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Crude Passes $100
Remember that October "deflation" that was driven by energy prices dropping (as reported 5 mintues ago)? You can forget it. As of seconds ago, WTI just passed $100 for the first time since July 26. This is another $200 billion in GDP that was just taken out. The market forecast now is global meltdowny with chance of QE3: 85/95%. And in fundamental news, Enbridge and Enterprise announced they would reverse the direction of crude oil flow from Cushing to the US Gulf. Hardly bearish for WTI prices and will likely lead to an even faster compression between Brent and WTI.
From the Enbridge press release:
Enbridge Inc. ("Enbridge") (ENB)(ENB) and Enterprise Products Partners L.P. ("Enterprise") (EPD) today announced that they have agreed to reverse the direction of crude oil flows on the Seaway pipeline to enable it to transport oil from Cushing, Oklahoma to the U.S. Gulf Coast. Pending regulatory approval, the line could operate in reversed service with an initial capacity of 150,000 barrels per day by second quarter 2012.
"The Seaway Pipeline reversal provides an early opportunity to offer Gulf Coast access to midcontinent producers and other crude oil shippers," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "A Seaway reversal will provide capacity to move secure, reliable supply to Texas Gulf Coast refineries, offsetting supplies of imported crude."
Michael A. Creel, President and Chief Executive Officer of Enterprise's general partner, said, "We congratulate Enbridge on its agreement to purchase a 50 per cent interest in Seaway. We believe that reversing the direction of crude oil movement on Seaway and the construction of additional infrastructure will accelerate access to Gulf Coast markets, reduce transportation costs, improve both producer and refiner economics and hasten the development of North America's crude oil reserves."
Following pump station additions and modifications, anticipated to be completed by early 2013, the capacity of the reversed Seaway Pipeline will be up to 400,000 barrels per day in mixed service. Enbridge and Enterprise expect that the reversed Seaway pipeline will be fully contracted. The partners anticipate conducting an open season to validate shipper support for an expansion of Seaway, through looping or twinning.
After reversing the direction that crude oil flows on the 500-mile (805-kilometer), 30-inch diameter, long-haul pipeline, Seaway will deliver crude from Cushing into the Houston-area market by utilizing existing affiliate and third-party pipelines as well as its Texas City local pipeline system. Enbridge and Enterprise plan to build a 45-mile (72-kilometer) pipeline that will link Seaway directly to Enterprise's ECHO crude oil storage terminal located southeast of Houston. This will provide shippers with enhanced connectivity and more efficient transportation to the Houston refining market. Additional investment required by the joint venture partners to reverse the line and construct supporting lateral and related facilities is expected to be approximately $300 million.
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HOPE AND CHANGE BABY
NOW THE ECONOMY WILL BLAST OFF, RECOVERY IMMINENT
/ end sarc
"Come on guys its so easy, its all ball bearings now adays"
Irwin Fletcher
This signifies a potential Iran-Israel conflict. Thankfully, America is ready to take the necessary steps to intervene and protect Israel from any imminent threat. Iran better watch out because America is ready for combat!
MDB, so transparent in your perfidious intents and love to entertain.
Does that explain the Crude/Brent disconnect we have just seen in the last 20 mins with Crude zooming up and Brent zooming down or can anyone explain it if they know?
Big picture, crude is up on M1, next watch copper and gold and the CCI commodity index:
http://research.stlouisfed.org/fred2/graph/?id=M1,
http://www.mrci.com/client/crb.php
From Ghostbusters III: Ocean of Slime
Dr. Peter Venkman: How can we drive oil over $200 per barrel?
Dr. Egon Spengler: I have a radical idea. The door swings both ways, we could reverse the crude flow through the pipeline.
Dr. Peter Venkman: How?
Dr. Egon Spengler: [hesitates] We'll cross the streams.
Dr. Peter Venkman: 'Scuse me Egon? You said crossing the streams was bad!
Dr. Egon Spengler: Not necessarily. There's definitely a *very slim* chance we'll survive.
[pause while they consider this]
Dr. Peter Venkman: [slaps Ray] I love this plan! I'm excited it could work! LET'S DO IT!
