Oil Plunges To $28 Cycle Lows As Iran Supply Looms, Stocks Slide
February WTI Crude futures have plunged to new cycle lows at $28.60 (down 2.7%) as Iran supply looms over an already over-glutted global crude market. Brent is down even more (-3.7%). Dow futures are down 60 points at the open.
- *WTI OIL FALLS AS MUCH AS 2.7%, BRENT CRUDE DROPS 3.7%
Feb futures (which have just rolled) are under $29...
And the new on the run March contract is trading $29.60, down 2.6%...
It seems Nomura may be right:
“Iran’s additional crude shipments have the potential to further depress prices, perhaps to as low as $25 a barrel,” Gordon Kwan, Hong Kong-based analyst at Nomura Holdings Inc., says by e-mail Sunday.
And crude weakness (and fears over US banks) are weighing on US equities... Dow futures down 65 points
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are they going to refund the gas-guzzler tax ?
:^O
Hell, Brent has a 27 handle. There are some serioiusly camel ass-fucked Arab monarchs right now trying to figure out how to tell Allah to make their people live with one less Mercedes to keep them from rioting.
ALOHA FUBAR !!!
gold treatment
Iranian oil was already supplying the market, it was just coming out of israel. That's why they made a big stink about Iran blah blah whatever jooboy.
Excessive debt will only allow for a bottom in this oil cycle as a result of bankruptcy in the shale patch, and civil unrest/war in the opec nations.
I'm curious... What is the (minimum) production cost per barrel? How much in the U.S? How much in the Middle East?
My $25 bbl prediction is looking high.....time to nuke a Saudi Oil field.....
$18 in SA, probably around $65 in the US
Anyone have any insight on when it may be time to get back into the larger oil companies? It seems to me they make a profit no matter the price. I have about 30K mad money in a 501g or some such shit.....got it through the divorce, a State Deferred Comp Program. FIDELITY, should I bail and take the tax hit?
There is one guy on here, Oregon Medical Marijuana or some such, he's looking for investors with mad money. Boohya let's smoke some trees bitchez. Get baked and maybe sprinkle a little "H" on that somebitch, get layed out on the horizontal ha ha yeah.
"I have about 30K mad money in a 501g or some such shit.....got it through the divorce."
Wait... You GOT money from a divorce? How the hell did you do that?!?!?
Wake me when it hits $12.
Prepare for a long slumber then, like DEATH!
Back when it was $40 I set my buy-in price at $18 a barrel. Could get down to $15 but figure it's worth risking a few bucks to avoid missing the boat. Getting into USL at $8.25 to hold for several years.
$25, the Oracle Of Central Delaware has spoken
$25 is probably the low and it will stay there for nanoseconds.
The simple risk reward is: $14 lower from today's price ($15 per bbl) and the upside is $60.
The bear case is getting long in the tooth at these prices.
The bull case is the massive short positions (everyone is in the trade), US rig count declines, pending US defaults, strife in the M.E., and OPEC members reaching "max pain" at these levels.
We shall see...
Postion disclosure: Short since 2014. I am questioning, daily, how much lower it can go.
Rest assured the USA is {crtl} C $$ for the Saudis to ride this out with. The target is Russia and the US shale industry; the latter of which will be scooped up for pennies on the dollar by the big oils. Again the mouthbreathers are merely collateral.
It depends on whether you have a long or short term focus. If I recall correctly, the Sauds have the lowest cost per barrel in the world at somewhere between $2 and $10. They can bankrupt and wash out a whole lot of producers before demand recovers. They can probably wipe out Russia, as well.
So, yes, today they might have to do without an extra Mercedes but in the future they may get his and hers Lambo's.
Piss Russia off enough and tankers start to have accidents. Vlad signaled that he will cut and is encouraging the Saudis to do the same.
Im not really sure how much longer Russia can/will put up with this
Interesting question :)
One has to ask if 12 cylinder engines with dual quads will be endorsed soon!
Yes it is time to break out the 6 Packs on Mopars and all engines for that matter.
Why the fuck has gas gone up here in Portland, Or. It just went to $2.21 up around 12 cents?
Someone is fucking you in the ass then. Wholesale gasoline and gasoline futures crashed through the floor last week - down 15%. Would report this shit to your congress(wo)man in case (s)he gives a shit.
Why the fuck has gas gone up here in Portland, Or. It just went to $2.21 up around 12 cents?
Democrats in your state legislature.
Sorry Portlandia, for some reason you have a long range idiot magnet powered by granola and Apple OS, like a big hipster bat signal. I'm personally aware of three 'genius' socially awkward bipedals who have joined your ranks from way down south.. You have become a big adult day care, and we owe you one. And no, we won't mind, you can keep those big gov boot lickers. The three would've gladly voted for the price hike, budget unseen, simply out of their own self-hatred and guilt.
Its the demand shift from all the black suburbans headed to the Malheur National Wildlife Refuge?
I was told by the oil bulls that the additional Iranian oil was already priced in to the market? LOL
HELLCAT YEAH!!!!
707 HP - sorry about the colors and the body styles.
Looks like I'll have to wait to sell that barrel of crude out on the back porch.
Guess momma will hafta wait for that operation.
My retirement is now secure. Thanks for the bubble assholes, it'll be the easiest money I ever made.
Well who could have thunk?
Blind squirrels, acorns and such.
My retirement is now secure. Thanks for the bubble assholes, it'll be the easiest money I ever made.
perhaps one of the most foolhardy things I have read here.
Well then "Nutsack"...I see you've been here for a week, so you go long and I'll remain short and we'll meet back here on Friday and compare how we both did.
LOLOLOLOL.
You are arguing with a "nutsack"!!!!! I can't stop laughing at the irony.
Go short young man - go short. Yes I'm afraid you WILL make a fortune. LOLOLOL. And thanks.
I've got 4500 gal storage capacity for diesel that is empty and waiting. Drop you Mother Fucker Drop! Fuck you assholes that raped us for $ 5.00/gallon....yeah...you Goldman you fucking asswipes. Burn in hell...plenty of fuel to get the fire started.
$5 a gallon would be nice, I'd stock up at those prices over here across the water.
Where across the water?
I pay under $5 per gallon in Europe (Luxembourg).
Here in the US, once gas hits $5 a gallon, we'll be adding to the strategic petroleum reserve :)
Goldmanites are likely short and have been for months
Easy to understand really. Drop in oil price has taken $3T p.a. out of the world economy, or money that would have been used to invest in capital, repay debt, prospecting, cars, trains, planes and Mcburgers. This is the same as taking the UK out of the world economy.
Also, money = debt, so less debt being issued to oil comapnies also adds to the contraction in available money. Add to that losses in other raw materials and mining sectors, and I'm surprised the markets are acting so calmly!
Drop in oil price has taken $3T
Only three quadrillion to go.
The UK doing a good job taking itself out of the world economy!!
Dear Sir,
the UK may be out of the world economy but:
the sovereign City/State of London IS the world economy.
Every month, we are now sending a shitload less money to people whose top priority is to kill us. I take it.
@Proaurum, So things were cool when gasoline at $5 a gallon took at least $6 trillion out of the consumer economy huh? Money that could have been used to buy...
Just remember there are two sides to every trade., which is something that the Fed and other economic policy makers tend to overlook.
Didn't Russia suggest their production would be down 6% this year? Anyway I guess the end is still nigh.
Gold up a whole Dollar
Just in.... $2.00 per gallon tax coming
Thanks for playing
Well you see the EU douchebags already trying to push for a fuel tax to, ahem, pay for the migrants.... I'd sooner fuking walk everywhere....