WTI Surges Towards $50 - Breaks Above Key Technical Level

Tyler Durden's picture

Ahead of today's rig count data, WTI (and Brent) Crude is extending its short-squeeze gains after the bullish inventory data trend was confirmed (shrugging off the surge in production). Signals from an increaisng number of firms that they are cutting capex (and this drilling) has helped send WTI and Brent back above their 200-day moving-averages.

Halliburton, promising to be disciplined in adding more fracking gear to the oilfields, says U.S. explorers are "tapping the brakes" on drilling as the price of oil struggles to breach $50 a barrel.

 

Brent's front-month has pushed into backwardation and the medium-term WTI curve the same...suggesting producers are actively hedging next year's supply at these new high prices...

 

The recent strength has pushed WTI back above its 200-day moving-average...

Support or Resistance? We suspect the 1pmET rig count data will decide the rest of the day.

Comment viewing options

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

S&P500 well over 3x rigged and now crude well over 2x rigged.... why not?

38BWD22's picture

 

 

Perhaps so VD, but it's still an interesting development.  Oil has worth, even in over-production.

OpTwoMistic's picture

Still paying 49  for  $30 oil.  Will not end well.

Plunge Protection's picture

What side is the Gartman on these days? Not that I even need to ask. 

Raffie's picture

They are so hard up to get oil over $50 again.

 

espirit's picture

Yep, there also goes WMT and AMZN profits.

Hammer of Light's picture

Let's all disappoint them... stay home!

GlassHouse101's picture

The toga people 'like' this

LawsofPhysics's picture

LOL!  Again, discussing the "price" of anything in the absence of a mechanism for true price discovery is a fool's errand.

RealistDuJour's picture

Surprise! The price discovery guy posts AGAIN!

Please enlighten us how "true" price discovery would work here?  A buyer buys a commodity with their computer on a market attached to a mysterious global interweb from a seller who posted it on their compulator 5000, also attached to this magical global interwebs?

 

 

LawsofPhysics's picture

Is your buyer taking delivery and using the commodity to actually do or make something real? 

RealistDuJour's picture

If they did take delivery, a transaction took place that set the most current price for that good/service.  If they didn't take delivery and instead traded the contract, a transaction took place that set the most current price for that good/service.

Capitalism at it's finest.  And the best part is that it can't be dismissed as a lack of a market, as it's a GLOBALLY accessible market.  It's not perfect, politically motivated parties will manipulate paper up and down, but overwhelming market forces will ultimately prevail.

If you want it to work "perfectly" and make it mandatory to take delivery, you bring in government regulation and oversight and thusly advocate for a government-run "capitalism", which I think falls under another term Komrade.

Juggernaut x2's picture

A barrel of oil is "traded" 50 times before the user takes delivery- it's all about the fucking skim by The Tribe.

Thomas W. Swift's picture

Tom Swift’s Radiant Energy Lessons

Lesson #1: Definitions

ENTROPY: a thermodynamic quantity indicating disorder of a system.
FOSSIL FUEL: an outdated energy source, widely used from the 19th century until the early 21st century, when RADIANT ENERGY became widely known.
RADIANT ENERGY: a different form of electricity, discovered by Nikola Tesla in the 1890’s. See PHASE CONJUGATION.
OVERUNITY: a COP exceeding unity (1). In accordance with conservation of energy (see FIRST LAW OF THERMODYNAMICS), only possible if an outside energy source supplies some of the output energy. Examples of overunity include conventional renewables such as solar panels and wind turbines.
COEFFICIENT OF PERFORMANCE (COP): an engineering measure of an energy device, the ratio of its output energy to its input energy.
FIRST LAW OF THERMODYNAMICS: the law of conservation of energy (extended to the law of conservation of mass-energy by Einstein). Energy cannot be created or destroyed, it can only change forms.
SECOND LAW OF THERMODYNAMICS: whenever energy changes forms, some of it is always lost to unrecoverable forms because disorder (entropy) must increase for the universe as a whole. Only applies to closed systems, can be violated in open systems.
TIME REVERSAL: in physics, most of the fundamental physical laws do not have a preferred direction of time. Events can unfold equivalently whether time moves forward or backwards to our normal macroscopic sense. See “CPT symmetry” for a stronger symmetry principle.
PHASE CONJUGATION: in physics, particles can be reflected in a normal sense or in a “phase conjugate” sense, where the outgoing particles have their wave functions conjugated with respect to the incoming particles. In many respects this is equivalent to a time reversal and the outgoing particles act in some ways as if they are moving backwards in time. When put through a transformer, phase conjugate electricity produces OVERUNITY.

