WTI Crude Nears $39 - 2016 Highs - As Shorts Tumble

Tyler Durden's picture

With ETF shorts falling to 2016 lows, WTI crude futures are surging once again (despite yesterday's news that there will be no "production freeze." Near $39, this is the highest since the first day of trading in 2016.


Sending WTI crude to its highest since 2015...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
aztrader's picture

Are the central banks now buying crude to prop up the oil companies so the banks are stuck with bad debt?  This ponzi is getting worse every day in every market and the elites are getting more and more desperate to keep it going.

Ghost of PartysOver's picture

Shale, frackers and sands come back on line in 5, 4, 3,.......

All part of the game. 

lunaticfringe's picture

I don't think so. I'm from the oil patch. You can't magically ramp up the infrastructure and labor at sub 60 prices. Fracking is only marginally profitable at 60. It's a pain in the ass and it requires a sustained price or floor. I'm not going to wade in at 45 or 55. All that Cushing and in bound inventory has to dry up. Until then we will have plenty of supply and retail will still stick it up the consumers ass thi s driving season just like they always do.  

Baby Eating Dingo22's picture

PPT abandoned efforts to suppress gold in favor of ramping oil now that Putin's been scarred.

Saved equities and banks

It's a win win

bidaskspread's picture

Couldn't agree more with ppt intervention or some other central bank buying (maybe the saudis). The shit storm should start to hit after April when crude revaluation hits for bank lines. The industry has been using 48 per bbl since October,  my calculation should put the new number at 36 or a 30 percent haircut on any pledged petroleum inventory not including the assets devaluation... tanks down 20 percent sales price this year a lone. If you want to really see the what will happen in the next 6 months visit Alberta. They lost over 100 k petro jobs and are now seeing Non petroleum job cuts; restaurants,office space,housing, service related jobs. This is a lot bigger than the media is letting on, and not just wti but the entire energy sector and anything that touches it. 

chicmagnet's picture

You hit the nail on the head my friend. Every reaction that .gov, the fed, and the cb's make will only make the final collapse worse, We are already fucked 6 ways to Sunday. Stack On MFERS!

Rip van Wrinkle's picture

Why the question mark? It's so fucking obvious even to a schmuck like me.

lunaticfringe's picture

It's the invisible hand. Right now banks, big oil, and trading desks need the price up and fuck fundamentals. They will manipulate the price up- position limits be damned- until they get this mf'er to 60. You watch. They will do this by May. Trying to trade markets on common sense and fundamentals is for dumb shits. 

FreeNewEnergy's picture

This is ridiculous. I admittedly don't know much about the oil futures market, but this move off the lows reeks of stupidity, greed, and vice.

Price of WTI crude should be around $30, not $40. A crash back to the lows is coming, along with one in the stock market. Figure the FOMC meeting next week as a no-win situation. If they hike rates again, crash. If they don't move, crash, because equities are overbought and the Wall Street lobby will be happy to take their profits off the table.

mandalou's picture

Wait till contract rollover and OPEX next week. Will redefine stupidity.

Hohum's picture

What's "should" got to do with anything?

RealistDuJour's picture

This implies that you implicitly believe EIA without question.  A Zero article yesterday highlighted the point maybe this was all more EIA manipulation than an economics thing.  Just where IS all this missing oil...?

But or course the gubbamint has all our best interests at heart...

You believe that gold should be higher because of "where's all the gold?"  Zeroes should be  "Championing" the "where's all the oil?"

mandalou's picture

Oil is having a parade in international waters.

NotApplicable's picture

Perfect descrption!

Rally 'round the banksters! With a tanker full of shale.

They rally 'round the banksters! With a tanker full of shale.

They rally 'round the banksters! With a tanker full of shale.

They rally 'round the banksters! With a tanker full of shale.


Oil on parade!

NotApplicable's picture

Why, "deep storage," of course.

Mick Shrimpton's picture

Manipula-a-tion, it's making me hate...

