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Dow Dumps Over 300 Points From Thursday Highs After IEA Warns Oil Glut To Worsen
'As goes oil, so goes the US equity market' appears to bethe new mantra. Just as yesterday's pump-and-dump tracked oil, so in the pre-market, WTI Crude plunged back to fresh 7-year lows after IEA warned that the oil glut will worsen, with prices lower for longer as demand remains subdued through at least 2017. This in turn sent US equities tumbling with Dow futures down 200 points (down 330 from Thursday highs).
Spot the difference...
As Crude's plunge was triggered when the International Energy Agency (IEA) warned global oversupply could worsen in the new year. As Reuters reports,
Brent slipped below $39 per barrel for the first time since December 2008 as the IEA, which advises developed nations on energy, warned that demand growth was starting to slow.
Prices have tumbled this month after OPEC failed to impose a ceiling on output. OPEC producers pumped more oil in November than in any month since late 2008, some 31.7 million barrels per day.
"Consumption is likely to have peaked in the third quarter and demand growth is expected to slow to a still-healthy 1.2 million bpd in 2016, as support from sharply falling oil prices begins to fade," the IEA said in its monthly report.
Should sanctions on Iran be lifted, its exports could rise, adding to the market's oversupply.
"The next quarter is going to be particularly tough as we go from a high-demand to a low-demand quarter," said Richard Gorry, director of consultancy JBC Energy Asia.
"Can you rule out $20 per barrel? No, you can't," he said, although adding that prices would not likely fall that far.
The Dow is now down over 300 points from yesterday's highs...
And not hel,ping the US credit market,
"There is evidence the Saudi-led strategy is starting to work," the IEA said, referring to the producer group's decision to maintain high output to safeguard market share.
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Self help in 3...2....1
Even or green by the day's end then...
The next headline: "Oil Surges On Largest Inventory draw since Lehman"
Now that everybody is colloborating greedily in the paper oil short, I expect oil to reverse up.
Which is why everyone doubled down on their longs.....prepare to die.
I see plenty of knife catchers
The shorts all got squeezed earlier in the week, did everyone forget that already?
Bullish for oil companies
or false flag in 3...2....1
Buck sixty something a gallon in Iowa. Not much more than a gallon of water in a jug. Gotta be close to all time low at the pump.
but, but, but, chevy volt, tesla, leaf; er uh go green save money save the world global warming; b husssein said so
And it is killing Russia, the TeeVee said so.
(Do I need the /s tag?)
(Do I need the /s tag?)
Ummm......no.
$1.69 gal in Seneca south caroline. Just over the border from where I live in GA.
Hell, I live at the beach in SC, gas $1.64 here already at several stations.
Got it for $1.57 in South Haven, MI two weeks ago.
This is a blessing for a family with four teen/post teen drivers.
I thought I was lucky at $1.89 this morning in the Socialist State of Minnesota.
I Used to drive by OLD CLOSED down gas stations that still had their price boards up advertising dollar plus GAS. I was always amused thinking that we would never see those prices again.
For some reason, I was watching 'The Andromeda Strain' movie on TV the other day. That movie was made in 1971. As the scientists were investigating the town where an ET virus had killed the population, they entered a grocery store where the sign on the window was advertising "PORK CHOPS" for 95 cents a pound. I paid $1.38 a pound for PORK CHOPS the other day... What was gasoline in 1971?, around 30 cents a gallon? Anyway, that's just a little obtuse perspective (&/ of course, that would have been just prior to the abandonment of 'Bretton Woods').
pork chops and applesause.............
I fucking love that movie. It is basically the complete opposite of what science-fiction / fantasy movies are today. Fuck "The Avengers".
Now get out there and sign up for ObamaCare with all that money you saved you worthless serfs! We're trying to create Jobs! Jobs! Jobs! around here.
Ungrateful maggots ;-)
I've been joking with friends about this, oil goes from $100 to $40 over the course of a year, who cares. Oil goes from $40 to $36 and now THAT is what is causing the market to tank, that is the problem with everything.....
I wonder how much American Hero’s, Zukerberg & Buffet will lose today.
