WTI Crude Crashes Under $30 After EIA Cuts Demand, Increases Production Forecast
In yet another hit for the energy complex, EIA just cut their global oil demand forecast to 95.19 million barrels a day this year (down from 95.22 million in December’s outlook). The energy agency also increased its forecast for global production to 95.93 million barrels a day (up from 95.79 million last month). This pressured WTI Crude back off a brief bounce and pushed it to a 20-handle at $29.97 for the first time since December 2003.
Despite a short-term bounce after Jeff Gundlach suggested today would be a short-term bottom in crude,
Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital and was prescient in his call for lower oil prices last year, said oil has hit a short-term bottom on Tuesday.
As oil prices per barrel flirt with the $30-mark, Gundlach told Reuters: "Fundamentals are lousy but the technicals call for a short term bottom today."
we reverted back lower after this:
- *CRUDE OIL PRICES COULD DECLINE FURTHER, EIA'S SIEMINSKI SAYS
As Nanex shows, all the sub-$30 stops were instantly flushed (or the HFTs removed all liquidty)
Carnage!
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Party time....
We are approaching break even for Kuwait and SA.
This is getting out of hand.
You hear that? Shhhhhh. Listen, it's getting closer.
War drums.
must have oil crash in order to remove petro dollar and install new global currency by 2018, according to reptilian Economist rag.
In order to restore proper supply and demand ratios we must move to negative oil prices in the short term - for the good of the economy.
/sarc (apparently it's not always obvious)
How hard would it be for Iran or Russia or even Saudi to pull off a false flag and sink a VLC tanker in the Straits of Hormuz?
The price is low because the owners of the planet want it low... until they own it all that is.
Let the piratisat... errr... privatisations begin.
Yep, just like they are getting the mining juniors to sell assets, or shut down, or get bought out...
Its predictable, but damn, its nice to think that real, actual markets exist, as opposed to the crap we actually have.
We are going to have commodity shortages of all kinds, all because of the broken market (read: fixed, manipulated), in the next 18-24 months.
No it is not. This is what happens when you build infrastructure world wide at $100 a barrel or more and expect it will last forever. This is how a reset will look. It cleans house.
Oil is still $15 a barrel expensive.
Citation?
Figures I've seen put marginal production cost for the Gulf states over $40 ... and that was 10 years ago, with a CAGR of around 10% and growing.
That SA has been selling below-cost is widely accepted, I'd be very interested to see something credibly stating otherwise.
"On the other side of the coin, Saudia Arabia and Kuwait can pump a barrel of oil for less than $10, on average. Iraq can produce oil for about $10.70 per barrel."
http://money.cnn.com/2015/11/24/news/oil-prices-production-costs/
Of course that's CNN so there isn't likely to be much credibility to the numbers...
Im calling for free oil
+100 best post of the day
Anyone want to open book on when the "1 handle" deluge of stories will begin?
Oh, later today I would imagine
Wasn't there a story posted this morning about oil going to $10/bbl?
Hidden Front ... I saw a couple today. Oil market is an absolute joke. Moreover, the number of tankers outside of Galvaston, TX has been very high for last several months because there is no place to put the oil. Makes one go hmmm ....
Once everyone goes bankrupt, it will be time to get long again. Not quite yet.
BORING!!!!
Oil has hit lots of short-term bottoms in the last 18months or so.
Whoopee shit.
Decay usually is; a bit like watching paint peal. Collapse on the other hand tends to get rather exiting especially at the point when the whole rotten façade slips off into the abyss.
Another guy stating his opinion as though it is fact only to be proven wrong minutes later.
When OPEC will get "2" p off
Funny.. and yet, silver goes down on lack of supply and increasing demand...
All the juniors aren't quite bankrupt just yet... Close, though!
so which happens first? fed capitulates & changes course on another rate hike this year OR goldman sachs "revises" its 3% target on the US10-year?
It's on.
Eat shit and die frackers! The forest laughs at your impending bankruptcy. It also hopes your BMW is repossessed in the middle of the night.
Free barrel of oil with every baank account opened.
The banks only use is to put you over it...
A guy with a local radio show bet his cohost that oil would hit $25 before Feb. 1. Looks like he may actually win that bet.
Wait, you just posted an arrticle that says oil must rise ... very confusing.
Tylers didn't write the 'Oil Must Rise' story. They just posted it up as counter-point. They do that sometimes.
Don't bother trying to spain. The guy has been here for over 5 years he knows the deal.
Yeah, OK. Needed a tag, or somethng.
The price of Oil will rise after all of the small producers are bankrupt and their assets are acquired for cents on the Dollar.
About a year from now, perchance, or two.
But rise it will. And the large corporations, who can weather this storm, will have squeezed the small producers out of competition. And that is who will buy up their small producers' claims and rights to the fields in a Bankruptcy proceeding.
See my analysis here, Dr. Engali...
http://www.zerohedge.com/news/2016-01-12/arthur-berman-why-price-oil-mus...
It was some tree hugger who is net long oil with Andy Hall.
Also see.."Cocks must rise or the species dies"...
Speaking of handles, I'm looking for a 14 handle on BAC and an 18 handle on the S&P, today. No 3:30 bounce. Shit is actually now out of hand. Remember that unscheduled meeting of the Fed around Thanksgiving, that turned out to be for a policy issuance, to wit: in the event of a serious financial crisis, there will be no bailouts of financial institutions.
I'm for all of them to fail, at once, but if they go one at a time, I'd like to see, in order, Bank of America, Citi, JPM, Wells, and really, really wishing here, Goldman Sachs. Remember, GS became one of the club - a bank holding company - in 2008 on a one-day notice which saved their ass.
See here: http://www.marketwatch.com/story/goldman-sachs-morgan-stanley-to-become-...
While i shhare your dream, and to see Lloyd Blankfein's shattered corpse at the bottom of the GS building after he jumps too his death, it won't EVER happen as long as mark to model is still around...
All small businesses should all use the mark to model mechanism when doing our taxes. Value stuff with 15-30-year depreciation at absurd levels and take the deductions annually right off the profit.
Yep, my barn is actually worth a couple million. Ya got a problem with that?
Drill Drill Drill! (my ass) - Larry Krudlowe
'This is a threshold moment Johnny' Toecutter Mad Max
Oil's going to $0.00, just like precious metals. Stated another way, no amount of USD will be exchangable for them.
BTFD?
PPT.... must have positive indices...must not fail.. must pump for Presidents speech..
Gasoline ally
Which reminds me of another forum where I hang out.
Someone posted a question:
"What did David Bowie do when he was your age/"
To which I immediately replied
"Died."
Can the price of oil go to $10? If there is no storage and the flaying shale producers need to produce revenues, it's possible.
As of the 8th Cushing had 9 million barrels of capacity left of 74 million. This time of year the refiners do maintenance, so that may be related, but if Brent gets cheaper the refiners may have a competing devaluation war on their hands.
....lol.....Electric cars may have far less shine on them if that happens.
http://newsok.com/oklahomas-oil-industry-continues-to-slump/article/5471...
Must close green today
Obey your Leader
Cry for his greatness
Why does a low price per barrel present a problem (for anyone other than those who need a high price to pay for loans)?