It's Not The Fundamentals; It's Oil, Stupid!

Tyler Durden's picture

So did the G-20 decide that coordinated buying of crude oil was "unequivocally good" for the world's economy stock markets?


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PumpherDumper's picture

This will not end well.

Osmium's picture

Seems to me it won't end.  

herkomilchen's picture

Yes.  Via the printing press they have unfettered access to all of our wealth to fund their purchases indefinitely.

SWRichmond's picture

Not indefinitely.  Longer than any of us can imagine, but not indefinitely.

marts321's picture

Until faith runs out and shit gets real.

herkomilchen's picture

True, eventual hyperinflation and resulting monetary, market, and governmental collapse puts an ending point to it.

KnuckleDragger-X's picture

That kind of depends on whether your the the one being bent over or not.....

Mick Shrimpton's picture

Yep, let's give our money to the Saudis.

SWRichmond's picture


"Higher oil prices will hurt those damned Russians!"   Er....

"Higher oil prices will make consumers think the economy is improving and make them want to borrow and spend!"  Er...

"Higher oil prices will make the next financial reporting period less suicidal, as that will make our balance sheets look better!"  Ka-Ching!


allamerican's picture

bobo just said WS reform has worked.  yo re joking me right turd..

mandalou's picture

can't get the new iphone 33 because 1 can of spam and a loaf of bread costs $20 along with $10 dollars in fuel. Yep this should work out perfectly for everyone.

pebblewriter's picture

"So did the G-20 decide that coordinated buying of crude oil was "unequivocally good" for the world's economy stock markets?"

Don't know who exactly is doing the buying.  But, if you watch short-term ES and CL charts side-by-side, it's incredibly obvious that CL is being used as a tool to lever stocks higher. 

t0mmyBerg's picture

Probably Kuroda at the very least.  He is the (fallboy|patsy| nunce) for the PTB it seems.  "Tell him at Davos to do negative rates"  "Tell him to buy crude oil"  Yes boss.

walküre's picture

Yes and he said today he's done buying (propping up markets) also known as not reaching deeper into the tool box.

mandalou's picture

Correlation has been going on before Santa Claus rally. it's just coming to light now. Think of it like military Tech. it has been around far longer than when civilians are able to buy it at their nearest China Mart.

BellevueTrader's picture

Break through $38 and its to the moon alice! 

JamesH's picture

just like qe central banks buying oil is artificial. they can buy the oil but if usage does not exceed supply where are they going to store the oil?

mandalou's picture

In futures you do not have to take delivery. I am sure the FED and co will not.

debtor of last resort's picture

With higher prices, they'll keep pumping, so storage can run out of capacity.

mandalou's picture

Only solution that will work is war and likely a world war. Maybe this is what they are planning.

Boris Badenov's picture

If the list of frackers in the XOP index keep pumping, what are they going to do when the pipelines refuse to take any more? It's a serious question.

mandalou's picture

If the markets continue on the path of the last 3 weeks, I would say the price would continue to rise. It doesn't matter where oil is actually placed as long as oil carries SP and Dow to all time highs.

Boris Badenov's picture

I've been sayin' this for over a month now, must be getting near finished.

NDXTrader's picture

I smell the whiff of inflation. The central bankers are caught in a box they won't be able to get out of...they are playing whack-a-mole now

francois's picture

I get the simple story that the price of oil is being bid up above market clearing rates on the futures market, and that some sucker will then end up stuck with having to take delivery with nowhere to store it.  

Since the players in the oil market have forgotten more about being devious than anyone alive, the simple story does not ring true. More likely there is less oil around than what we have been led to believe, and the current spike is more to do with Saudi Arabia trying to cover their shorts of the last 12 months (that collapsed the price) as they do not have the oil to deliver on them.

Remeber old Matt Simmons?

Just a wild guess.


Theonewhoknows's picture
Theonewhoknows (not verified) Mar 7, 2016 1:59 PM

Too many players want to see oil price higher - also with shale being eliminated and maybe war breaking up with more than just Syrians dying the price has to eventually go up and Iran with their reserves cannot balance the market to 'new lows' we see now.

Quinvarius's picture

If they are buying oil, it is simply to make a profit because they know OPEC is back in business.