Oil Pumps'n'Dumps After Russia Mentions Production Cut

Tyler Durden's picture

It appears the weight of positioning is too much to maintain any OPEC/NOPEC jawboning. After yesterday's failure by the Saudis, Russia's comments that it "doesn't rule out extending the oil pact with OPEC" prompted an immediate algo panic buy... but seconds later that was sold into as we suspect over-extended longs are now using rips to reduce risk.

#Fail

 

It appears $49 is the new jawbone line in the sand...

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adr's picture

Why wouldn't you say to are extending the "cut". Jawboning about production cuts and doing nothing but pumping more oil moved the price from $26 to above $50.

The talk about cuts will keep oil in the $50 range when it should be falling back to somewhere in the $20s. Meanwhile OPEC and Russia get to pump oil like there is no tomorrow and sell it for double the price it should be.

Bullshit prices the market, not fundamentals.

_RRR_'s picture

agreed, but there's still some longs to fry

maybe they do at least 40 to scare the crap out of them

Sky flyer's picture

Silver bitchezz! Enjoy the dollar dump before the hammering starts.

Luckhasit's picture

Just waiting for that DDT.  I wonder what happens with oil derivatives once it's no longer profitable to sit on oil tankers worth of oil. 

We don't see any pics of them anymore...

NotApplicable's picture

Some CB will likely buy 'em all.

Ecclesia Militans's picture

The entire western portion of Libya is unsurveyed but I saw Russian oil company engineers evaluating the likelihood of setting up operations there.  Light sweet crude, easy transport to Melitta for the in situ pipeline to Italy.

Which is why there are multiple factions fighting and the pass is a security nightmare.  After Sydney Blumenthal and his boy at AMCHAM shit the bed with Basset Igtep and the money from the Seagram's heiress (this is all true unfortunatley, as bad as this sounds) Libyan oil will be kept offline until the price goes back up.

cheech_wizard's picture

What I want to know is who is the bagholder? This shit has been going on forever.

Standard Disclaimer: Pump and dump...

Pasadena Phil's picture

As an oil investor, I have no problem with the hedge funds getting gutted over their foolish bet against US shale. OPEC has already lost that game and nothing can stop shale from squeezing out all (eventually) of the imports. The US now is the most influential factor in where global oil prices will be in the future. This will only grow.

So let the bloodbath continue for as long as it takes to drive these "Masters of the Universe" speculators with their one-sided monster bets out of existence. The markets will stabilize once they have been thrown out and the US oil industry, driven the the shale advantages, will emerge as THE monster in the world. This will then stabilize the global economy (if we can avoid WWIII).

Fed-up with being Sick and Tired's picture

I also trade oil (CL), using Ranges. We are in a SHORT in OIL and I took it short, 40 contracts, at 49.13 (averaged in, I am not perfect)...and I am holding shorts now again, after taking off my position this morning at 48.75. NOW, we are in a range from 48.84 to 48.25...the oil algos bounce rounded levels. IF you want to see more, then look at my blog, just post a note here. NO, I am making money trading not educating but would like the company as it is fun and profitable. I am retired and in my 60's.

Sapere aude's picture

Pasadena. if you are an oil investor and you think nothing can stop shale...you are likely to be broke!

If you want to invest in oil, its better if you know something about the subject, and clearly you don't.

You are right on one thing about U.S. being influential, but sadly its not because of the amount of oil we pump, its the amount of paper we dump