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WTI Crude Surges On OPEC Hope, Dollar Drop
As the USDollar plunges under the weight of short-squeezed EUR FX traders, so commodities are making gains. With OPEC right around the corner, WTI continues to bethe highest beta and has soared back to yesterday's highs on no news whatsoever (apart from comments from OPEC that they will only cut if non-OPEC cuts).
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The headline is wrong. WTI surges on the pump, soon to be followed by the dump. Get it together Tylers......
Yeah, this is a pretty common pattern of late. $40 to $42 round trip, rinse, repeat.
Oil is now a penny stock?
yes, and "snapchat" is a billon dollar company. How fucked up is that?
Gotta run those stops before the "no production cut" news tomorrow.
We know the world has accepted the concept of monetary failure when oil goes high...and keeps going.
Except for that, enjoy the manipulation roller coaster.
1 2 3 CHa Cha Cha
As the sphere of the hot war grows in the ME. Oil will become increasingly valuble.
In order for that to be reflected in the actual price, you first need actual price discovery.
don't hold your breath folks.
It's mighty damned hard to discover anything with their head that far up their ass......
Central bankers and financiers will be sacrificing themselves on the alter of fiat soon enough.
Everytime crude flirts with ~$40 range, someone comes out of the dark and propels it higher.
The largest drop in the dollar in forever, huge pop in the Euro and all ZH has to say is 'dollar drop'?
Seems to me this large movement might deserve some explanation.
That's why I dropped by but no luck.
Someone has had a sneaky look...or not so sneaky, at the Fed's report on rate hike...
It's Fed buying. The action is not for private party buying. The Fed has a direct long stake in crude prices and has been very aggressuve of late in propping up the market.
I'm confused because only a few months ago they said low oil was good? Did they lie then or have they changed thier outlook. Can someone explain? If what they said was true, then there wuold be no reason to prop up the oil market because low oil prices are good for the consumer? What am I missing?
Bank hacks said that who were told to say everything is bullish. For some time now, the US economy has been long crude oil prices.
It has very little to do with fundamentals and what might or might not be good for the economy. CL is now tightly linked to stock buying algos that kick in when it rises. Bring up a 5-min chart on CL and another on ES or SPX and you'll see that CL is commonly forced higher or lower in order to influence stock prices.
Today, for instance, CL spiked from from 40.1 to 41.78 (4.2%!) in 2 1/2 hours just to try to stabilize SPX as it was approaching its 200-day average. It was even briefly driven up past a trend line connecting all the tops since Nov 4 -- just for emphasis.
As USDJPY has seemingly run out of steam -- going sideways for the past year -- CL is increasingly the primary way they force stocks higher.
You can see some very clear instances of this from last week here: http://pebblewriter.com/tag-teaming-stocks-higher/
All 1oz Silver coins are €12 @ EurGold
https://www.eurgold.eu/silver/silver-coins/
It could be OPEC hope/dollar drop, or it might just be that it nailed the bottom of a very long-term channel as we pointed out yesterday...
http://pebblewriter.com/cl-tests-lt-support-again/
Someone explain to my mathematically challenged brain how the dollar can drop 2.5%, while the PMs, which are priced in dollars, barely move.