WTI Plunges 15% From Recent Highs, Tests $42 Handle

Tyler Durden's picture

Well that escalated very quickly...

WTI is now down 15% from last week's highs...

 

Seemingly getting hammered early in the day...

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SomethingSomethingDarkSide's picture

The second this starts to take a 2% jump, the S&P will begin tracking it tick for tack.  They are just pressing buttons and making it go up at this point, they just need a daily excuse.

Here2Go's picture

Will somebody please inform Costco & Sheetz?

wisehiney's picture

If/when they come out with a bogus good jobs report tomorrow and gold takes a dive, 

I propose a race to the precious dealer.

Even with the deflation I see, I think it is a good bet that gold does not see the lower side of $1300 again.

Last one there is a rotten dollar holder.

The Real Tony's picture

Wait until the jobs print for the month of October then buy gold a few business days after the jobs print.

heisenberg991's picture

Gas prices are not going down...WTF

SomethingSomethingDarkSide's picture

Supply and Demand.. what are ya gonna do, ride a bike to work?

Maybe a couple ZH's, yeah, but the rest of society?

Happy to line up for the daily rations!

Id fight Gandhi's picture

Too much supply not enough demand? Prices higher just cause. Murica!

 

flaminratzazz's picture

Beat this dead horse down to 30 again.. it is not like there is anybody that can afford to burn hydrocarbons anymore.. just ask Caterpillar.

cheech_wizard's picture

I just did...

http://www.independent.ie/business/irish/caterpillar-closing-irish-facto...

Standard Disclaimer: The layoffs will continue until moral improves.

BigCumulusClouds's picture

It is not a handle, it is the right shoulder of a head and shoulders pattern.  Look for oil at 35 once the right shoulder is completed.

RadioFlyer's picture
RadioFlyer (not verified) Sep 1, 2016 2:47 PM

raise it up to increase the S&P. Let it drop (but doesn't impact the S&P), raise it up again to increase the S&P. Repeat.

The only relationship between WTI and S&P is up.

wmbz's picture

I'll be mo happy when it's $20.00. The Yukon is thirsty!

delivered's picture

As Robert Duval stated in the movie Apocalypse, playing L. Colonel Bill Kilgore "I love the smell of napalm in the morning". Translation today, "I love the smell of deflation in the morning". Just look around, individually these may seem like one off industry related events but taken together, well these forces are beginning to pick-up steam (from recent MSM and ZH articles):

- Energy/Oil prices receding yet again.

- High end real estate in Miami, NY, SF, Houston, Vancouver, etc. are all deflating.

- Farm land prices decreasing.

- Transportation industry and shipping rates/capacity (rail, water, trucks, etc.) all under pressure (exception, current Korean company BK causing problems).

- Auto prices soon to follow based on August results and Ford's comments today.

- Grocery/food prices decreasing creating problems for large retailers.

- Retail industry, burdened with excess capacity, is removing square feet at a fast rate (e.g., Sports Authority, Macy's, etc.).

Other than the twin "H" evils (i.e., housing and healthcare), deflation is beginning to spread throughout the economy, bit by bit, day by day, and industry by industry.

So while the world's CBs try in vein and throw everything they have at trying to ignite growth and inflation, the irony is squarely in the fact that their years of easy and cheap money policies has created a significant mal-investment problem with excess capacity across numerous industries in addition to allowing countless inefficient companies to remain afloat (when they should have been cleared out years ago and allowed to fail).

The BK by the Korean shipping company is the latest in the failure cycle that really has just begun as I expect many more down the road. But the CBs will not go down without an epic fight, one for the ages, one of which we have never really witnessed or maybe never will again.

Think of it like the ultimate game of Texas Holdem: Two players are left including the CBs versus the world's leading money managers (e.g., Soros, Gross, and countless others that have issued warnings). The CBs are all in, their two hole cards are crap and they got nothing on the flop or turn. The money managers are matching thier raises by loading up on more protection. Now everyone is waiting for the river which we know is not going to help the CBs. But they will dump everything they can (and they have a shit load of ammo) into the game, trying to flush out the money managers.

Problem is that if this is a cash game, the CBs have endless sources of cash (i.e., printing) so the real question is can the money managers call their bluff and force the economic reset to occur and win the final pot (however painful it may be).

Decades ago, Soros was famous for breaking the BOE. Now the game has shifted towards a group of money managers trying to break the world's CBs. For me, I'd rather not play in this game but rather just bet on the one player that always wins (and takes a cut) - The House. Translation, gold and silver as when the river card is finally played, the event is going to be sudden, extremely violent, and spectacular!

lasvegaspersona's picture

Deflation will just not be allowed to bring down the world's monetary system. The CBs will respond. They will initially buy whatever is offered, then just print without excuse. This is always the plan but the timing has been hellish to call. By now they have to have a plan for international settlement. Some of us think it will be gold as the reserve with better behaved fiat currencies. If it comes to gold as the medium of exchange then the entire world economy will shut down and billions will die as commerce grinds to a halt and no one can be productive.

I just can't believe they are dumb enough to let this play out. One of those quants has to be actually smart.

flaminratzazz's picture

Helicopter money is on its way in Norway and dont think for a minute the CBs wont do a world wide heli drop as a last ditch desperation raise.

The Real Tony's picture

It's not helicopter money since Norway has such a huge surplus of funds from all the years oil was high in price. They're just dipping into the fund after all this time.

adr's picture

Bear to bull to bear in one month's time.

Are we trying to set a record for bullshit?

Publicus's picture

Oil is a renewable resource. Abiotic oil production will bring oil below $5 a barrel.

Stormtrooper's picture

Right!  Oil is constantly being replenished thru an invisible pipeline from an alternate universe.  It's just a waste product there so they dump it into the Earth.

lasvegaspersona's picture

it'll get 'fixed' it always does...'til it doesn't I would guess....

...post apocalyptic labor Day anyone? Pidgeon and wild ramps for dinner...unless someone finds some roadkill....possum, muskrat...regular rat?

And now it seems we will enter Mad Max with no kimchee...oh the horror....

coast's picture

hey guys.. hope you dont mind, off topic, but I came across this video today I want to share..Just a simple guy who speaks as tho I feel, I have always kinda of liked him,  he is a nobody, but he says things that I feel...maybe you feel also.   Its twelve minutes sorry, and skip to the 55 second mark to pass the commercial..I dont do this often, nbut this nobody speaks from my heart also, maybe it will speak to your also...Altho, I am still a David Icke fan and think I dont want to be involved in any of this, at least this guy has major common sense...hope yu take the time...

http://investmentwatchblog.com/video-if-hillary-wins-expect-total-armage...

south40_dreams's picture

......round and round she goes, where she.........