This page has been archived and commenting is disabled.

The Real "Death Cross" Of Oil Markets

Tyler Durden's picture




 

The 'death cross' of these two energy market indicators is all one needs to know about the oil market...

 

As Bloomberg notes, total industry oil stocks reported by the International Energy Agency rose for a third month, increasing by 0.5 percent to the highest on record at 2.99 billion barrels.

China’s Beige Book, released last week, showed further economic deterioration in one of the world’s largest commodity-consuming nations in the fourth quarter.

*  *  *

Until these two indicators change direction, lower-er for longer-er will remain.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 12/21/2015 - 14:17 | 6949710 Big Beta Bill
Big Beta Bill's picture

So this is a demand story?

Mon, 12/21/2015 - 14:31 | 6949763 Dr. Engali
Dr. Engali's picture

Yes, it always has been, and that's what happens in a depression. Anybody who says anything differently is just full of shit.

Mon, 12/21/2015 - 15:32 | 6950009 Ghost of PartysOver
Ghost of PartysOver's picture

The Doctor needs to tow the party line.  This is not about traditional oil demand, this is about the transition to green energy to prevent the destruction of the planet via global warming thereby reducing the demand for all hydro carbon energies..  The world economies are fine.  Come on, get with the program.

Mon, 12/21/2015 - 15:52 | 6950077 alphahammer
alphahammer's picture

 

YES its a demand story. And one FACT that you won't hear around here is that that "PEAK CONSUMPTION" in OECD countries occured in ~2005. Yes you read that right 2 0 0 5!

Every single day we need less oil around the world. Every single day. Yet Putin "big dicking" this thing just pumps more "to teach Saudia Arabia a lesson"

Brilliant. Completely brilliant...

Mon, 12/21/2015 - 14:29 | 6949756 Dr. Engali
Dr. Engali's picture

That chart made me dizzy.

Mon, 12/21/2015 - 14:35 | 6949779 commie
commie's picture

Guess things are not so rosy for Russia after all. Yeah, they're pumping more oil but getting less and less for it. 

Mon, 12/21/2015 - 15:06 | 6949911 Bastiat
Bastiat's picture

And so are the Saudi's and the rest.

Mon, 12/21/2015 - 16:08 | 6950158 Hohum
Hohum's picture

It's F Troop.

Mon, 12/21/2015 - 14:44 | 6949824 GotNuttin'todo
GotNuttin'todo's picture

Well duh! Kinda like saying when the sun comes up, it's morning.

Mon, 12/21/2015 - 14:54 | 6949861 sun tzu
sun tzu's picture

The oil bulls will be flattened before we see bottom

Mon, 12/21/2015 - 14:58 | 6949870 underman
underman's picture

Like they're not already??

Mon, 12/21/2015 - 14:59 | 6949877 Pumpkin
Pumpkin's picture

Looks kind of deflationary,

Mon, 12/21/2015 - 15:25 | 6949984 froze25
froze25's picture

Everything happening is deflationary, Long USD short everything else.

Mon, 12/21/2015 - 15:23 | 6949977 Dragon HAwk
Dragon HAwk's picture

Didn't China stuff their strategic reserves, when the price started dropping..

 that had to cost them a pretty penny, when it kept dropping further,

Mon, 12/21/2015 - 15:49 | 6950068 alphahammer
alphahammer's picture

 

Wait! Aren't we being told that China is buying every drop of oil Putin can pull out of the ground?

So who is lying?

Putin all smirked up saying China has his back?

OR

China being China which means they only/always look out for China?

Gee, wonder which one is lying... 

Mon, 12/21/2015 - 16:07 | 6950152 Hohum
Hohum's picture

You forgot the other death cross:  cost to extract a barrel and revenue from each barrel.

Mon, 12/21/2015 - 16:11 | 6950179 kaboomnomic
kaboomnomic's picture

China YoY decrease 2% from precious plis increase?

Geez.. can't read chart?

Let's see.. China still has POSITIVE birth rates.

http://www.nature.com/news/china-s-birth-rate-won-t-be-dramatically-affe...

So next year china population would still increase. Meaning this is the NEW consumer for energy.

Next, everyone knows about hlw bad smog pollutions in china, right? You know WHY that happens? Cause they still depends so much from coals type of enwrgy.

Well.. now China middle class and upper start making a fuss about this pollutions? What will china do to decrease this polutant? Replace coals with Gas and OILS.

So WHERE the nearest source of GAS & OIKS producers from China PoV? You can EASILY RETROFITS any coals burning furnace (for smelters, heat generations, electricity generations) into gas furnace in notl time at all.

And that is why China makes deals for energy to Russia.

Still can't see it??

Do NOT follow this link or you will be banned from the site!