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WTI Drops Most In 3 Months
Commodities are broadly under significant pressure but nowhere is it more noteworthy than in Crude (even though the USD is only modestly higher on the day). Brent is falling but WTI is underperforming as it trades down on the day at the biggest drop in over three months. Brent-WTI is leaking higher though as the focus shifts increasingly to Brent. WTI and Brent are trading down close to the SPR-rumor spike-low levels as China and Russia both raise the rhetoric against the US on Iran.
Charts: Bloomberg
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Dis-inflation
That is all.
Just statistics:
· Iran population in ~78 millions; Chechnya ~1.5 M
· The Iranian landscape: mountains and forest.
· Russia is fighting Chechens for the last 15 years with no end in sight in the similar environment
· Iran can field up to 15 million army and militia. NATO ground war in Iran is totally out of question
· Iranians are highly educated and are capable of using sophisticated weaponry -- big difference from Taliban
· Iran has all necessary capabilities to heavily damage Israel, Saudi Arabia, Kuwait, and other US allies in the region
· Every single passing day is in Iranian favor
The only blanks left to fill are
· How stupid are Israeli leaders?
· How far is American Elite ready to go damaging US vital national interests?
· How far are Iranians ready to go fighting back?
PS
· Americans were very lucky since Vietnam, N. Korea, Libya, etc., did not fight back the West vital interests on their own territory.
· As we all know, Al Qaeda was/is a CIA proxy.
Damn evil speculators. I demand an inquiry
It's only evil speculators when the price goes up.
For housing it's opposite.
Que random idiotic statement to fix this quick...
The sabre rattling cacophony is deafening now, someones going to have to make a move. Seems to me everyone is totaly checkmated and their plans for 'total world domination' are totaly failed.
'China and Russia both raise anti-US Israel war in Iran rhetoric' yea....do something real I'm dying to see ANYONES actual move here! Daring em. Rattling the same old rusty sabres of 'impending invasion any minute now' for what, 2 years? Blah blah blah.
The can't start anything because their isn't enough fuel on the planet to finish it.
So like mouthy school yard brats they circle around doing nothing.
Yup.
someone help me figure this out tvix down 2% unvy up 4% wtf
yeah I'm looking at the same time. TVIX is whacked.
ETFs versus futures
trade futures not ETFs
easy game for banksters is etfs
http://soberlook.com/2012/03/tvix-short-squeeze.html
Unless WTI and Brent drop together and go below $50, we still have a problem.
It doesn't matter WHAT they do, we still have a problem.
Money printing.
Yes, but timing is everything. Lower prices buy more time and at the end of the day I still need to buy diesel to deliver my product.
But don't worry Tom I will accept your silver in exchange for some of our produce, so hey, you will still have something to eat.
OH but dont expect gas prices to come down from $4 avg, at all.
With rumors of coup plots and purges in Iran's biggest ally it would seem to be an opportune time for Israel to strike. If the Israelis calculate that China is too unsettled to respond war will come sooner rather than later, assuming the Iran thing isn't just theater-for-the-masses. Consider putting on a small bet for this weekend through next week.
Oops, wasn't important enough to post twice.
Just a shake out before war with Iran starts.
After all possible options are exhausted, Obama, with no thoughts to the consequences for his re-election and with grave resolve and a steely determination to spare America any other terrorist tragedies, takes decisive action. The media goes wild and presents the green tracer streams in all their brilliant night vision glory. Embedded reporters hunker down on ship deck, filming missle trails as they head towards the terrorists. The fourth movement of Beethoven's 9th thunders on home theater systems across the nation:
Joy! (Joy!)
Joy! (Joy!)
Joy, beautiful spark of the gods
Daughter of Elysium,
We enter, drunk with fire!
Obama has saved the world!
RUMOUR HAS IT: GERMANY AND FRANCE BUYING GOLD
Hell if it was REALLY supply/demand, oil would be around 50$-60$ a barrel.
Yep.... sure thing....
How much do think a marginal barrel of Bakken or GoM oil costs?
Anything much less than $70.00 a barrel and thet will shut Bakken down .
Username is somewhat appropriate.
If you want a real reason for a downtick in oil, it's that end of Q1 is just days away and the GDP price deflator is very gasoline dependent.
If you wanted to manipulate Q1 print, you do it with oil.
Perfect con game to lower gas prices. The neverending US con games plays on.
Good news = bullish
Bad news = bullish (it could be worse!)
Neutral news = bullish (at least it's not bad!)
Yep. Been that way for the last 4 years. Totally ridiculous.
Can someone remind me again why there is a nearly $20 difference between WTI and Brent?
Because Brent is the benchmark for light sweet crude that can be put on a tanker and shipped anywhere...WTI is for delivery in landlocked Cushing... Because of the Bakken and Tar Sands, there is currently a modest glut of landlocked oil in the mid-continent...
Bakken has half the energy (about2.5 million btu/gal) and sweet crude has about 5 million btu/gal so the refineries do not want Bakken/Alberta as it cost more to refineand does not make good fuel. the energy is lost in the extraction method getting it out of the sand.
What is the source for your figures?
The Bakken is light sweet high quality oil, e.g.
http://www.argusmedia.com/Petroleum/Crude/~/media/C21F9F5995164371B7D51651F950F49E.ashx
This is the second time you've made this error. Read your follow up comments. Your information is incorrect.
There is 5.6 million BTUs per barrel in Bakken oil, just as there is in Canadian oil sands output oil. What arrives at the refinery is 5.6 million BTUs/barrel. It's not NGL type numbers that are far less. This is actual crude with proper energy numbers.
Oil went up? The cause is Evil Speculators: queue maniacal laugh!
Wait, it went down? Oh, that's because of the Fed & our man Bernanke!
It's not <que>; nor is it <queue>, it's CUE!!
As in CUELESS!!
Que? Perhaps he was speaking of putting his cues in a queue.
Top-shelf article from Gregor...
http://gregor.us/oil/understanding-the-new-price-of-oil/
Must read for anyone wishing to understand global oil market dynamics....
my neighbor's aunt makes $67 hourly on the laptop. She has been fired from work for ten months but last month her check was $20142 just working on the laptop for a few hours. Here's the site to read more .... http://lazycash9.com
Shoot yourself.
Oh ya for sure, click here to sign up
Another excellent overview about mid-continent crude dynamics
http://www.all-llc.com/publicdownloads/ALL%20CUSHING%20OilPriceDiff.pdf
From July 2009 but still relevant....
http://stockcharts.com/h-sc/ui?s=$BRENT&p=D&yr=0&mn=3&dy=0&id=p92210759562
Proportionally today WTI & Brent don't look too far out of whack with each other.