LawsofPhysics's picture

yes, yes, and someday your utopia will become a reality Tom.  FYI, reduced hydrocarbons (i.e. oils) are used for much more than fuel.

Thomas W. Swift's picture

True, this is a valid point and one that I've had a hard time finding good data on. I finally saw a chart on one of these ZH articles the other day that looked like fuel applications (transportation, stationary power, heating) account for around 2/3 of oil production. I'm pretty sure this is just for liquids and not gas so it's not the whole picture either.

LawsofPhysics's picture

Regardless, the point is that if we want technology to advance, then true price discovery is paramount.  This insures that capital and resources are not mis-allocated.

As far as I can tell the useless paper-pushers are and continue to be overcompensated.

Hammer of Light's picture

Ever wonder why the USG, NASA no longer have a shuttle and rocket program?

Simple answer... they no longer need rockets and shuttles to get to space!

We've already got technology disruptors in position. It would be great if they unleashed them as all of these things Thomas W Switf's post are entirely accurate. Tesla had all of this figured out by 1910. Free energy and over-unity engines were available by 1910. All suppressed by dear ole Pedophile pocket fleecing Uncle Sam!

All nations of the planet could be without Nuclear and fossile fuels in 10 years if we really wanted to. We developed an over-unity electromagnetic engine in the 90's which was capable of powering a string of 100 watt incandescent light bulbs on it's own indefinitely. WE flipped it on, and it simply powered until we shut down. It's truly not that complicated if you know how to work with N52.

We were all shut down, nearly thrown out of college and had each of us had gotten death threats to simply drop it and forget it. That engine worked so well and cost us less than 2k to build. It was stolen and we never saw it again. No matter, many of us know this as well as know for a material fact the the USG and private agency's have been working on this tech for a long time. More importantly, they have it working and operational now.

Anyone who's that thick to not understand this is the Rube!

Too-Big-to-Bail's picture

Did something major happen in the manufactured Saudi soap opera recently?

espirit's picture

Yes, the US trimmed back the ISIS budget.

Hammer of Light's picture

Now it's time to play the Norks blame game!

If we dump any one thing in this reset, it must be the CIA. They're budget has got to go and this hydra of insanity must die.

Hammer of Light's picture

I suspect this is a major tell, the powers that be are getting ready to kill the market and then create the event while the system begins its implosion. They'll drive oil to the frakin moon to hollow out the rest of consumers fleecing all the rest of what little fiat bullshit greenbacks are left.

Today would be a very good day to buy a thousand ounces of gold and 10,000 more of silver. I think it's time to go shopping hard. They're getting ready to reset this bitch I suspect. There is ZERO reason why oil should be above 30 with the massive glut of oil out there as well as all the production, this is an obvious manipulation, this is a major tell. Remember this move people and how they lead it up to 50. These rigging jiggers on the surface with all the other data looks like they're going for the throat. They're coming for us all I think and lighting off hell. All the data corresponds with this move. Shit man, I think it's on. Motherpussbucket!

NoWayJose's picture

You can only push a FANG so far - the big money loaded up on cheap oil stocks and oil futures and is now simultaneously pushing oil higher, shorting the dollar, and attacking Venezuela and other IPSC countries (like Qatar) to create temporary production outtages.