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!
(5 votes)
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I have a couple of acres available for anybody wishing to store their oil. You tell the code enforcement officer that you're putting tanks there. I'll just say I didn't know.
My libtard naighbor says it's because of Tesla and Solar panels! ?
I'm gonna have to move!
When the Feds opened up by allowing exporting of US production, Brent quickly dropped, creating competition. With US frackers losing money below $50/barrel, and high debt margins, against extremely short well life, funding for further production doesn't occur. Frackers are dead, and they know it, the banks that funded them will be left with the failures.
There needs to be higher oil prices, which usually means a war suddenly happens. So at this point barring a war the price is heading to $10.
Maybe demand will pick up when the price goes negative?...I told you I don't want anymore of your fucking oil! ok give me 20 bucks and i'll take a couple barrels off your hands and hurry up with my fucking big mac and fries you fucking punk. lol
Tell me again what the incentives are for buying an electric car, installing solar panels on my roof and spending tax dollars on wind 'farms'?
Short of war....it's going down! I can't believe the size of all the new oil rigs, ships etc. This is going to be epic. 40 years ago I read a book about a man who hauled pig iron on the Erie Canal. He made a fortune playing the futures market on pig iron. Along come his son who had endless math formulas he used to trade pig iron with. He lost the family fortune over a decade. He spent the second decade trying to figure out what he had done wrong. The third decade he made the family fortune back. How did he make it back? He bought when the price seemed low. He sold when the price seemed high. Really complicated. To think oil can not go to $5 and stay there for an extended period of time is ridiculous. The decade the man spent trying to figure out where he went wrong. Sugar was under the cost of production for the whole decade. Farmers play the futures market. They could tell you stories forever.
The Japanese over produced what the world could consume. They are still suffering. What they did is small potatoes compared to what the Chinese did.
If you live in the USA it seems everyone is financially starving. It seems the thing to do is send out bills...some people will pay by mistake. It's really becoming a nuisance.
OPEC is steering this ship. They have 80% of proven global reserves so they control the market. The current state of affairs is all the proof you should need - if you want to reduce dependence on foreign oil, you have to reduce dependence on oil period. We cannot drill our way out of this problem.
See what you did with that word "crashes" today?
Why... Chinawantsto sell CNY, only to be shorted by HK peoples? And THEY pocketed the margins. W/o doing anything?
Not gonna happens.
HK seems like wants its mother. Cause HK don't want Shanghai to becomes the new polar in economocs.
Dual system in 1 country apparently doesn't work for China. I suspect in median terms, China would have to "integrates" those greedy HK, from messing with central planner..
What are stops and what does it mean that they were flushed?
What are stops and what does it mean that they were flushed?
We are all going to fucking die.