WTI Crude Tumbles - Erases Entire Inventory-Draw Spike

Tyler Durden's picture

The algos driving yesterday's spike obviously did not read the weather forecast as the one off draw is 'storm shut in'-related and not a sign of demand and massive glut reduction. Add to that a number of nations demanding exemptions from any freeze and the gains are gone...


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Jethro's picture

I still have some oil & gas clients. We started seeing interest from a bunch of smaller outfits when the price flirted with $50/bbl, but they crawled back into the woodwork for now.

Infocat's picture

A Thermodynamic collapse of the Oil Price is coming. It will not recover from it ever again. http://www.truthjustice.net/economy/unlocking-golds-true-value-the-econo...

CHX's picture

The real economy is collapsing, not "oil" per se ! But whatever oil is there, it will be burnt and when once gone and energy will be unavailable at any price... And that will seal the fate of the modern man.

Jethro's picture

I just read through that link you posted. It was interesting, but I guess that I don't understand what a "thermodynamic collapse" is. Am I to interpret that as no burning fuel because of lack of demand due to a shit economy?

King Tut's picture
King Tut (not verified) Sep 9, 2016 12:42 PM

Might be a deer-in-the-headlights kind of day

abyssinian's picture

But but but the clowns at CNBC said time to buy oil cause its got momentum to the upside! :(

CHX's picture

As a stacker with a long-term horizon (waiting for the inevitable fail of fiat currencies) I have started to follow WTI more closely as of late. If one thought silver was crazy, then BLACK GOLD is (AG)^2. The shrimp paper WTI traders are as fickle and short-term as I have ever seen and their gambling is all at the mercy of big money and any "news" feed. 2-5% daily price swings seem now the norm... The world's most important energy source trading almost like a penny stock... What a farce.

Having said all that, oil is in a bind but sorta opposite to gold. There is obviously an excess of oil (vs. a shortage of fizzical aurum, which needs to be paper-suppressed as the canary in the fiat/coal mine), but most producers are still operating at a loss at current prices (new discoveries are so low now that they will not replace current consumption by a far shot). So peak oil looms, the producers need higher prices, the banks that gave BIG loans to the drillers and shale oil producers need higher prices (OR... face the abyss), but the real economy, main street that has been gutted cannot afford higher prices. With that said, I have no clue where oil is gonna go... My best guess is that we'll be in some trading range as of late between roughly 30 and say 60 bucks...

Edward Morbius's picture

Janet Felon needs to get busy buying oil futures through her proxies... otherwise she will be spanked by President Barry again.

King Tut's picture
King Tut (not verified) Edward Morbius Sep 9, 2016 1:36 PM

They started do that when oil hit $27 in March

Youri Carma's picture

Besides supply and demand people often forget to count 'cheap money' in which still keeps some U.S. shale oil alive, for the moment.

Heavy's picture

I'm gonna need to see more than that to start thinking the Gart-man is safe

roadhazard's picture

lol, I called it yesterday.