(Heinz ketchup commercial)

FreeShitter's picture

50 by easter 60 by memorial day 70 soon after that....the shitshow is like a vampire that wont fucking die.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) FreeShitter Mar 11, 2016 10:10 AM

You ain't lying

lunaticfringe's picture

I think you nailed it FS. Not sure of 70 but 60 on your timeframe is all but guaranteed.

scubapro's picture



even here, sentiment of posters has turned bullish.   if no one is short anymore, who will buy? refiners? hahaha....they will be buying straight from the wellhead by memorial day and the inventory glut will grow.

mandalou's picture

On a side note gold is getting smacked like a bitch.

FreeShitter's picture

knew it would after that huge ramp up yesterday....wonder what the ratio is up to now in the crimex.  Fucking bastards.

mandalou's picture

Time for all of us to hop on board the smack down and use the green goy paper to take what is ours back from there vile hands. It is our gold. So use the system against them. They smack paper prices down, then ride it down with them. use all the profits to buy physical. Finally, enjoy the weekend boating.

mandalou's picture

Needs to also fill gap at 1246.50. They will get it.

Mark Mywords's picture
Mark Mywords (not verified) Mar 11, 2016 10:30 AM

Just another $11 for oil should get me my 2250 on the S&P.

It's a-comin'. Perhaps by OpEx next Friday, at this pace.

Boondocker's picture

Just another example of the casino stacking the deck....

lemontree2's picture

Dow up 200 pts. Contain central Banksters and the establishment. Audit the fed. Hold them for ransome. Donald for the people

venturen's picture

Well....What did you expect....give the global mega banks unlimited cash to manipulate any market. They parcel the money to "ex-"employees at "hedgefunds" and they short or pump in concert. It is so easy a caveman could do it. I mean...what was the $150/barrel oil about. Was just reading that since 2000 Japan has dropped demand for oil by 20%....the USA demand is down about the same....China and India are up....but overall supply is way up and demand is flattening.

lunaticfringe's picture

Exactly. That is exactly how they have manipulated markets. Not hard to do with free money- so easy any counterfeiter could do it.

FrankieGoesToHollywood's picture

When will Harry Reid get on TeeVee stating that speculators are true patriots for inflating the price of oil?

gcjohns1971's picture

You can't print fundamentals.

But you can use a printing press to fake them for a while.

...Until the writing is on the wall...


Because, like all man-made objects, what goes up artificially will absolutely come down...and its descent requires much care to avoid destructive crashes.

gcjohns1971's picture

No additional refining, no reduction in inventory.

No reduction in inventory, no sustainable higher prices.

It is very, very simple.

Mr. Bones's picture

The market can remain irrational for longer than you can stay solvent.

gcjohns1971's picture

The Market has been irrational longer than anyone could remain solvent.

It will soon become rational or go the way of all irrational things.

inosent's picture

the trade right now is to fade prev yr close for shorts. its easy to see. i think oil goes positive for the year, and the weak yrly high breaks. when? sometime this year. with all the consecutive higher lows, no bee line from here into the 40s. those prices will trade, but to give more muscle to gong positive for the year, maybe a fade is needed here, sort of a 'see, 2016 is going down' then 2 months from now a break higher totally negates that and stays up. so maybe it is still too early. its like watching that movie where a guy is trying to escape from a sewer system, and finds a way out, a very narrow and steep vertical tunnel, with lots of stairs, but they dont al work. anyway he finally gets to the top, and finds a steel grate at the opening. its locked. that is the prev yr settlement. but later on in the movie, somehow the guy gets it open and escapes.

Huckleberry Finn from Texas's picture
Huckleberry Finn from Texas (not verified) Mar 11, 2016 11:47 AM

I am surprised that ZH does not realize that all of this climbing of oil in the face of persistence bearishness from everyone, most natably them, is probably indications of a long term bottom.

They canoot find anyone to say anything positive about oil and funniliy do not understand that bottoms are made on extreme pessimisim, like now.