$99 Oil For 11/11/11
Presented with little comment - except a reminder that:
"every $1 per barrel rise in oil decreases U.S. GDP by $100 billion per year and every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year."
Source: Zero Hedge
Chart: Bloomberg
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11 11 11 11
I assume you are referring to the inflation adjusted Cain 9-9-9 plan?
for the 99% of course!
The elite would have it no other way.
Give The Bernank some time - I don't know, maybe 15 minutes or so - to get this under control.
...Speculations on an Israeli strike on Iran, or at least on the Iranian media hype, to be sure.
The price of gasoline has been held in check rather smartly to create a mirage at the pump ?
Heating Oil is jumping big though so the pain will be felt in Jan & Feb when the heating bills arrive while the 99% are maxing their cards out in the spirit of the holidays.
Do I interpret this correctly ?
I am glad somebody else is seeing this too. I posted the following yesterday:
r101958
Thu, 11/10/2011 - 13:26
"The other interesting aspect of all this is that RBOB (gasoline) price has disconnected from Oil price which may indicate that price suppression/manipulation has moved from WTI to RBOB. Two facts; 1-up until last August(2010) WTI and Brent were very closely aligned; 2-Up until very recently, RBOB price movement has been closely aligned with the WTI/Nymex price movement. As an example of the 'new' trend: today WTI up 2.24%, RBOB up 0.06%."
I think it's more demand driven, gasoline is dropping while distillate is rising.
That is definitely part of it. Distillates go into everything, at least I know it is in a lot of the consumables we use. I will say that my mother's heating oil bill was substantially higher and she is on a fixed income (Albeit comfortable). Still not good. Will we see an exodus of retireses to the south?
Is there a mid place where you don't have to worry about winter heating or summer air conditioning?
Perhaps. However, in all the years I've been tracking these prices I have never seen this much of a divergence in price direction between RBOB and oil. Previously, this has indicated manipulation of one sort or another. Maybe now there will actually be 15% ethanol in the gas (as opposed to 10%).....but, to be honest, not sure how the suppression is being accomplished. Also, one fact we need to note. If the price of gas increases then that will be less money that 'consumers' (really dislike that word) use to buy baubles for Christmas........and that would be a big negative for the economy.
I posted the following in June touching on the ethanol subject:
by r101958
on Tue, 06/14/2011 - 11:08
#1367659
put another way....they most likely started blending last year in August when the difference between Brent and WTI really began. So, why did they start blending? That question, most likely, will never be answered with any clarity. Maybe price supression and/or inability to produce the real thing? One may also ask 'why was the legal amount of ethanol added to fuel raised from 10% to 15%'? Perhaps because it reduces oil used for gas by 400k brl/day. It also allows masking of the price of gas by hiding some of those costs in gov't ethanol subsidies (and ethanol ends up being at least as expensive as fuel created with oil--but with part of the price hidden).
Pretty sure it has something to do with diesel, not a lot of the public realizes we export a lot of diesel, and with Libyan supplies cut off to Europe we are making up a lot of the difference. Also, we import a lot of gasoline from Venezuela (at least we used to) remember when some bad Venezuelan fuel ruined a bunch of cars in Florida? And lastly they make huge production runs in spring and summer of RBOB for the summer driving season then in fall have to switch over to the winter blend, what summer blend they have on hand gets sold cheap to get it out of the storage facilities, that is why most years gas is cheapest in the late summer early fall, and thus why they chose the third quarter of the year as the one to use for calculating CPI for government COLA's, fuel is ALWAYS cheaper on October 1 than it was on June 1.
So, if oil is a lot higher but gas is going down it is really just temporary for a few weeks till the winter stock hits the market. To me all this says is that the summer driving season saw motorists use less fuel than the refiners had predicted and blended for. Now they have to get rid of it. Soon we will be buying winter RBOB at a price that reflects the higher oil and then some, I filled up at $4.139 today and as far as I am concerned anything over three is theft. Oh well, drive on and I will just pay what it costs, but that cash comes directly out of what I would have spent in retailers businesses. That is to say, Christmas is cancelled this year.
