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.
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lights out
WTI hold $48 damnit. Or is it time to consider getting back into FRO?
Fucking Swiss.
WNR is pissing me off. Should I cut my losses here?
No, keep your losses and cut off your WNR.
+1 …. I love WNR jokes!
Very nice.
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.
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.
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”.
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.
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
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.
10 down days out of the past 12
crazy
PPT PPT PPT
Random curiosity (based on the last line of your previous post), were you watching Disclosure last night?
No
You need a vacation.
At least turn your computer off @ 3:30 AM.
And now we’re up 50+ points. Yeah!
Okay maybe just 14…. 🙂
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”…
fly you like a de la rue play here for the greek election?
FWIW , got to 60% cash this morning.
One needs to see the Swiss for the selfish assholes they are.
this market giving off the vibes that it is doomed. sorry
Went to bed all happy last night too.
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.