Crude Plunges As SPR-Release Rumor Trumps QE/Isaac Efforts

Tyler Durden's picture


UPDATE: Isaac downgrade (from potential CAT 2 to CAT 1) is helping

In the immortal words of the movie 'Something about Mary', "we got a bleeder" in Crude oil. The front-month WTI contract just snapped over $2.50 lower as SPR-release rumors reassert on fears of Isaac's impact (and of course Jackson Hole).


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Mon, 08/27/2012 - 09:26 | 2740658 machineh
machineh's picture

So much for the 'Isaac is the new Katrina' touts.


Mon, 08/27/2012 - 09:27 | 2740662 GetZeeGold
GetZeeGold's picture



The rising price of gasoline will offset the price in crude.....soooo basically we're still screwed.


Mon, 08/27/2012 - 09:32 | 2740677 Quinvarius
Quinvarius's picture

Nuking refiners hedges repeatedly is best path to higher gasoline prices.  The hilarity of the head scratching behind rising gasoline prices as the oil interventions continue is a source of great joy for me.  Now the refiners get to pass on even more losses to the consumer.  Maybe a few more of them will burn down their buildings for the insurance money this time as well.

Mon, 08/27/2012 - 11:53 | 2741000 old naughty
old naughty's picture

"Issac trumped"

Men doing God's work.

Mon, 08/27/2012 - 09:53 | 2740717 aint no fortuna...
aint no fortunate son's picture

"...contract just snapped over $2.50 lower as SPR-release rumors reassert on fears of Isaac's impact (and of course Jackson Hole)."

...and of course November 6

Mon, 08/27/2012 - 11:56 | 2741015 vast-dom
vast-dom's picture


Mon, 08/27/2012 - 09:34 | 2740681 maxmad
maxmad's picture

Not to worry, as New Orlean's own Emeril Lagosse would say HAARP will "kick it up a notch!"

Mon, 08/27/2012 - 10:47 | 2740854 Lewshine
Lewshine's picture

Easiest trade of the year! Let's see, War in the middle east lay in wait, Issac about to smash all production in the gulf for next two weeks, minimum. While Ben remains in control of the market's every breath - Oil hits 97.40 this morning, I short 300 Sept. contracts knowing Ben will Hilsenrath the oil market any moment, cuz you just can't have oil spiking headlines for the sheep to read - And WAALAA....News release "oil reserves"...Oil drops almost 3.00 bucks. Ben's nirvana remains...I get to go to San Francisco for a month and play tourist. You got to think like a Fed reprobate!!

Mon, 08/27/2012 - 09:27 | 2740660 TideFighter
TideFighter's picture

Introducing my 2013 Rumor. It runs on bullshit and gets 105 mpg. 

Mon, 08/27/2012 - 10:35 | 2740819 BobPaulson
BobPaulson's picture

Not to mention it can go from 0 to 60 in three retellings.

Mon, 08/27/2012 - 09:28 | 2740661 LawsofPhysics
LawsofPhysics's picture

buy the dip. duh. (after cashing out your shorts and puts of course)

Mon, 08/27/2012 - 09:27 | 2740663 ArkansasAngie
ArkansasAngie's picture

The weather giveth and it taketh away.


Mon, 08/27/2012 - 09:29 | 2740668 fonzannoon
fonzannoon's picture

Hurricane Bernanke getting downgraded and looks like it won't make landfall Friday.

Mon, 08/27/2012 - 09:29 | 2740665 Dr. Engali
Dr. Engali's picture

China is very grateful for the cheap oil. I'm sure they will love to transfer it from our reserves to theirs.

Mon, 08/27/2012 - 09:29 | 2740669 LawsofPhysics
LawsofPhysics's picture

Correct, and the government will happily accept their paper on your behalf.

Mon, 08/27/2012 - 13:23 | 2741243 viahj
viahj's picture

didn't we trade that paper to China for cheap plastic crap, now they are trading it back to us for  we're in great hands...thanks Ben/Timmy/Prez/Congress

Mon, 08/27/2012 - 09:29 | 2740670 Jlmadyson
Jlmadyson's picture

While RBOB up 7 cents.

Bullish for anyone but the consumer heh.

Mon, 08/27/2012 - 09:30 | 2740671 the 300000000th...
the 300000000th percent's picture

the REAL hurricane is coming, head towards the exits folks if you havent already

Mon, 08/27/2012 - 10:39 | 2740829 BobPaulson
BobPaulson's picture

That one is coming so slow you could crawl to the exit and make it on time. Of course if you do, you will still only be among one in a hundred that saves themselves.

Unfortunately in a world with few ants and many grasshoppers, the majority grasshoppers can just vote to confiscate the belongings of the ants, even if there isn't enough to go around, so the ant needs to have two stashes to come out OK. Them pharohs were smart with their false tombs you know.

Mon, 08/27/2012 - 09:30 | 2740672 slaughterer
slaughterer's picture

Still shorting WTI.  Feels good this morning.  

Mon, 08/27/2012 - 11:27 | 2740935 Meesohaawnee
Meesohaawnee's picture

dto the way to go

Mon, 08/27/2012 - 11:27 | 2740936 Meesohaawnee
Meesohaawnee's picture

dto the way to go

Mon, 08/27/2012 - 09:30 | 2740674 lsbumblebee
lsbumblebee's picture

And tomorrow we will be told that it was only a rumor.

Mon, 08/27/2012 - 09:30 | 2740675 yogibear
yogibear's picture

It's now don't  hide the fact your using the SPR to get re-elected. 