I know you are being funny, but he can't use that argument anymore because he promised ZIRP into 2013. So his 15 min. quickly turned into a year and a half.
ZIRP is only excellerating the destruction of real wealth and what could have been the productive allocation of capital.
Nice
Is the age of cheap energy done?
Check out the Nicole Foss video at the end of: Central Banks, Bubbles And The Coming Unwind
*
THE ROOT OF OUR SOCIAL, ECONOMIC, MILITARISTIC WOW'S IS AN EVIL, MONETARY SYSTEM. EVERYTHING ELSE IS A SYMPTOM OR AN ACTION THAT SUPPORTS IT. AT THE HEART OF THIS SYSTEM ARE THE CENTRAL BANKS; THE FED, THOSE WHO CONTROL IT AND THEIR DISHONEST, DEBT BASED MONETARY POLICIES. AS SUCH; REGULATIONS, LAWS AND THE CAPTURE OF GOVERNMENT IS FOR THEIR BENEFIT. AN ACCOUNT OF THE PEOPLE HAS NO PLACE IN IT. INDEED, IF THE PEOPLE WERE ITS PRIMARY CONCERN, THE WORLD WOULD BE MORE FREE, LESS VIOLENT AND MORE PROSPEROUS.
THE PRIVATELY HELD FED IS THE TOP REGULATOR OF ITS TBTF OWNERS AND MEMBER BANKS. IT'S CREATION OF MONEY OUT OF THIN AIR; LOANED, AT INTEREST, TO THE SOVEREIGN IS THE MOST INSIDIOUS OF CRIMINAL PONZIS FOR WHICH ALL ITS FAUX REGULATIONS AND FINANCIAL MISALLOCATIONS FOLLOW.
THE FED'S FIAT PETRO-DOLLAR AND IT’S DEBT SLAVERY ECONOMIC MODEL, IS THE MOST POWERFUL CENTRALIZING FORCE KNOWN. IT IS THE GENESIS OF FUNDING FOR THE ELITE MONEY POWER, THEIR CONTRIVED SCHEMES OF CONTROL, AND A SYSTEM OF INCREASING DEBT AND GLOBAL WAR.
TO FREE OURSELVES, RESTORE FREE MARKET CAPITALISM AND REESTABLISH OUR CONSTITUTIONAL REPUBLIC, WE MUST FIRST ELIMINATE THE MOST PERNICIOUS CORRUPTING FORCE OF ALL. END THE FED! - Inflection Point
See:
Money Power And The Central Bank: Life Is But A MEME
END THE FED: THE FIRST STEP IN RESTORING OUR CONSTITUTIONAL REPUBLIC
"There are 99 barrels of oil on the wall, 99 barrels of oil!"
Take one down, collaterlize it now.......100 barrels of paper oil now.
*golf clap*
At min it should be $111/br more at $120. Oh well, let's wait for Iran distraction to leverage the untenable more at staggering of the great purge. Hopium fumes can only run cars and heat homes for so long......
Let the bombs fly! Up up and away! Let's have some fun this weekend. there's nothing on tv anyway...
I thought the Penn State game was on!
Halftime show by NAMBLA!
the right of passage for penn state football is to bend over and spread them and take one for the gipper........
take one for the gripper
the Genie Bra Infomercial is on!
Yeah, XOM only made what, $10 B last quarter. Poor bastards are going to have to sell their Bentleys and buy Mercedes instead.
Why are you blaming Exxon when they sell a commodity? They are 2% of the oil market. Did you blame Southern Copper when copper prices went from $1.20 to $3.50? Did you blame Barrick Gold when gold prices went from $200 to $1,700?
one word, .... "oil-igopoly"
did you blame nobama when the cost of the presidency went from 4.2bb to 5.3bb
Per dollar of revenue, Microsoft, e.g., makes a lot more profit than XOM. Love them or hate them, XOM sells a product we need in abundance.
