WTI Crude Plunges Back To $30 Handle - Drags US Stocks Lower
Crude carnage continues and despite the best efforts of the USDJPY pumpers, US equity markets are tumbling along with oil (and copper)...
Remember when China was "fixed" overnight?
Yeah - no!
(5 votes)
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This is the sort of genius only CNBC can report ... some dude from raymond james "oh i think oil could see a 20-something handle". Errrr its $30.66. Thanks for that genius...what a bold call... it could drop 67c more... idiots....
Could it be why a bomb just exploded in Turkey to drive prices up? Or is somehting more sinister at work?>> http://bit.ly/1SpGAhB
good advice, that number one: "question everything". too bad the rest of the site is not up those standards. including the usual anti-popism
so the counter-question is: does a PKK - which is the most likely one - bomber in Turkey care about oil prices? perhaps, and perhaps not
the location of the bombing looks more as a way to hit Turkey's tourism industry
What Ghordius wants to say:
Question everything except the central EU narratives!
Kurds sure as hell care about crude prices. Kurdistan's independence is not financing itself. (It finances most of their enemies too.)
If they wanted to drive prices up, they'd hit either a Gulf oil pipeline, hub, or tanker transiting the Strait of Hormuz, Bab-el-Mandeb, or Suez. Funny that hasn't happened. Real funny.
They need some new excuses. Oil and China are getting shopworn. Time for Greece to pop up again?
The green shirts can't seem to keep the score up.
Another poster earlier on another story (forget which one) called it for 12:30pm and I took note because I could see that he/she kept the faith. A little early but hey.
edit: poster was Poland Spring and said lets see what happens at 11:30.
http://www.zerohedge.com/news/2016-01-06/thats-bottom-oil-market
Screaming at the charts --- SSSSTTTTOPPPPP ALREADY ---- PLEASE...!!!!!!
An explosion in Turkey does nothing to adjust the fundamentals or supply of oil (or stocks).
At least we know the first drop was not a 'mistake' now.
How to invest like Bond. James Bond https://www.youtube.com/watch?v=Sj5egC0dMLA
its' going to bottom soon.. armstrongs computer says so.
Armstrong has been the most accurate adviser for several years. I like him but I think the price of oil will be determined by war. Just like the Turkey attack news this morning. The real story is why was the world paying over $100. The industry has excellent PR people.
Price of oil will be depending on the strength of USD at this point.
Looks to me like it's nearly time to start writing oil puts around the mid-$20s...
sorry but the premise of this article is entirely wrong. falling crude & energy prices are not bearish, in fact, it is more bullish than anything. reduced energy costs positively effect the bottom lines of pretty much every non-energy producing company on the planet. Additionally, cheap energy positively effects the overall budgets of 99% of the households on the planet, thus leaving more money for other purchases such as food, incidentals and (dare I say it) savings or debt reduction.
The "premise" of the article is that fundamentals are useless. Anything and everything can become a lever to prop up the US stock "markets". Nothing else matters.
Thank you for your simple-minded, textbook-economics analysis... now, would you like to join the real world?
It's more complex than that...
Oil drop is combination of falling global demand versus increased supply (courtesy of Saudi Arabia's suicidal game of chicken with US shale and OPEC cheaters). The demand side doesn't care about price of oil, just like it doesn't care about price of credit. The global economic engine is well and truly flooded with debt and a "clearing" is required. Since Central Banks have decided that a global mass bankruptcy and depression cannot be allowed the only avenue left is global reflation. So far recent efforts have been thwarted by Chinese Deflation exporting bomb. Eventually they will turn on the U.S. dollar.
As far as Oil, only question is how far Oil will pop when Saudi's decide enough is enough. Makes sense to nibble away at producers at current levels if you have a long-term view.
i know exactly why oil prices are dropping but since you're all reading impaired, I'll repeat what I said for your benefit. I don't buy the notion that falling oil prices have anything to do with why stock prices are falling. They are mutually exclusive and the fact they are falling at the same time is coincidental.
Don't forget the USD margin calls on foreign carry trades that used oil as collateral in lieu of limited UST supply due to QEs...
Bullish my ass. My fuel costs for farming 1,100 acres has been cut by 60%, yet the commodity crash still has our 2015 income reduced by 45%. I am buying nothing. Alot of local busnisses are watching the snowball heading down the hill right toward them. Laid off all 3 of my full and part time help. My Obamcare Health Premiums have tripled to $ 1,200/month for just myself....still waiting for the Lying sack of shit's $ 2,500/annual reduction. Fuck Obama, Fuck Congress, Fuck the Fed, Fuck Central Bankers and Fuck Wall Street. Fuck me. We're all fucked.
Dude, we've covered all this crap before, none of your pro-low oil BS is going to make any difference.
Cheap energy? What is this you speak of? In Natgas? Surely not for home owners since those contracts were signed a year ago. I'm seeing just as high prices as I did over the last couple of years. Home owners are being taken to the slaughter by energy providers (think Uncle Warren) like Mid-Am energy.
As for cheap gasoline, it hardly makes sense how cheap gasoline is when you don't have a job and you lost it because you were perhaps working for something related to oil and gas or something that supplied something to oil and gas.
