia
Low oil price huts Russia? If Rubel haven't plunge? Gazproms now will be in really big trouble.
Russian oil PRICED in rubel (inside Russia) when gazproms sells it it received in INTERNATIONAL CURRENCIES (which is priced higher than rubel). Russia companies pays their TAX in....??? RUBEL!!
http://oilprice.com/Latest-Energy-News/World-News/Weak-Ruble-Insulating-...
With Russian rubel plunging? (Thanks to EU/US investor trying to SHORT rubel, in hope it would be DOUBLE WHAMMY for Russia.) Gazproms actually pays LESSER TAX to Russian govt, since they received EURO/DOLLAR/YEN which when converted to RUBEL? It gains so many conversion advantage!!
Here, WHY Russian oil/gas company perform BEST this year.
http://www.rt.com/business/314793-russia-oil-companies-top/
And since because Russian companies "worries" they can't services their DEBT priced in EURO/DOLLAR? Last year they start paying this debt EARLY! And hence you see this Russian external debt curves like this:
http://www.tradingeconomics.com/russia/external-debt
Now, because companies pays their debt early last year? This year? Their outstanding debt matured this year is only this much:
http://russia-insider.com/en/business/why-latest-ruble-fall-will-not-der...
Now, with Russia Current Account in POSITIVE numbers? Their FX Reserves, could only goes UP!
http://www.tradingeconomics.com/russia/current-account
http://www.tradingeconomics.com/russia/foreign-exchange-reserves
So as long as EU/CHINA/JAPAN/INDIA/AMERICA (Yeah! Your country purchase A LOT of Russian goods!)
Here's the link:
https://www.census.gov/foreign-trade/balance/c4621.html
(NOTE: How US GIVING DOLLAR to Russia? Your govt trade with Russia is ALWAYS DEFICIT. See that data from your OWN govt).
Russia still get MORE INT'L CURRENCIES than it bleeds. And that's what constitutes a HEALTHY nations.
Asof Russia GDP contraction? Where in the world that doesn't have GDP contraction (even when govt data are DOCTORED out?). We have global contraction of economies. In this interconnecting world economies, are expecting you're not affected by it? Even when you govt printing money like crazy??
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As of price discovery of OIL? I ALWAYS look at comparison of HOW MUCH OIL PRICE at a certain times.
http://www.statista.com/statistics/209641/average-annual-spot-price-of-w...
With report whether one's oil company post a PROFITS or LOSSES at the same time.
http://www.tampabay.com/news/business/energy/exxon-mobils-2009-profit-of...
http://www.tampabay.com/news/business/energy/exxon-mobils-2009-profit-of...
So, do you think EXXON get PROFITS or NOT? At that 61 US$ oil per barrel "price discovery"??
Again with Saudi.
http://oilprice.com/Energy/Oil-Prices/Saudi-Oil-Strategy-Brilliant-or-Su...
Or with Oman.
http://www.dw.com/en/continuing-low-oil-prices-cause-crisis-in-oman/a-18...
These 2 country HAS exchange rates in which THEIR CURRENCY enjoys HIGHER VALUE (unlike Russian Rubel) in exchange. So with the LOWER oil price currently? How these 2 a doing??
Oh don't worry. This oil price will go to at least 26 US$ (like my previous comment in ZH). Don't expect an increase before we hit that mark.
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I know low oil price and the "dumping" of Russian currency are intended to HURT Russia. No doubt about it. However, this 2 (TWO) events actually, becomes a BLESSING for Russia itself.
Aren't ZH reader most you works/have a degree ion economics?? Shouldn't you look it more clearly than i am (i don't have a degree in economics)??
+1
Is that you Vlad? I wanted to tell you that I really loved it when told everybody John McCain was crazy.
Yes, Hedgers are aware of the backfire of our idiot politician's attempts to damage the Russian economy. All wars are bankers wars.
30 cents is a "tumble"? Really?!?