"Flatten Israel..apologize." sounds cost effective at least...
"America is ready for combat!"
Perhaps it is, but as is becoming normal, for all the wrong reasons.
disclaimer: I have plenty of Jewish friends, but the state of Isreal is not worthy of anybodys protection.
Based upon what the leading GOP contenders (excluding Ron Paul) have to say these days, it sounds like they would kick up some dust with Iran. There is no doubt that John "Warmonger" McCain wanted to take action. There is also no doubt that Bibi Netanyahu wants the US to kick up some dust with Iran.
I'm sorry, did you just say "protect Israel" ? Israel has 400 nukes and Iran has ....wait for it.......NONE.
You again? Why do you insist upon making ridiculous comments on each post?
HOPE = Futurized Beggary.
CHANGE = BiStagflation.
Oil at anything less than $115 is synthetic price fuckery, even at SP500 850.
NEWSFLASH: Barry Soetero, or whatever his name is, is now deploying Marines to-wait for it- Australia!!!! And it's about time. Them Aussies have always been a serious threat what with their big knoives and all....
don't forget canada! highly dangerous that country.
FYI, buried in the announcement is "pending regulatory approval".
It will not be forthcoming. Brent is down today because Europe recession is more and more likely. Brent is European oil and is available to China, but mostly Europe. WTI would also be down today on similar concerns but for this announcement.
The US pays, at its refineries, a 2/3 Brent -- 1/3 WTI price for oil. This means most of this year our refineries (on average) have paid about $108/barrel. Any move to jack WTI's price (which this is clearly doing) would raise our prices paid.
There will be no regulatory approval.
there is really no reason for oil to be so high. chemically, it's primarially composed of hydrogen can carbon. they are among the most abundant elements on earth.
http://expose2.wordpress.com
Using that logic, and I'm not arguing with you here, humongous tits should be free seeing as how silicon is the most abundant element on earth.
Larry Kudlow said that Crude at $100 reinforces the underlying growth in our economy. Take that!
POW!
WAP!
CRACK!!
60's era Batman fight noises in relation to Oil versus the economy.
holy crap batman, what terrorist do we fight next?
Syria.
Then Iran.
Then Israel.
Nobody actually thought Israel was going to be left out of the liberation party did they?
The chinese will be the ones to "liberate" Israel since the Americans are adding so much "value" in the MENA region. China will be exceptionally diligent in following the western "lead" in MENA.
Fonzanoon,
Kudlow is a GOP mouthpiece. It's surprising that he would say that the economy is strong when the buffoon spends 90% of his broadcast telling us how bad the economy and how it's all the liberals fault while completely ignoring that this crap was started and imploded while the GOP and wall street colluded on the rape of middle America. Kudlow is a complete piece of crap!!!
I forgot imply the sarcasm. Kudlow makes me sick.
Who can ever forget this fuckstick and the millions of times he said "Cinderella" in 2007 and 2008? There is a special place in hell for the likes of sellouts and shills like Larry Kudlow. He will spend eternity being forced to have sex with women and Maria Bartiromo will be denied a makeup kit or botox. That will truly be horrible for these demons.
Goldilocks. Cinderella was his guatemalan maid.
Green sharts
Damn, I knew it was Goldilocks but typed Cinderella. "Not too hot....not too go screw yourself, Larry".
It was Mr Kudlow's "price theory" that "the moderation in the economy itself will lower oil prices" that set the stage for Wall Street's great boom for the next three decades. "where is that theory now" would be a good question because obviously the production numbers have turned around dramatically and to the plus side.
There are few people I wish death upon, but Kudlow is one.
Lucky Americans...
www.energy.eu/
Yeah, and I'm expecting 400k+ BLS numbers too next month. /sarc
When can a Fed member or informant "leak" QE3--I need to know exactly when to cover my index shorts.
Wack a mole time - print to cover here - print to cover there.
Well it better be a 12 mth program then, gotta last till elections.
Insane.
With not a single viable mainstream Republican presidential candidate they may be able to print like raped apes. We know that no time will be given to Ron Paul. The media, like the dons of high finance and policing organizations, have completely abdicated their responsibilities in lieu of a few shiny beads.
ok then -how about MSM on a pole?
