iBankCoin

IT HAS HAPPENED

Saudi Arabia has defeated us, once again (extra 9/11). WTI is now trading at a premium to Brent crude. When I was long refiners, back in 2011-2012, the main driver was the $15-25 spread between WTI and Brent. As of this moment, WTI is trading  at $48.90 and Brent is $48.75.

Should this trend continue, it spells extreme and immediate doom for US refiners. Stocks like WNR, HFC, ALJ, DK and MPC are extremely risky here, albeit down significantly from the highs.

The market has opened and it ran higher by 90 points, only to melt down like a snowman in July–currently vacillating near the unchanged mark. Earnings out from BAC and C were abysmal, as well as BBY.

Oil and gas stocks are the silver lining of this tape right now, which is an affirmation of why you should diversify into different sectors, even when they’re underperforming.

The Dow is now down 41. Fuck my life.

If you enjoy the content at iBankCoin, please follow us on Twitter

27 comments

  1. smartestone

    lights out

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. esquared

    WTI hold $48 damnit. Or is it time to consider getting back into FRO?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. og

    Fucking Swiss.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  4. mr. nakata

    WNR is pissing me off. Should I cut my losses here?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  5. boyaj

    After reading BBY’s comments and seeing BAC and C’s results, my big takeaway (and confirmation of my prior belief) is that the United States won’t be raising interest rates any time soon due wages being stagnant and minimal inflation overall.

    Oil has been on a downfall since late Sept-early Oct, and over the holiday season, you would’ve expected the American consumer to spend the extra savings at consumer discretionary retailers, like a BBY.

    That didn’t happen because despite the savings in the drop of oil, it was counterbalanced by decreased wages and an economy that is the only house standing in a burned out neighborhood.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • heaterman

      We will see in the coming quarter just how much of our own house is still standing after factoring in the loss of about $1T in oiled patch related business activity.
      The drillers are sending people home and one local who has worked in North Dakota and Wyoming for the last decade said he has not seen such panic in the patch in over a decade.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • boyaj

        Totally agree.. And it just won’t be the drillers. It’s the all the downstream companies associated with the drillers, as well as the retail stores near these “boom towns”.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
    • heaterman

      Herr Doktor Fly. It should be brought to your attention that regarding coffee (nectar of the night time gods) The lighter roasted beans contain more caffeine than the darker roasts.
      I your goal is pinning your eyelids open and making your ticker skip a beat or three, a light roast will do the job with dispatch.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  6. djmarcus

    FYI – this is likely due to Shell’s receiving of approval to export oil…. the market is now pricing in that U.S. oil can now exported vs. just refined products prior

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • rigged game

      Thats why we should NOT build Keystone XL. Why give away our precious crude at low prices? Keep it in North American ground for OUR future generations.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  7. smartestone

    10 down days out of the past 12

    crazy

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  8. itsgold

    PPT PPT PPT

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  9. rosenrush

    Random curiosity (based on the last line of your previous post), were you watching Disclosure last night?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  10. tradercaddy

    You need a vacation.
    At least turn your computer off @ 3:30 AM.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  11. Marc David

    And now we’re up 50+ points. Yeah!

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  12. stratoboozer

    11:05 crude is crashing. If Euro does QE, oil (priced in USD) will keep sliding.
    Germany has said they want to avoid inflation “at all costs”…

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  13. deluxe186

    fly you like a de la rue play here for the greek election?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  14. rangersfan

    FWIW , got to 60% cash this morning.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  15. budh

    One needs to see the Swiss for the selfish assholes they are.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  16. smartestone

    this market giving off the vibes that it is doomed. sorry

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  17. og

    Went to bed all happy last night too.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  18. rangersfan

    God damn, knew that move in oil was BS, on an OPEX day. Let all the puts expire and show the bag holders the door.

    • 0
    • 0
    • 0 Deem this to be "Fake News"