Always there are problems with the number One
Better Yet - Check out these charts of the moments in question
http://crudeoilgoldtradingroom.blogspot.com/2011/11/crude-traders-wish-happy-11-11-11-to.html
To be truly cool oil needed to be $111
The more oil goes up, the faster our recovery is!
#WINNING!
$100 while IMF warns of recession. Hmmmmm...
If demand is falling and price is rising, and it's 2008 before printing started, what does this say about supply?
With Hopium oil should continue climbing back up. Gotta paint the year-end tape!!
Bullish!
Wow! 9% unemployment (U-3) and 45.8 million Americans on Food Stamps... and we are nearing $100 oil.
Merry X-mas from the Great Chairsatan!
Happy Hanukkah to you, Bitchez!
99 11 11 11
Somewhere the Illuminati knows what this sequence of numbers means.
99% -2- 11:11(hell)
33 * (3, 1/3, 1/3, 1/3)
If you add up the digits you get......24!!
How creepy is THAT?!
[shudder]
OMG, that's IT!! The sign the old ones warned of! The prophecies are TRUE! they're happening NOW!!!
Clearly, this is bullish.
apocalypse party at my place bitchez
Specs at Work!
The oil/GDP relationship is hard to argue with, but WTI is not oil. Not much of it is produced anymore.
The US imports most of its oil (not all liquids). That oil is priced as Brent or one of the other blends. WTI is an anachronism that is widely traded but has no economic impact.
http://www.bloomberg.com/apps/quote?ticker=USCRLLSS:IND#chart
Where does Bakken oil get to market?
This is pre-war speculative action...everyone wants a piece of $120-$150 when bombs rain on Iran.
Sick, but tradeable.
Bakken gets trained to refineries, but be always conscious that despite the hype, there's not much of it. About 300K bpd (North Dakota officially quoted 277K bpd in May 2010) is all. That's far less than the 2.2 mbpd imported from Canada. It's 95% hype and 5% meaningful.
Additionally, and absolutely critical, much of what comes out of the Bakken is NGL, not crude oil. It gets lumped and called "oil", but it is NGL, meaning it can make plastic, but not gasoline. It's a completely different market. A legitimate market, but it's not the bulk of US need, which is transportation.
The overhyped Bakken is not the magical fix.
Oil up. Consumer confidence up. DXY down. Good times.
It's a three month high. It's only here now because of the probability of an Israeli attack on Iran, of the infighting in Syria, and the new MRLS' from Libya that magically appeared in Gaza to continue provoking unrest in the M.E. What better way to divert attention from banksters and the rape of Europe than to start another war in the M.E.?
http://www.infowars.com/egyptian-gas-pipeline-to-israel-attacked/
Forgiven,
I don't think so. I think it's because the DOW and (WTI) oil have been highly correlated for a couple of years. Unless the pattern breaks, as equities rise, so will the oil price, which may explode if war with Iran actually occurs.
Syria barely produces enough oil for themselves
This is following Biflationary theory perfectly.
When the economy shows some minor improvement, the cost of doing business and living goes up substantially. Setting the stage for the next leg down. No reset, just a grinding downhill course punctuated with small bounces in between like a rubber ball bouncing down the stairs
Nice metaphor Caviar.
They are driving in the coffin nail with this oil price action. Either the market continues to rally or oil continues to rally...but a scenario where both continue is hard to fathom. But then again "market" implies there is still a market, and that notion has been thoroughly vacuum tube debunked.
Yes. Global inventories have plunged over the last 3 months, in some places to 9 year lows. Scary part of that is that the economy was slowing during those 3 months and OPEC output was humming along at boosted capacity to compensate for Libya. There's more too.
I wonder if it has to do with tanker rates. Were they holding the ships until rates improved?
That is one leg of the "inventory" game played on oil. There are others as well, especially out of Cushing.
That would be optimistic.
of course, peak oil can't be REAL, can it?