Low oil prices are categorically not good for the economy. Oil and gas production does not exist in a vacuum, there are already downstream consequences from low price oil...
Top 10 Mega-Caps:
Google
Apple
Microsoft
Berkshire
Exxon
Amazon
GE
Facebook
J&J
Wells Fargo
Of these companies, which ones are positively affected by an oil price reduction (in any meaningful way)?
Let's see. Oil is down over 70% since the summer of 2014. In the same time, the S&P is...in about the same position now as it was then.
Yep. Oil keeps on dragging down stocks.
And now looking towards $10/barrel.
USDX poised to make its move to 108 then 120. Oil down to $20. Gold down to sub $800. Silver to sub $10.
Possibly. I'll start buying gold at $800.
Others had the same strategy at $1500, $1300, $1100,.... good luck.
I think you'll be lucky if you get below $1k now...
You sir/madaam are an optimist. I'll take it!!!
Global oil gluts make prices go higher, right? LMFAO!!!
The real issue is cattle prices. WTF are prices still high?? Tired of over paying for my steak!!!
Are you suggesting the global "glut" will last?
America is still importing north of 8 million barrels per day.
Do you think it matters if that imported oil is priced in Federal Reserve Notes or something else?
Enlighten us!
By the way, a lot of energy is required to raise cattle and bring that beef to the market. I wonder why that has NOT been reflected in beef prices...
Are you suggesting that there is TRUE PRICE DISCIVERY?
LOL indeed!!!!!
Funny thing about the oil "glut". Oil has gone from having about 10 days of world consumption in storage to 15 days. That is what is considered a "glut". Its all a paper driven bunch of BS and has absolutely NOTHING to do with fundamentals.
Yes, don't forget that energy and agriculture (food) are the most subsidized "markets" on the planet. Take away all the bullshit subsidies, tax breaks, and SNAP and let's see what the real cost/price of food and energy is!
I don't think the sheep will like it.
You're getting ass fucked by middlemen. Cost to feed cattle is down 60% based on commodity crash. Still wonder why a fucking box of CornFlakes is $ 6.00 when the corn cost is about $ 0.03 per box. More money going to the toy in the fucking box and some fucktard athlete on the cover. People have no concept of how this all works.
Cost to feed cattle might be down but that's just one component and not the entirety of what a producer has to do to bring beef to market.
As for cereal, yes, the price has been raised several times over the years and personally I don't buy it anymore because there are better choices.
But further, is it really the prices or the value of what you use to buy it with? I'd pick the latter tbh, and history seems to suggest that's the correct answer.
If you eat a lot of beef. I mean a lot.
Go to the rancher, pay cash for a calf, butcher it and load up your freezer.
Cut out the middlemen.
"The real issue is cattle prices. WTF are prices still high?? Tired of over paying for my steak!!!"
Maybe you're not overpaying for your steak. Could it be that price discovery has finally set in? Input costs have gone up. Even though fuel prices have dropped, the (until recent times) drought has pushed hay and grain feeds prices upwards. As a provider of feeder cattle, I am glad to see them bringing higher prices at the sale barn. A lot of the smaller producers like me have gotten out the cattle business and have changed over to leasing their land to hunters and raising hay. They used to keep the sale barns full. Now, there are the same number of buyers (for the feedyards) vying for a much smaller offering of cattle. With the rains, expect it to get worse! More of those small breeders like me who got out of the business will consider restarting, and the larger producers who sold cows to weather the drought will be rebuilding the herds. That will take quite a few heifers out of the feeder pipeline. Over the past five years we've only retained one replacement heifer.
who wants higher oil prices? and do they have weapons to interrupt the flow of oil from the mid east?..
those same powers are hurt by low prices.
talks on going about how to unbox the bear trapped in the corner..while keeping ME stable.
my bet on higher oil prices, is based only on above ..violence and greed always win out over better judgement.
This could be the end of the oil age,not because we ran out of oil,but because it became so cheap,that nobody could make any profit producing it..
I knew that early ramp was BS. My XLE puts are looking good. Let's go down to $25!
Funny how the S&P didn't follow oil down from $140 to $40, but now all of a sudden, it follows it?
Well ZH as been reporting that the world is running out of storage for oil i do have a tin question to this crises.
"Wat did the world agree to in Paris?".
G7 leaders agree to phase out fossil fuel use by end of century | World news | The Guardian
If it hurts so much that oil is in a free fall, why don't TPTB start riggin the oil futures, like the precious metals market but in oil's case upward?
I've been in infrastructure and integrity analysis for some time. What many people might not know is that the chemical business will make a killing with input costs now this low.
They won't pass on that savings though. Also, unfortunately we can expect many more pipeline, water, bridges and power plant issues as there has been no definitive infrastructure redevelopment plan for some time.
PHMSA (think gov regulator of pipelines) made a drop in the bucket move 5 years ago that forced major operators to improve strategic pipelines, that was an exception to the rule.
Best case with oil/nat gas falling expect many assets to be sold, integrity analysis "lost" when it comes to major issues like carbon precipitation, corrosion fields etc . . .
With the recent bout of severe weather in mid west, upper south (lots of water=force) expect major bridge failures, sewer line and pipeline ruptures down the line.
Oh and expect the govt to have you pay for it.