That last sentance is so funny because it's so true
But the question is why? Other commodities are not so strong at all. Is it a "winter 2007" redux? Oil was strong with not so much fundamental support then.
Liquidity flows into the inelastic curves.
People gotta eat, drink and drive.
Build houses or bridges or ships or skyscrapers?
Not so much.
Yep, fuel is required by most to function on a daily basis. Plus it is a nice place to invest cash instead of equities or bonds.
The only problem with pusing up oil is that it is the most visible commodity price for Freddy Football and Sally Sex in the City. They drive by those little prices on gas stations all day long, en route to their road to nowhere.
Acutally gas prices are stable. WTI is surging but Brent is dropping. Gas prices are based on Brent. Joe Schmoe consumer so far has been insulated.
You're half right.
They are based on Brent.
But they are up about 25% YTD. That's not stable.
It's a good place to invest as long as you don't get MUTHA FUCKIN' GLOBALLED.
Didn't Gretel like getting glow-balled by you out in that dark and spooky forest?
But commodities like soya beans are not so strong. If the oil market has priced in QE3, why aren't other commodities following? There is backwardation in crude oil now. I remember back in the 1980s and 1990s, backwardation occurred more often than contango. And backwardation seemed to accompany every recession back then.
Probably some geopolitical saber rattling going on behind the scenes that we are not yet aware of.
And gold is painting a different picture too... if this huge WTI move was QE3-driven, why would gold be down as much as it is? Genuine question... not getting this!
I'm confused too. Brent is down today and has been range bound for a long time. Maybe somebody has been unwinding his "short WTI, long brent" position.
Brent is down because Europe has no hope of maintaining GDP growth and thus reduces consumption.
WTI is up on this Cushing flow to the Gulf Coast announcement, which makes it available to Brent's markets and raises its price towards Brent.
Stop thinking about oil as something to trade. It's not about markets. It's about dying.
Yeah, living the dream. Oil surging, gold slumping. That makes perfect sense. I'm going long Mars and short Earth as a hedge.
Here I finally get to do my very first "physical PMs bitchez."
Even you Robo, even you.
Edit: My first junk too. Wooohooo.
meanwhile natural gas at a 52 week low.....must mean the Zion State to launch attack on Iran any hour...
Natural gas storage levels in the US are high right now (i.e. nearly 6% above the 5-year average as of last week):
http://ir.eia.gov/ngs/ngs.html
So I guess Israel will bomb Iran any day now. Either that or agents are selling Euros and buying up oil, rather than USD, or JPY, since the oil market has enough liquidity to absorb huge outflows of Euros.
As long as the Dow is over 12,000 everything is good.
Remain calm. All is well. All is well!
http://www.youtube.com/watch?v=zDAmPIq29ro
Mom? Is that you?
give it a rest with QE3, it aint gonna happen when the market is stable to up just about everyday...we are over 1200 not under 1100 in the ES...so lets relax
"we are over 1200 not under 1100 in the ES" --for how much longer my friend?
from the looks of it for much much longer, dont fight the ponzi scheme is what i say, be a part of it...and the more negative articles you see the more the ponzi up scheme works....
QE3 would collapse the YEN, and Japan would implode. It's not going to happen, unless Defcon 1 is reached. And if BOJ prints, ECB & Fed will print further, and you'll have a currency war, which will lead to hyperinflation.
Tame inflation will not provide enough cover for QE3. Tame inflation plus a severe drop in the market should do it though.
The "severe drop" + tame inflation plan sounds good enough for me. Just give me that "severe drop" though without career politicans panicking and blabbing instantly to save the market.
Does anyone really expect anything less from an eCONomy that remains full of unprosecuted fraud (no rule of law) and that is built upon infinite growth in a world with finite resources. Hedge accordingly.
Infinite growth is so 20th century. The paradigm now is infinite wealth transferrence from the 99.99% to the 0.01%, aided and abetted by government and GSEs. Growth is no longer allowed, at least not in the USA. If growth were good, the Keystone pipeline project would have received a green light.
