Zerohedge has the coverage. I’m merely a trading fool with a sharp intent to gamble in stocks until I die. This is very reminiscent of Hurricane Katrina. Any of you fuckers remember that?
Oh, it was sublime — not the death and destruction part, but the rise in oil and especially natural gas. Stocks were fucking ripping out spines and tits to the upside. The initial move was grande, but it lasted a solid week — with plenty of money to be made for Johnny Come Latelys. I suspect, we will see the same type of trading action next week, as the world tries to adapt to 5 million barrels per day being stricken from their reservoir of oil. It is going to be outrageous.
Brief snippet from WSJ:
A coordinated drone strike hit at the heart of Saudi oil production on Saturday, sparking an enormous blaze and forcing the kingdom to shut down about half of its crude output, according to people familiar with matter.
Iran-alled Houthi rebels in neighboring Yemen claimed responsibility for what would be one of their largest-ever attacks inside the kingdom.
The Saudi production shutdown amounts to a loss of about five million barrels a day, the people said, roughly 5% of the world’s daily production of crude oil. The kingdom produces 9.8 million barrels a day.
I don’t care who did it. I would not be surprised to learn they did it to themselves, on the heels of Saudi Aramcos IPO. What I am interested in are the consequences. People are throwing out scandalous numbers like $100bbl next week. Fuck all of that. This is a temporary shut-down, but it can last weeks. My back of the envelope prediction suggests crude will easily Jimmy up to $75 next week and sustain those levels — because the market is going to interrupt these attacks as a permanent risk to Saudi oil production. Having said that, you’re gonna want to get long a fuck load of crude stocks, especially those evil frackers, into the melee.If you enjoy the content at iBankCoin, please follow us on Twitter