$99 Oil For 11/11/11

Tyler Durden's picture

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wang's picture
wang (not verified) Nov 11, 2011 12:00 PM

11 11 11 11

Dr. Richard Head's picture

I assume you are referring to the inflation adjusted Cain 9-9-9 plan?

Dr. Richard Head's picture

The elite would have it no other way.

TruthInSunshine's picture

Give The Bernank some time - I don't know, maybe 15 minutes or so - to get this under control.

 

 

 

Four+ (dollar a gallon gas) is the loneliest number that Obama will ever do. Five can be as bad as four.
It's the loneliest number since the number four.

infotechsailor's picture

...Speculations on an Israeli strike on Iran, or at least on the Iranian media hype, to be sure.

whatsinaname's picture

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 ?

r101958's picture

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%."

Mike2756's picture

I think it's more demand driven, gasoline is dropping while distillate is rising.

LawsofPhysics's picture

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?

smiler03's picture

Is there a mid place where you don't have to worry about winter heating or summer air conditioning?

r101958's picture

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).

 

boiltherich's picture

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.

TheSilverJournal's picture

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.

LawsofPhysics's picture

ZIRP is only excellerating the destruction of real wealth and what could have been the productive allocation of capital.

Pitchman's picture

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

 

AngryGerman's picture

"There are 99 barrels of oil on the wall, 99 barrels of oil!"

Dr. Richard Head's picture

Take one down, collaterlize it now.......100 barrels of paper oil now.

vast-dom's picture

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......

AngryGerman's picture

Let the bombs fly! Up up and away! Let's have some fun this weekend. there's nothing on tv anyway...

yabyum's picture

I thought the Penn State game was on!

High Plains Drifter's picture

the right of passage for penn state football is to bend over and spread them and take one for the gipper........

sabra1's picture

the Genie Bra Infomercial is on!

Absinthe Minded's picture

Yeah, XOM only made what, $10 B last quarter. Poor bastards are going to have to sell their Bentleys and buy Mercedes instead.

sun tzu's picture

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?

rwe2late's picture

one word, .... "oil-igopoly"

jonan's picture

did you blame nobama when the cost of the presidency went from 4.2bb to 5.3bb

Hohum's picture

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.

Taint Boil's picture

Always there are problems with the number One

prains's picture

To be truly cool oil needed to be $111

digitlman's picture

The more oil goes up, the faster our recovery is!

 

#WINNING!

GeneMarchbanks's picture

$100 while IMF warns of recession. Hmmmmm...

CrashisOptimistic's picture

If demand is falling and price is rising, and it's 2008 before printing started, what does this say about supply?

yogibear's picture

With Hopium oil should continue climbing  back up. Gotta paint the year-end tape!!

John Law Lives's picture

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!

Troll Magnet's picture

Happy Hanukkah to you, Bitchez!

TruthInSunshine's picture

99 11 11 11

 

Somewhere the Illuminati knows what this sequence of numbers means.

Schmuck Raker's picture

If you add up the digits you get......24!!

How creepy is THAT?!

[shudder]

vato poco's picture

OMG, that's IT!! The sign the old ones warned of! The prophecies are TRUE! they're happening NOW!!!

Clearly, this is bullish.

caerus's picture

apocalypse party at my place bitchez

CrashisOptimistic's picture

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.