Mon, 08/27/2012 - 09:30 | 2740676 101 years and c...
101 years and counting's picture

remember: up oil because of evil speculators (not the """strong""" economy).  spx up because of the """strong""" economy, not evil speculators.

Mon, 08/27/2012 - 09:32 | 2740679 Inthemix96
Inthemix96's picture

Get your collective heads round this bitches.

The price of oil and every other thing in this whole wide world is zero, nothing, nada, ziltch.

Cos' our central banks print free money from thin air to give to banks to charge us non existant interest on.

Think on that this morning boys and girls.

You angry yet??

Mon, 08/27/2012 - 09:34 | 2740683 Juan Wild
Juan Wild's picture

that gap's gonna fill up and then some! BTFD

Mon, 08/27/2012 - 09:35 | 2740685 jmcadg
jmcadg's picture

Like the SPR release last time made any significant difference in output available.

Utter bullshit. Markets totally rigged - apologies for stating the obvious.

Mon, 08/27/2012 - 09:35 | 2740687 Dr. Engali
Dr. Engali's picture

Katrina was downgraded to a cat 3 before landfall.

Mon, 08/27/2012 - 09:39 | 2740691 Quinvarius
Quinvarius's picture

I trust no data that money can buy.  Frankly, that is pretty much everything.  Dead bodies make good TV ratings.  So I am sure we will see the true after effects regardless of the pre-game baloney toss.

Mon, 08/27/2012 - 09:40 | 2740696 khakuda
khakuda's picture

Obama needs an excuse to dump SPR on the market pre-election, especially in front of Bernanke's money print.

They are not stupid.  They want to juice the markets pre-election with a money print, but know that the effect on gasoline prices will hurt them, so they need an SPR dump to offset that negative.

Mon, 08/27/2012 - 10:47 | 2740853 ParkAveFlasher
ParkAveFlasher's picture

And just for a little crunch, pour on a billion rounds of yum yum dum dums to liven up the ensuing socioeconomic carnage.

Chaos is just desserts!

Mon, 08/27/2012 - 09:40 | 2740697 caimen garou
caimen garou's picture

price of crude drops on more bullshit cat 2 to cat 1 at landfall giving people the sense that storm won't be so bad, if it does come in at a cat 2 or 3 and people get killed from it they will blame noaa and bush.

Mon, 08/27/2012 - 09:41 | 2740699 HungrySeagull
HungrySeagull's picture

Burn baby Burn...


As in the money not paid or will be paid during the shuttering of the Production fields.


This is not the storm you ware looking for. Look at the gas stations instead.

Mon, 08/27/2012 - 09:43 | 2740700 orangedrinkandchips
orangedrinkandchips's picture

Immortal is right!


That movie is sacred! Classic and I'd argue Matt Dillon plays comedy the best! He's really a comedian (and I love his brother too)......I mean, to this day, the part where Dillon is talking to Mary after the driving range in the parking lot where he confesses his real passion.....


Mongo etc......omg



Mon, 08/27/2012 - 09:42 | 2740701 surf0766
surf0766's picture

The downgrade comes from a group who said it would hit Tampa... Nice...

Mon, 08/27/2012 - 09:47 | 2740709 slaughterer
slaughterer's picture

Isaac has no teeth my friends. Obama doing everything to pull down WTi before Sept. 3.  He wants 4 more years.  

Mon, 08/27/2012 - 09:48 | 2740710 Juan Wild
Juan Wild's picture

the algos are taking out the longs now. but the shitty part is if you BTFD like most will drop even more. If you dont will go up...rinse repeat...a fleecing machine.

Mon, 08/27/2012 - 09:50 | 2740711 orangegeek
orangegeek's picture

The next wave down has begun after WTI oil retraced about 0.618 of its previous drop.



Mon, 08/27/2012 - 09:53 | 2740715 dingoj
dingoj's picture

Here goes the rollercoaster, boys. Raise your arms and enjoy the ride!

Mon, 08/27/2012 - 09:56 | 2740723 slaughterer
slaughterer's picture

Retest of WTi $93.  See you there this afternoon.  

Mon, 08/27/2012 - 10:18 | 2740771 ThisIsBob
ThisIsBob's picture

I'm glad Issac is downgraded.  Could it mean that those who persist in living by the sea below sea level will need a smaller bail out?


(pun intended)

Mon, 08/27/2012 - 10:38 | 2740827 otto skorzeny
otto skorzeny's picture

everyboby knows the "Chocolate City" can't swim

Mon, 08/27/2012 - 10:17 | 2740772 chistletoe
chistletoe's picture

funny how they may have released some lubrication


but they failed to pass any gas .....

Mon, 08/27/2012 - 12:04 | 2741029 SmittyinLA
SmittyinLA's picture

The SPR release is really a "gift" to the refiners that CAN remain producing, the release will have no impact on the price of refined fuels as all America's current refineries are running at 100% of their current maximum production especially with all the "incidents" they have to repair, we also have to supply Venezuela whom had a lil refinery incident last week (they have refined fuel contracts).  

Granting refineries running at maximum capacity more oil won't lower prices, it will just increase their profit spread.  

America's greedy oil refiners thank the Obama administration and look forward to raping the taxpayers again when that SPR needs refilling again at much higher prices.  

Mon, 08/27/2012 - 12:25 | 2741088 JJSF
JJSF's picture

Going long these rumors has been the easiest money ive ever made..for over two years now

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