iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,725 Blog Posts

OIL COLLAPSES LIKE CHEAP LAWN CHAIR

This shit is drifting in the wind now. WTI is off by a staggering 6% now.

One or two things come to mind with crude.

Price action is rigged. Some sort of deal with Trump and Saudi Arabia was reached due to Wapo journalist killing. But that might be a stretch.

Or, China is slowing much faster than we previously expected. There is no third option. Choose.

Interestingly, crude stocks are only down by 1-3%, as if this collapse isn’t happening now.

 

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15 comments

  1. ferd

    No big skin off the Saudi royals ..they pump and it hurts their enemy – Iran. Also, that Iran and Russia get hurt with lower oil prices, pleases Bibi.

    At some point though, you’d think that the Saudis would feel pressure from the other OPECers and Trump from our domestic producers …and from a flash of common sense …not wanting to destroy our own production capacity.

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    • tha pirate

      Common sense? Please explain why LOW oil prices, which HURT nations like Iran, Venezuela, Russia etc.. nations which HATE America is somehow a ‘bad’ thing? Also don’t lower oil prices HELP U.S. factories, US consumers etc etc??

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      • tha pirate

        -Arrrrr…..

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      • numbersgame

        He is just saying that low oil prices hurt US shale oil producers.

        Suaid is stuck between a rock and a hard palce: if they reduce production, their crappy econom suffers and others pick up the salck, including the US. If they don’t reduce production, then oil prices stay low and again their crappy economy suffers.

        It’s not 1980, and that’s why they are trying to diversify. Instead of investing in their own economy, they are doing it through a sovereign wealth fund and investing in other countries that know what they are doing. That is a terrible long-term plan, as it will not help people that actaulyl live and owrk in Saudi Arabia – unless they are conencted to the Royal Family. It’s a recipe for civil unrest.

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        • momono

          It won’t “hurt” US shale producers unless it gets way below $50. Some US producers have breakeven in the upper $20s now with many under $40. They make less profit, but none are hurt at $50 oil.

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      • ferd

        Thank you numbers …also pirate, some of the rise in nat gas (a byproduct of domestic oil production) is the market saying that that it is concerned about destruction of domestic productive capacity as a result of the oil plunge.

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  2. soupbone

    Saudi/Opec drive the point home about reducing production, known to be unpopular with Trump? It’s a statement from somewhere in any case.

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    • numbersgame

      Trump is a 1-dimensional thinker. He is on the record as saying lower oil prices are an end goal in itself. That is why his administration talks tough on Iran sanctions, but is actaulyl letting them sell oil to all their major customers.

      “Washington has pledged to eventually halt all purchases of crude oil from Iran globally but for now its eight biggest oil clients — China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey — can continue imports without penalty….
      ‘I could get the Iran oil down to zero immediately but it would cause a shock to the market. I don’t want to lift oil prices,’ (Trump) told reporters.
      https://www.nbcnews.com/news/world/trump-allows-iran-continue-selling-oil-its-8-biggest-customers-n931891

      Trumpsters: so now Iran can sell oil, but doesn’t have to stick to the nuclear agreement. Iran will probably send Trump a Christmas card for this gift.

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      • ferd

        Our breaking the agreement that WE negotiated with Iran …as well as all the sanctions talk is simply to kiss up to warmongering neocons here and in Israel …it would be much better for the world, including Israel, if Trump would just blow Bibi directly.

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        • tha pirate

          WTF are you talking about?? WE did not negotiate anything with Iran. There was NO ratification. Obama bypassed the process and did not make a treaty, but instead made a ‘deal’. A deal made by one President can be undone by another President. A treaty (like the Panama Canal Treaty where the USA turned the Canal over to Panama 100 years later) can NOT be undone. Had Obama gone through Congress properly, the ‘deal’ could not have been undone – but then Congress and the American people did not want the ‘deal’.

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          • tha pirate

            No disrespect intended Ferd, but “I have a pen and a phone” does NOT equal a treaty laddie. Arrrrrr.

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      • ferd

        Will Fly remain a coward until his sons are drafted?

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  3. roundwego

    Market is looking to crash again.

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  4. fxtradepro

    Now if DJT could only control Powell like a Saudi Prince – We’d be be making ATH’s by Friday. Good luck out there, it’s getting hairy. – We should bounce from here albeit for a few days …. should.

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  5. numbersgame

    Fly, honest question: what earnigns and forecast/guidance are you looking for in NVDA earnigns on Thursday afternoon?

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