All that cheap ISIS oil on the market must make GS jizz in their trousers with how easy it'll be to manipulate paper energy trades.
no cold, no need for BTUs.
Gotta have cheap oil for WWIII.
Bet Christmas sales are BOOMING with all this cheap gas. If we could only afford Health Insurance
I can. Mine only went up 10%, mainly because our company went with a better plan from a company that gives us more access to different health care providers.
So...
So go see your doctor and get that hangnail taken of. With luck you can kill that $10,000 deductible in one fell swoop.
Price per gallon went UP 26¢ late yesterday in northern MI. 'Sup with that?
The weekend, dude. Gas usually goes up on Thurs or Fri, for the weekend travellers.
Stupid ass Saudis. What good is market share if there is no market?
The US has allowed the Saudis to continue this onslaught of oil that has destroyed the existence of the highest paying jobs created since Lehman. They are destroying the energy sector. Government, the biggest destroyer of jobs. Unions, #2.
So much for energy independence
By design.
The Saudis are such good allies. They create wars and destruction which endanger lives, poosible start WW III and put American military in harms way. They also destroy American jobs.
The US becoming energy independent was always a fraud, just like the US Shale Ponzi. It was all concocted by teh US TBTF WS Shale Portfolio Cos that had access to the infinite sums of Free Taxpayer Monies thru the Fed's Discount Window.
I warned of this. I am a PE of Upstream US E&P Co.
This country is gonna jail the Fed and its' member-owner TBTF WS Bankers or they will own 100% of this countries' wealth and the Citizens will own teh Debts associated with those stolen assets. it's coming.
they lose money with every barrel sold but they make it up in volume...
haha just kidding, their production costs for onshore oil amounts to $3 per bbl... good luck to the rest of them racing _that_ to the bottom to acquire or even keep market share... too fucking bad for all y'all who can't stand the Saudis, but their plan _is_ working...
Lower the price, the faster shale companies have to pump to meet the debt bills.... When the bankruptcies begin rolling in...thats when the big poo hits the fansky. Large oil companies just licking their chops at the cheap leases that will pop up.
JPM Head Quant is right?
could today be that day we have all talked about?
crashing oil,putin amped up sable rattling...all coming together..today
Has Black Friday arrived ??
You ought to hear farmers talking about trying to raise their corn and soybean yields to offset plummeting corn and bean prices. lmfao....You can't fix stupid...of course all the input costs of fert, seed equipment are on the rise....I farm 1,200 acres....and there is no doubt the safest thing to do in 2016 is to not even go to the field and preserve what cash I still have.....going out there knowing to try and minimize a guaranteed loss...I mean WTF?
you'll forgive me if I don't shed a single tear for the "poor" farmers, who are subsidized to their eyeballs by Uncle Sam... of course it pays better to let the fields lay fallow when Uncle Sugar pays you to do it... sorry, no sympathy here, I come from a family of "poor farmers" and the money they rake in year after year regardless of crop choice and yield is frankly ridiculous...
You're a fucking idiot and a liar....because not a single thing you said about raking in the money regardless of crop choice is absurd. You're not from a family farm either. That is the first clue to your stupid ass comment.
Interesting times are upon us. I feel it in my blood.. Could anyone make a nice topping by assassinating the fucking faggot monkey bath house pervert or the fucking psychopathic piece of inhuman shite hitlery.
Preferably long and slowly using piano wire and flesh cutters/
Time for some popcorn and settle down to watch SPXU and SQQQ make me rich as Ive been building all year waiting for this
With so much media attention on lower oil, one could expect a rally in oil in the near future to take out all the short sheep.
The indexes haven't gone anywhere for several months now. just bouncing back and forth. Same as bonds.
However, at some point there will be a real movement. something other than a few hundred points. something in the thousands. the DC dolts can't see it, but all of america knows it. shit is bad, it's only been propped up by the printing press. and of course, noone on main st has access to that fresh money. most of america has been in a depression for the last 7 years. eventually, it will catch up with the assholes in washington.
$1.35 per gallon this morning. Northern IL.