U.S. Shale Producers Increase 2017 Hedging After Bump in WTI

There are several reports floating around, discussing the ‘clamor’ to hedge WTI near $50. Each time WTI nears $50, a wild group of desperate, near insolvent, shale producers step into the market, ironically, with millions of dollars to hedge their 2017 production. By doing this, they ensure a genteel, profitless, business for another calendar year — but one without having to declare bankruptcy.

“We are seeing significant producer flows which early estimates suggest could be the highest we have seen all year,” Adam Longson, commodity strategist at Morgan Stanley in New York said in a note to clients.

Crude futures surged by almost $5 a barrel since OPEC surprised traders by agreeing to trim output at a gathering in Algiers on Sept. 28.
Harry Tchilinguirian, head of commodity research at BNP Paribas SA in London, said on Friday that OPEC had thrown a “lifeline” to U.S. shale firms, prompting them to hedge “in droves.” The bank has “seen many queries coming through” from producers, he said.

In spite of these reports that depict half disheveled multi millionaire oil men, ‘clamoring’ to hedge production, according to Tudor Pickering, just 16% of production is hedged for 2017 –compared to 39% for 2016. Clearly, and this goes without saying, there’s going to be a lot more clamoring if the fuckers in the oil patch want to remain halfway insolvent throughout the next calendar year.

Based on CME data found available on the interwaves, there was a 10% spike in the WTI June 2017 contracts and a 6.5% jump in the December 2018s.

So much fucking clamoring.

Apparently, this man has been around saying this stuff for a long time — but the operatives only now decided to make him known.

I want to take the time out to wish my father @billclinton a happy 70th birthday. We'll talk soon. #BillClintonSon pic.twitter.com/WDcuC9yAT1

— Danney Williams (@danney_williams) August 19, 2016

I want to thank one of my supporters for asking @billclinton if he had any comments about me being his son. pic.twitter.com/s7E1hLFrzf

— Danney Williams (@danney_williams) August 22, 2016

I thanks everyone for supporting me! #ClintonKid pic.twitter.com/qWex9lQi6c

— Danney Williams (@danney_williams) November 29, 2015

It is the time for surprises, after all. It is October.

You go research it. I have zero interest, other than to inform the people of great fuckeries.

Good news for all of you neocons out there. It appears by blaming Russia for everything under the sun, from getting in the way of sponsoring terrorism to the hacking of emails which revealed wanton corruption at the DNC, there are consequences.

Putin announced today that Russia was suspending their agreement with the US, due to “the emergence of a threat to strategic stability and as a result of unfriendly actions by the United States of America towards the Russian Federation.”

They also blamed Washington for not living up to their end of the bargain, saying that we failed “to ensure the implementation of its obligations to utilize surplus weapons-grade plutonium.”

This was an accord signed by Secretary Clinton and Foreign Minister Lavrov, back in 2010, which called for each side to dispose of 34 tonnes of plutonium.

Clearly, this is in response to both our aggression in Syria and the incessant saber rattling out of the Clinton campaign. Errantly, they seem to wear ‘fuck Russia’ slogans on their bodies, like badges of honor. We make greater efforts at restoring peace with tin pot countries who pose zero threats to national security. But the one country that does pose a threat, Russia, for reasons that defy sanity, we constantly prod and prick and show an enormous amount of disrespect towards. It’s as if our policy leaders were purposely trying to restore the cold war — likely in an effort to ‘enjoy’ an increase in spending for the military-industrial complex.

Generals gotta general.

Russia concludes: “now, taking into account this tension (in relations) in general … the Russian side considers it impossible for the current state of things to last any longer.”

The fact that the pound is down 1% on news that Theresa May said Britain would trigger article 50 in March (the mechanism necessary to leave the EU) suggests that the market didn’t think the U.K. would do it. There have been numerous stories and rumors regarding whether or not May would follow through with her promise to leave the EU.

Now we know she’s serious, as Britain heads towards what many call a ‘hard BREXIT’, which means leading without first getting assurances.

After falling for two years, following China’s crackdown on grift and wanton depravity, it appears Macau is back. For the month of September, gaming revenues surged by 7.4% — according to the Macau Gaming Inspection and Coordination Bureau.

Last year September revenues had declined by 33% — sending shares of WYNN clown rapingly lower.

While revenues are still down 7.5%, bulls will likely make a spirited effort to clobber and injure casino short sellers with energetic violence today.