When inventories draw down this hard in the face of serious reductions in consumption, you have a motherfucking problem
WHat will happen when the Israelites attack Mullahs? 250 barrel for oil
How much oil do you think the West imports from Iran?
http://www.nationmaster.com/graph/ene_oil_exp_net-energy-oil-exports-net
Iran is 31st of 32. (I think we know where #32 Bolivia has focused their exporting prowess)
Mongo say them worthless statistics. No Kuwait. No Venezuela. Number from 2005.
Mongo not know. Mongo only pawn, in game of life.
Doesnt matter...video of a tanker or aircraft carrier sunk in the Straits is all it would take.
You got it. A war with Iran would shut down the Persian Gulf, which includes oil from Iraq, Kuwait, and Saudi Arabia.
http://www.eia.gov/pub/oil_gas/petroleum/data_publications/company_level...
Though it may not be exporting to the US, it is still providing net exports of around 2.5mm barrels daily, which puts it on par with Nigeria, UAE, and Kuwait, not Bolivia.
http://www.eia.gov/countries/country-data.cfm?fips=IR#pet
http://en.wikipedia.org/wiki/List_of_countries_by_oil_exports
http://en.wikipedia.org/wiki/List_of_countries_by_oil_imports
We need a great reset in ideology. Those desert religions have hijacked the minds of billions of people and they can no longer be used as a tool to modify human behavior to get them to act properly: they're no longer useful. Religion serves a function in lesser societies--and the human species needs to be dragged up from the gutters, if it takes that much.
We're all socially engineered, whether you want to believe it, or not. Free will doesn't exist.
You mean a new Soviet Union where people are brainwashed by the state
shut up, faggot. I'm sick of this commie fear-mongering.
Who the fuck is marx to me? Your world is shrouded in old man balls. You fucking faggot.
Some mental incompetent can't understand what a RESET does? Why can't people think for their fucking selves? You're an idiot if you think any of the choices you make are "free" in design. Your entire perspective and approach to life is limited by the illusory factors of social position and what fairytale religion you subscribe to--and even the people with whom you must interact with in life.
I may be describing concepts that are too hard for you to grasp, so just go back to your safe little world and don't try to approach me with your idiocy again.
The more I think about it, the more I have to cede that maybe the elites are right. Sheep-ass people are too stupid to do anything with their own lives besides parading with their egos in a system designed to exploit them. Lots of dim bulbs out there in the world, it seems. You tell people that their stupid ass social construct that they're familiar with isn't based on any sort of freedom--and they'll attack you because they DO NOT WANT FREEDOM. WHAT PEOPLE WANT IS FAMILIARITY.
This entire species is shit, man.
Go kill yourself you fucking worthless retarded maggot. You and the rest of the world will be happier
Speaking for the rest of the world now, are we? Don't want some evil communist world (note: I don't give a fuck about communism, but it sure seems to get you riled up) when we have suntzuistan to speak for everyone.
You're falling apart, boy.
And LOL "...worthless retarded maggot." Get the fuck out of the suburbs and see the world you fucking dipshit.
Ok, I have two things to add to this thread ...
First ...
to which the response was ...
I don't see this as off base at all; the soviet union was very propaganda driven as a political model. I used to work with a brilliant engineer who was from Siberia (if I am not mistaken) and he once commented about Michael Moore's movies, "It's really bad propaganda. He should spend some time in Moscow to learn some things." He went on to critique the propaganda style and flaws (not really the message/content - very interesting conversation).
Anyway, how exactly do you expect a society, billions if you are generally talking about Muslims, to suddenly "reset ideologically". It is, in fact, patently absurd.
To this response you went off your meds and started implying sexual orientation and all sorts of crazy shit, instead of engaging in a logical, thoughtful debate.
Just a hint, but if you engage in such tactics, most readers will simply scroll past the spat to more interesting reading. That sort of things works like honey on flies in pretty much every forum ... except ZH.
So, just consider this point and the nature of my comment (the only troll action you got as a result thus far).
On to my second point...