If I saw gold going through the roof, QE3 would be just as good as 100% certain. But, alas, oil chooses to fly alone.
If gold get even remotely close to $5,000 an ounce, the confiscation begins. QE is still a no go, lot's of dollars around the world looking for a place to go, the last thing the Bernanke wants is to add additional motivation for all those dollars to come flooding into the U.S. economy. The stagflation of the 70's won't even register. We are now several orders of magnitude beyond that kind of scenario.
Gold will not reach $5000, until one day the paper markets crash and it goes up to $10000. My humble opinion only. And confiscation is hardly going to happen, while most of the gold is the hands and vaults of the people making the laws. Still, as laws don't apply to them, everything is possible.
One of the ways to keep gold out of the hands of the 'unwashed' is to have the price of consumables (such as oil) at such a cost as they don't have any spare saving capacity to incrementally hoarde it...
Just saying...
So... Sit at home... live off of food stamps & grow some of your own food... watch the idiot box or blog on the internet all day... Avoid mostly taxable incomes & hopefully exist off a government entitlement... When it arrives, ride your bike down to the local coin shop & exchange it for something shiny...
The NEW capitalism...
POTEMKIN VILLAGE IDIOT
I look at it another way.
If paper PMs were monkey hammered, QE3 looks more likely.
The longer PMs stay elevated the less leeway the printers have with credibility.
I agree, besides look at the credit markets. NO ONE gives a shit about "paper" anything because they don't trust it or anybody else. Fucking halarious because every bank is every other bank's counterparty and no one believes anybody else's books because they are all cooking the shit out of the numbers and are in fact insolvent. Let this ball of shit die already.
Sounds reasonable, apart from the oil surging bit.
North Dakota is the place to be now. What are the chicks like there?
See what you made me search for? http://www.amazon.com/DAKOTA-CHICKS-Hooded-T-Shirt-MEDIUM/dp/B005DVSVFC
If you want to keep your coffee down in your body, do NOT click on that link provided by Gief Gold Plox.
Astute observers may also spot the bone.
Not great, lived there for a couple years and it is cold as shit!
BOXY
Sturdy.
As sure footed as the ablest mountain goat and as sturdy as the most dependable ox.
Built like a $40 mule!
How much time have you spent around horses? These are your North Dakota women. Oh yeah, you better be hung like a thoroughbred if you are to get their attention.
Expensive.
Corn-fed....
less angry at their bank
I think Bernanke is propping up the Market and that is why Oil is up so much. The Street knows he is secretly pumping.
QE3 already priced in, Dow should have been below 10K by now.
WTI passing 100, but Brent hasn't moved. The spread had been something like $26, now it's $10. WTI is a trader's commodity, Brent is the real price of oil.
Gasoline reversed after being up about .04.
At my gas station here the price doesnt move minute to minute like an ES future...$3.75 still.
Yup, and that's up about 25% YTD.
IMO we are simply seeing a repeat of a few years ago: speculation of the commodities markets due to continued global crisis and central bank/big financial player manipulation.
There is nowhere to "invest". thus, liquidity is sloshing around everywhere it can. Gold/Silver have made admirable runs, and now some of that money is moving towards Oil again. Soon we'll likely see it ramp back into food.
This will of course be yet one more nail in the economy, plunging us even deeper into depression.
we'll see price appreciation in the things we need (energy, food), and continued price depreciation in the things we don't.
I especially expect appreciation in the things we buy with cash (again food, energy), and depreciation in the things we buy with debt (houses, cars, etc).
This, btw, can happen in both inflationary and deflationary environments. The process IMO is not happening due to inflation/deflation... it is happening due to the breakdown of the financial system. Loss of law plus loss of trust = what we see here.
I've seen many ZH folk cheer for this. Unfortunately, I doubt that many of us will like the end game, no matter how well we prepare. A caveat emptor world is not enjoyable. ask anybody who lives in lawless lands.
The cheering by many is not for the cavet emptor but for the great reset that is so desperately needed.
