Idiot tankers were waiting in the middle of the ocean for the January crude contract to expire, so that they could sell their oil at the much high February prices. Much to their chagrin, everyone was doing this. As a result, oil cannot get traction here.
I suspect there is a lot of panic selling taking place, with the physical owners of crude—who have been crushed into one thousand pieces of dust.
To see strength in refiners is equally fucktarded, since their margins are compressed to nothing, sans diesel and jet fuel (how long will that last?). People are assuming crude will trade up, effectively enriching the refiners (VLO, WNR, SUN, TSO) with lots of fiat currency.
But you fuckers are just guessing, aren’t you?
Question:
Why do you think oil should trade higher than where it was in 2002-2003?
Oil is down from $140 to $40 in 5 quick months. The ramifications of this “homo hammer” has not been reflected in the underlying securities, in my opinion. There will be bankruptcies and rumors of bankruptcies.
Men who work in tar sands will be fired and told to go fuck themselves. The jackass who locked in $500,000 per month rig rates will be castrated and fed to a pride of lions.
I suspect the chickens will be coming home to roost, very early, in 2009.
Trade accordingly.
NOTE: I am long ERY, DUG, short XOM and short RIG.
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DITTO!
8)
One more point ~ FAZ is turning into a loose slot machine for Donny. Fuck Yes! Up 22% and counting since I bought the cheap whore last week.
RIG is a BUY!Looking to add more.Keep on shorting.
All of the tankers should just steer towards the Somalian pirates, get hijacked, and then file for the insurance claim(s).
That’s the most sense you’ve made in a long time.
Sans means without.
Example: I had a peanut butter and jelly sandwich, sans the jelly.
fiat currency… ha… buy gold
Diesel and Jet fuel still have good margins, dick.
RIG is in serious trouble of fucking themselves.
Lots of contracts contingent on $60 crude.
NEW LOWS by 1/12/09.
So what of the natty cos like CHK that sold properties at the market peak and hedged 70-80% of their production … buy hold or sell?
During the last oil bust in the early ’80’s, oil service stocks either went to zero, or lost 80%-90% from their highs (and those were the “good” companies).
I told you bulltards I was coming back to steal your Christmas rally. I killed that motherfucker!
New lows are days away!
Most people send out fruit and nuts, I send out gift wrapped homo-hammers.
Fly,
Back in September of 2007 Oil was at $80 and RIG was above $100.
Now, Oil is at $40(down 50%) and RIG is at $44(down more than 50%). I think the homo hammer is being reflected.
Hey Jeff answer your fucking door!
I like how chickens gets underlined
Tis the season
From Ritholtz.com:
Thierry Magon de La Villehuchet, who ran a fund that invested with Bernard Madoff, was found dead at his Madison Avenue office today, a New York City police officer at the scene said. The death appeared to be a suicide, he said.
De la Villehuchet, 65, was a founding partner and chief executive officer of Access International Advisors, according to a marketing document. Access invested $1.4 billion with Madoff, who was arrested on Dec. 11 for allegedly running a $50 billion Ponzi scheme.
Access’s LUXALPHA SICAV-American Selection invested solely with Madoff, the company said. Access said last week that it was working with lawyers to assess the situation. No one answered the phone at the company today. A call to his home wasn’t returned.
“Why do you think oil should trade higher than where it was in 2002-2003?”
I don’t think it should.
Assuming global GDP has expanded by 3%/year, then you’d expect global oil production to have to increase by roughly 3% in order to keep oil prices relatively stable.
I only have EIA data going back to 2004, but oil production has increased from about 83 million barrels per day in 2004 to about 85.7 million barrels/day today.
A 3% increase. Voila!
Late day fuckery, here we come.
Asshole Dip Buyers will feel the full fury of the Homo Hammer
With regards to RIG:
It’s not that simple. What you need to understand is that it does not make economic sense to lease RIG rigs any longer.
The price should be substantially lower.
Mushroomz:
The world economies are far worse off now, than in ’03.
And, to make matters worse, there is way more supply.
The largest oil fields in the world are set to go online in early ’09.
The Somali Pirates are broke! All their ransom was invested with Madoff. They have applied and have been granted Canadian Visas and will be working in the tar sands.
Best Trade? Get long Ft McMurray real estate
Why does the word “chicken” pull up a Contentlink ad for ‘Looking for Chickens’?
It’s 3:30 PM. Do you know where your shorts are?
Time for the hedgies to manipulate and go long into the close.
Assholes.
I used to trade RIG when it was about 28 back in about Dec. 2002, as I recall. Has a ways to go.
TC – that’s pretty funny, I was just thinking the same thing. I kind of woke up from a deep investing slumber this summer and said to myself – I am not holding on to this bitch through another downturn – and let her go. RIG and I shall meet again someday – but not anytime soon. There is always lag between oil price drops and the related service co drops. I am sure this timeframe is compressed in this era of leaner co’s, but back in the 80’s it took about 10-12 months. Not looking forward to fallout here in H-town.
FLY, that bitch KIM is going in the wrong direction, you’d still short it going forward?
What was RIG earnings back in 2002?What will RIG earnings be in 2009?
‘oil is dead. XOM loses 10pts in one session.’
headline from the future.
Why do you think oil should trade higher than where it was in 2002-2003?
Because dollars were worth more then.
________
During the last oil bust in the early ’80’s, oil service stocks either went to zero, or lost 80%-90% from their highs (and those were the “good” companies).
NOV high $92.70 — 7/02/08
NOV low $17.60 — 11/20/08
Price differential: 81%
________
Thierry Magon de La Villehuchet*, who ran a fund that invested with Bernard Madoff, was found dead at his Madison Avenue office today, a New York City police officer at the scene said.
____________
*(AKA: “Laaaawwwd Dooooouuuuuchhhebaaaaaaahggg!”)
_____
Fly,
What’s your take on CVX?
Oil to $10 – OR S&P to ~1200 – pick one.
Short Newfoundland !! Most of them are working on tar sand projects,