Sun Tzu's avatar is one of the few male avatars on ZH. Most avatars of a sexual nature (which I bitch about periodically because it makes reading ZH at work more risky than I prefer), are overwhelmingly female. Normally, I wouldn't comment, but an Incubus is more or less a "sex demon", or the male version of an sucubus.
So, to watch ya'll cat fight ... er, dog fight? ... just struck me as ... well ... odd. You don't see that very often!
Regards,
Cooter
Banker Drysdale starts sloppin out Jed Clampett's pigsty....while Margaret turns tricks for fuel $ to get the Bentley back home after chores.
Granny heads back to Tennessee in disgust and wacks a whole squad of TSA perverts who try to pat her down at a weigh station...Duke the bloodhound slops up their pathetic remains...County Sherriff refuses to indict, citing reasonable defense.
Bruce Willis convinces Sanjay Gupta to do another Tarantino tribute/rip off with Jethro starring as an Elvis impersonator who stumbles into the WH and kills the Kenyan in a fit of blind rage when he calls him White Boy. A conciliatory Muhammed Ali states that he 'recognises the pain' behind the killer's actions, and a jury acquits on the charge of regicide.
The Republic is saved, and everybody except the *1 percent* is happy when RP is parachuted into the position of FED chairman by a popular referendum. Eddie Murphy fronts a consortium of coal producing companies that work overtime to save hundreds of millions from death by freezing in the "worst winter in a millenium." Al Gore flees to Venice.
Improbable you say? Uh huh...how's that official 9-11 investigation (Building 7) thing working out for you>? Day old possum stew anybody?
QE 11?
RIDE A BIKE
BITCHEZZZZZ!
WTI over $100 soon? Wonder why those sellers of a tangible good everyone needs are asking for more fiat paper for their product?
The price of gold, oil and food. These are Bennie's true enemies.
OPEC prices oil in ozs of gold. Who can blame them?
sschu
congress trading on insider info:
http://www.cnbc.com/id/45249857
While they won't go to jail because insider trading is not illegal for people in congress, those of their constituents not in a coma will surely vote the criminal out ... by voting for the guy who is just a criminal-in-waiting.
Ah PaperBear, it is just precious that there are still some people out there that think voters have any say. If you think a congress person would get voted out for that even assuming we could vote one out I think you are just being nostalgic. Hell, republican districts will probably throw him/her a tickertape parade. Even if they do not like that their congresswhore gained from what would for citizens be illegal insider trading they are not ever going to replace a crooked republican with an honest democrat. Anyway, larceny by those that own us is already "priced in."
There was quiet news out earlier in the week missed by most. Mexico's oil import/export money balance hit breakeven on the way to deficit.
They still export oil, in steadily decreasing amounts as Cantarell dies (that btw is a critically important wiki to read, the most spectacular devastation in the history of oil). The problem is they import gasoline. They don't have refinery capacity. So oil goes to Houston and gasoline returns. It is creating an oil product value deficit that used to be a surplus. It guts government royalty income, which is about 40% of revenues.
But mostly it shines a spotlight on the disaster that is Cantarell. -14%/yr oil extraction collapse amid the most sophisticated recovery methods known to man.
When Geology speaks, there's nothing you can do.
(sarc/on) But wait....they just need to drill, drill, drill and use new technology and alternative energy. (sarc/off)
solar powered drilling machines and pumps.
drill baby drill
bbbut...bbbbut...IONIC LIQUIDS!!!!!!!11111
SOLAR NUKEYALER WIND TECHNOLOGY.
The reality is that the recovery methods caused this. They brought production up to a plateau far faster and kept it there for a length of time and then it plunged just as fast as it was ramped.
This is the expected production curve since the 1970s...trapezoidal, not a bell. All the technology merely enabled *faster depletion* not longer lifespan like the Peak denier IDIOTS said.
11 11 11 11 11
No place I'd rather be
Glad Ill be spending a MONTH in Amsterdam from the $$$ I made shorting gold from 1900