2 thoughts:
I hope we can survive the great reset.
and
I hope you are understanding the comments better than me. There are clearly some thoughtful people around here who understand that things must change, and we must radically alter the way our future economy functions. There are others who, if I understand them correctly, envision a world where they will become the new masters of the universe due to their gold, silver, and ammo holdings...
If we truly have a rapid reset with a collapse of major banking powers (desirable on one level) I anticipate a truly facscist state. with probable civil war The police shoot people with tear gas and rubber bullets just for expressing their first Amendment rights. What do you think the global powers will do if the world banking system fails, wiping out the creditor class (the top 0.1%)?
If the chaos is truly great enough we will likely enter WWIII, and probably with nukes.
it will be very tricky to get through this alive and with any reasonable amount of human rights.
Best to keep a few copies of the Federalist Papers in the bunker too. For re-education when the time comes.
How do you figure youre safe without food and weapons stored? I dont get that. You figure the stormtroopers will see you as a 'good guy' and leave you alone? Ask those from the gulags and concentration camps how that idea worked.
How do you figure youre safe without food and weapons stored?
I don't. (and don't think I've ever said so, have I?)
I also don't think I'll be safe with food and weapons stored.
And that is my point.
I've said this a few times before around here: if/when the shit really hits the fan, it's going to hit the fan. No matter how much we all prepare, almost everyone of us will be losers, and we will likely look back on these times with fondness, even though current times are totally fucked. that's just how screwed almost everyone of us will be.
Thus: although I agree we need a global financial change, and I agree that we should try to protect ourselves as best as possible (PM, water, arable land, food, and yes, ammo), that is an entirely different than cheering the coming collapse or blithely thinking that I'll be ok just because I did those things.
Also: there is not one shred of data anywhere that would indicate that we as a species can survive a "quick crash" of a global financial bubble as large as we have, with so many nations armed to the teeth. Depressions have a way of leading to World Wars you know. The last one we dropped not one, but TWO atomic bombs on a country... one of them after they had all but surrendered. You don't think we'll drop a few nukes? Does anybody here think that their ammo will protect them from nuclear winter?
no, it is not me who underestimates the ferocity and the evil that lives in humans, nor what they will do to the innocent.
But perhaps I misunderstand the people who scream "Gold to $50,000/oz, bitchez" comments. Maybe they aren't really cheering the collapse of the global financial system for personal profit. It could likely just be them letting off steam knowing that we are all fucked.
Good post my friend. True, worst case scenario, we are all fucked. Best case scenario, if you are prepared, you come out better on the other side. Probably somewhere in the middle is most likely. Many people on ZH are prepared and just want this thing to unwind NOW rather than wait another 10 years so they can get on with it.
nuclear winter or total collapse of the energy grid (oil & electrical)..... get to know a good practical engineer or better, read a couple applied engineering books yourself. take apart your lawnmower, the rear hub of your bicycle, the washing machine. learn the principals on how they work. TSHTF will marginalize everyone. but having some kind of understanding how a waterwheel works, how to make a wooden gear train or just a wooden bucket just might be worth something when the lights go out and the trucks stop rolling.
Hmmm...
don't get me wrong, don't disagree with your thoughts but also know that we can't predict the future. As capitol and labour continue to dislocate violence is almost a certainty and once that begins the level it reaches is unknown but........like you said "There are clearly some thoughtful people around here who understand that things must change,"
Even though i'm a proven skeptic of the US of Oligarkistan I also believe there is a fundamental underlying voice of reason buried beneath a mountain of corrupt ineptitude that will prevail
in that country. It may take three decades but as much as i hate to say it sometimes I'm still long the crack whores of the world. Plus they still have a big rock of DoD.
Good post, Hmm....
"we'll see price appreciation in the things we need (energy, food), and continued price depreciation in the things we don't."
"I especially expect appreciation in the things we buy with cash (again food, energy), and depreciation in the things we buy with debt (houses, cars, etc)."
Biflation Bitchez.
Somewhat off topic. Can someone here explain this to me? I’ve never understood the idea that fractional reserve banking increases the money supply. If Farmer A brings you 100 gold pieces and you keep 10 and loan 90 to Farmer B. He buys something from C. C brings you 90 gold pieces and you keep 10 and loan 80 to D. D gives to E and to you 80. You keep 10 and loan 70 to F.
