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Crude Slips As US Oil Rig Count Rises For First Time In 3 Months
The US Oil Rig Count rose 2 to 574 last week. This is the first rise in rig count since mid August, continuing to track the lagged crude price. On top of rising production, surging inventories, and massive excess supply at sea, Crude is fading modestly on the news, hovering around $40.50.
First rig count rise in 11 weeks...
Pressuring crude lower once again...
Charts: Bloomberg
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Of course crude is slip, that is why crude is use as base for common lubricant.
I cant wait for them to be paying us to take it. Everything is awesome!
20s on deck. 35 feb 30 march 25 april......
RIPS
Missallocation of resource is primary product of central plan of state economy. Full throttle insanity.
Boris,
Its called looting with unicorn fairy money from a printing press. Pretty neat trick...?
Heres how it works...
The fed uses the unicorn paper to short sell commodities naked.
When it is at the lowest they can push it...you must watch the hands here...
See this pile of promises from liars....im going to turn it into oil they say....and do.
Then they personally pocket the asset.
RIPS
To quote John Pierpoint Morgan, "Buy when is blood in street, even if blood is you own."
And it's a good thing...I think an increase in friction is coming...
BOHICA!
All we have to do now is add 40 more drilling rigs,and WTI will trade at it's true value of $.48 cents a barrel..
Well, I hope you are right.
At that price, i'd want my own little Mad Max tank farm and refinery in my back yard.
ive completely had it with the fucking lies of CNBC. they keep parading that clown from RBC on tv who said 100 was the bottom before 90 was the bottom before 80 was the bottom before 70 was the bottom ... u get the drift.
jim cramer calling the bottom 3 times in the mid-40's ... how'd that work out?
oh, and lets not forget gartman saying he "has never been this bullish in his life" on oil at 47, up to 49, then imploded to where we are now.
im not a fundamental guy by any stretch (stick to charts since price and volume never lie) but in cases where te fundamentals are so glarring, u have to adhere to them. ZH is the only fucking place that has been telling the true fundamental story about oil & it breaks down to 2 segments:
1. oil exporting countries are going belly-up because it is their primary source of revenue & they have had ballooning deficits while budgeting for 70-80 $ oil ON THE LOW END. precisely why we are in a race to the bottom and NOBODY is cutting production.
2. NOBODY else but ZH is producing those ships floating around various oceans; columns of SUPER tankers (not just tanker, tankers) are waiting outside iraq waiting to come to the U.S., outside iran waiting to go to singapore, etc., oh, and that fucking parking lot outside texas. throw in the hedge fund story as to how all those guys who are long have the physical commodity on standby floating at seas praying that the price bottoms & stabilizes.
i can't friggin wait til oil cracks 40.00 and the fed is starring down the barrell of shotgun credibility next month & they have to shit or go all the down the pot. these clowns are so fucked & are going to go by the mantra "when there is no way out, the only option is to go deeper in". hope at some point we get real leadership who tells the truth about this debt, rips the bandaid off, and starts dealing with our REAL problems that the fed has been able enable-away for 7 years.
The marginal producers have to keep pumping at any price to get enough revenue to make interest payments to the banks....or it's BK .
http://www.reuters.com/article/2015/11/05/usa-banks-loans-idUSL1N13025U20151105
RAINMAN - and there-in lies the problem. the only thing that is factored-in to most of any of this debt (absent of real growth) is servicing of the debt. its 1 massive game of musical chairs in the debt market. im not sure if u trade fixed, but everything i read & everyone i talk to has basically said what ZH has been reporting on; the high yield market is a chunk of ice because nobody wants exposure to this shit. none of these bond managers are concerned with the principal portion of debt as they continue their "hunt for yield" ie. see puerto rico lol.
for that reason, when oil blew-up last year, i sold everything i owned; stocks, bonds, even my house (wasn't the only reason i sold that, but helped play into my thesis). without elevated prices, these guys are completely fucked - both the central banks and anyone holding debt on instruments with declining prices. just seems like a matter of time before u circle the drain, can't service any more debt payments, and have to send up the white flag on the principal you are going to default on (with oil prices not going higher anytime soon, gonna be ALOT of bodies floating in the water).
peter schiff is right about QE4 on the way & im of the belief the real $$$ printing hasn't even started yet. these clowns will NEVER admit fault and the only way i have ever thought this shit will stop is thru an act of congress where they strip the power away from these guys to keep doubling, tripling, quadroupling down on bad policy/bets. i was glad to at least see a guy like ted cruz endorse rand pauls audit the fed bill at the CNBC debate + he mentioned bringing back the gold standard. makes me think we MIGHT have a shot before its too late if the right guy gets in there. shit would hurt real bad but at least it won't be the asteroid collision we are on the current trajectory towards.
The coast is lined with tanker overflow and yet more rigs are going online? SoundS like ramping up for war.
And the blue ribbon goes to Xatos.