Stocks to watch: WYNN, MGM, LVS, MPEL and ETF BJK.

Former head of the Trump campaign and consummate professional in destroying the hopes and dreams of the Hillary Clinton campaign, Roger Stone, is out with a word of caution to the Clintonites basking in the ‘win’ of revealing Trump took a tax write off during the depths of his financial hardship — pre-comeback.

Wednesday@HillaryClinton is done. #Wikileaks.

— Roger Stone (@RogerJStoneJr) October 2, 2016

In an interview with Infowars today, Stone revealed that his sources, who are close to Assange, suggest the ‘Wikileaks motherload’ of information that will be ‘devastating’ to the Clinton campaign will be coming Wednesday — which would explain the sudden ‘leak’ of meaningless drivel by the NYT, in an effort to paint Trump as some sort of crazy billion dollar losing tax cheat. If someone has a billion to write off, you fucking write it off.

It’s a non-story.

BEHOLD.

This guy Jake is such a bitch. I like people like Rachel Maddow, Bill Maher and other people who plainly wear their biases on their sleeves. I can respect and accept another person’s beliefs, even if I think they’re suicidal. Hell, if the collective wants the world to burn under the fires of a corporate run governance, so be it. But it’s guys like John Harwood and Jake Tapper who really irritate me, posing as hard news guys — always ambiguously gay and trying to ‘get to the bottom’ of topics.

As you can see by this interview, clearly, he’s Hillary’s bitch.

The losses are impressive and with vigor. Saudi stocks are hitting 7 year lows, the lowest since the good olde days of Lehman (note: Deutsche Bank is NOT Lehman). Moreover and in spite of the new accord that will bring OPEC production halting to a staggering level unseen since January of 2016, no one really gives a shit about the prospects of Saudi prosperity away from the great, fucked, oil trade.

Amongst the hardest hit are in the insurance sector, as the Saudi financials circle the drain awaiting swift and an energetic beheading.

Solidarity -10.7%
Enaya -10.5%
Salama -10.05%
Allied Cooperative -10%
Trade Union -9.9%
Alahli -9.9%
Al-Ahlia -9.7%

Stocks plunge by more than 3% to 2009 levels.

And, here are the most impressive downside movers for the day.

Executives from Siemens, Daimler, Munich Re and BASF told German newspaperFrankfurter Allgemeine Sonntagszeitung they backed the bank.

“We stand with Deutsche Bank,” BASF chairman Juergen Hambrecht said.

Deutsche Bank is facing a $14bn ($11bn) fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008.

Its shares fell sharply last week on fears the fine could cripple the bank, at one point dropping to their lowest level in 30 years.

Reinsurance giant Munich Re’s chief executive, Nikolaus von Bomhard, told the Frankfurter Allgemeine Sonntagszeitung that he had followed the news, but saw no need to “reduce our business volume” with Deutsche Bank.

Dieter Zetsche, the chief executive of luxury car firm Daimler, also backed the bank, saying: “Deutsche Bank has a great tradition, a solid foundation and beyond that, a good future ahead. Of that I am convinced.”

Siemens boss Joe Kaeser said that the bank’s management “is pursuing the right goals and has our fullest confidence”

On Friday, Deutsche chief executive John Cryan insisted the bank’s finances were strong, telling staff in an email that the lender had become the object of “hefty speculation” and that “new rumours” were causing the share price to fall.

Reports have also suggested the bank could be close to reaching a deal over a much lower fine of $5.4bn, boosting the shares.

Mr Cryan will attend this week’s annual International Monetary Fund meeting held in Washington where he is expected to try and negotiate a deal with the Department of Justice over the fine.

Last week, the German government also denied reports that it was preparing a rescue plan for the bank – Germany’s biggest lender – in case it could not afford to pay the US fine.

While Deutsche is a relatively small bank globally, it has significant trading relationships with all of the world’s largest finance houses.

In June, the IMF identified it as a bigger potential risk to the wider financial system than any other global bank.

The global shit show that is the bond market now encompasses $12 trillion in bonds yielding less than zero. The fuckery isn’t secluded to just the government market, but also corporate. As the supply for bonds dissipates from the market, making degenerates at the ECB and BOJ fraught with panic over where to ‘invest’ their monopoly money, you should expect to see more corporate bonds sink into negative territory.

courtesy of your benevolent central banks

What can go wrong?