Now count them up. You have 30 and F has 70. There are still 100 gold pieces. It does not increase the money supply or cause inflation. It seems to me, the only thing banking does is keep them in circulation, and allow bankers to collect interest from everyone. All it increases is DEBT, in the form of…more interest paid to you, than you are paying to depositors.
I mean, am i missing something? So how is deleveraging deflationary?
it depends on your definition of "money".
in your case:
-A has 100 pieces of paper gold. (that's what his bank statement would say)
-C has 90 pieces of paper gold (that's what his bank statement would say)
-E has 80 pieces of paper gold (that's what his bank statement would say)
-F has 70 pieces of real gold
-Bank has 30 pieces of gold.
remember: although A,C, and E have "paper gold" (and not real gold) they can take their paper gold to a store and use it to buy things. Thus, their paper gold acts as money.
therefore there is 100+90+70+30 = 290 of "money" out there.
it all works so long as everybody believes that their paper money is backed by gold.
this, by the way, has NOTHING to do with Central Banks, despite some people's confusion. This process happened back in Italy hundreds and hundreds of years ago prior to central banks.
However: Central Banks allow this process to be supercharged. (for reasons beyond this post).
hope that made sense!
But if A has 100 gold pieces on account and spends 30 on a TV, then the bank's reserve is depleted, yes? I suppose that if A spent 50 on a TV, then the bank (assuming there are no other reserves from other accounts) must borrow 20 from someone...another bank or possible the FED, and this would actually increase the money supply, having a diluting affect on existing money.
But, in my mind, the 50 remaining paper gold pieces sitting in A's account at the bank, doesn't dilute the money supply.
It seems to me, Base Money, is much more inflationary than M3. I read somewhere that illegal drug trade is crucial to controlling inflation because of it's sponge effect on $100 bills.
It's because farmer A brings you 100 and you loan out 1000. 900 out of nothing. What you describe is full reserve banking and must be prevented at all costs along with Congressional control of the money supply...
I just passed something, but it wasn't crude over $100.
http://vegasxau.blogspot.com
I bet Big Ben is busy selling as many contracts as he can to squash it right now.
So WTI is expecting monetary easing. I would wager that ECB will be the one's hitting ctl+p this time around before we do. QE3 will only happen if CPI less F&E goes negative, though we are quite close to it. I still have yet to figure out how forced inflation is a signal of prosperity, and why deflation is the devil.
Is there an ETF for toilet paper?
TLT.
UUP and FXE
ETF is toilet paper!
Guys, Crude has been above 100 for most of 2011....it's called Brent
bomb bomb iran
bomb bomb bomb iran
it just isnt the same without joh
Isn't that a Beach Boys' song?
Bomb bomb bomb, bomb bomb Iran.
Oh bomb Iraaan, oh bomb Iraaan...
It must have been nice to be able to drive along the Pacific Coast Hwy in a Pontiac Catalina with 18 cent gas and that song (the original) playing on the AM Radio. That was the Golden Age-- where are we now, the Tin Age?
John McCain...
http://www.youtube.com/watch?v=o-zoPgv_nYg
http://www.youtube.com/watch?v=o-zoPgv_nYg
Wall street is within a few thousand's of its post collapse high.
The economy itself has never recovered! The government (FED) has been holding this monstrosity up so the whole thing does not collapse.
If any of the FED monitoring committee spying on ZH (we know you are) are listening. Let nature of the markets take its natural course of creation/destruction and you will see just how fast things fix themselves.
The current policies of treasury and the FED are designed to prop up, monetize, extend and pretend to keep the existing 1% feeding at the trough!!!
These policies bankrupt and burden not only current but future generations. This is a sin beyond words!
that is their whole intent!
i thought it was being pumped into the gulf of mexico for a sec.!
global meltdowny gives me head explody.
No QE3 unless market drops below 11,000. Political suicide otherwise.
ps. Wouldn't it be QE4? The MBS purchases + Twist = a QE.
Exactly, go ahead and drop the markets 25%, then we'll see about this QE3-4. Fact is theyve been printing and buying everything in sight non-stop to get us just to this point.
What would be the lifespan of the next QE, a few days or so before everything unhinged again?
The irony is the market is at 12,000 because the heroin addicts are waiting for that QE4 pop. But, they don't realize that by crowding in and waiting for the pop, they're not letting the market drop where it needs to be in order for The Bernank to justify QE4.
It ain't about QE "3" "4" "5" etc. The GAO report on the Fed made clear that the publicly-announced programs are the tip of the iceberg of Fed intervention. We now have continuous hidden/semi-hidden monetization of U.S. government debt, Jim Willie has been consistently banging the drum on this for 4 years now. HOW ARE WE FUNDING OUR DEFICITS? War Bond drives??
Reversing direction of an 800km crude pipeline
Make no mistake Iran attack imminent
Please explain the logic that gets you to this conclusion..
Talk about compression....
I expect Brent to be weakish for a day or so while the trade unwinds....
I doubt it is tradable unless you are very nimble...
AS LONG AS gold , other PM's and commodities don't spike, OIL is just speculation on a war. If it did happen OIL @ $200 would crush all economies given the precarious state that Europe nand China are already in.
The Hog.
which would prove once and for all that SPECULATION and leverage are the ONLY thing controlling the commodities markets
Funny thing is that as oil prices rise, economies sink and when economies sink, and especially when a sovereign "subprime" is unfolding, oil prices perform deep dives just as in 2008, 150 t0 30 in 6 months or so......, this time it might be a dive to a higher number but a deep dive nevertheless for those that buy the parabolic stage and don't get out in time....this will trigger major deleveraging phase II.
Meanwhile the US will borrow and fund all its 2012 deficit at cheap rates again and the economy will eventually grow again in 2013, before the next deleveraging phase III starts........
I think in a way this is brilliant as it would eliminate QE3 and European printing as the bulk of the funding for bonds would come from the deleveraging tsunami. A few trillion in sales from stocks and commodities would buy a lot of Bonds. Gold would become a good buy againat $1,050.
oil.......its the new black
black is beautiful.........
All well and good, but keep your eye on NYMEX wholesale gasoline. $3.00/gallon is a more relevant 'redline' for the US public. Still down near $2.60 now.
Mr. Market seems to be aware that crude prices are in the grip of exchange rate/political/Euro/US Supercommittee chaos so gasoline is showing a lot of hesitancy/lag in following big price moves in crude.
Chart for wholesale gasoline
http://tfc-charts.w2d.com/chart/RB/W
"This is another $200 billion in GDP that was just taken out."
No it wasn't.
gold and silver? still under the thumb................sick of this shit.........
And just hours after Robotarder announced the trade is 'Blue horseshoe is selling oil'...DANG!
$220 oil sayeth Nomura analysts. PMs to follow....
But "you can't eat oil...or gold for that matter."
This cant be QE3, nothing happening in other commodities or stocks .. this is something BIG, how much cash required to move the crude market this much and against the flow .. its completely disconnected now this stinks of some major players with inside knowledge of a major seismic market event about to hit crude!!
War oil.
Cars are more effiecient now. Consumers are busy driving shopping to worry about it.
I called Bernanke, he told me that that is still 40% down from the peak thanks to his work.
I was watching CNBC's interview with Steve Forbes. He mentioned that the Saudi King was 86 and in very bad health. I was looking into it a little more and the crown Prince was self anointed in Oct 2011. The guy is 78 and might have problems accending to the thrown. Imagine the oil price if the Saudi king dies... interesting article.
"Traditionally, the king chooses his heir. But Prince Nayef was chosen by Allegiance Council, a 37-member body composed of his brothers and cousins. Abdullah created the council as part of his reforms and gave it a mandate to choose the heir."
http://www.msnbc.msn.com/id/45068106/ns/world_news-mideast_n_africa/t/sa...
This morning I noticed an Occupy the Federal Reserve movement.
The protesters are getting warmer...
This morning I noticed that gold is not the 'investment' that the longs would like you to believe.
1770 compared to 1300 1 year ago. YOU. ARE. DUMB.