I’ve been reading a lot of bullshit about the record spread between WTI and Brent crude. Even though the spread widened significantly during the Egyptian revolution, some fucktards think WTI should be shit upon and no longer taken seriously. I want some of you big hat wearing, Texas motherfuckers, to opine on this matter, as it may have massive implications for investing in oil stocks. Basically, some are blaming the emergence of new tar sands crude coming on line in Alberta, Canada, for flooding the storage tanks in Oklahoma via homo-pipeline. In other words, Brent is a better representation of global crude demand, while WTI is just American stockpiles. I have a hard time believing this theory, mainly because WTI has always been the defacto standard for global demand.
In case you were wondering why iBankCoin was down earlier, the answer is simple: we were doing field tests for our new internet laser beams. I’ve developed new offensive weapons that instantly track who is reading iBC and makes it possible to annihilate said hard drives upon a press of a singular button. In layman’s terms, watch your fucking mustache.
As an aside, I fired three clients last week for annoying me. I really do not like clients: inherently, they are stupid ingrates. I haven’t accepted a new client, aside from this big oil exec last year, for several years. I get offers on a daily basis but regularly tell people “fuck off, I have my own money.” Back in the old days, I’d clamor for the opportunity to accept a million here or a milli there. However, back then is not now and right now I don’t give a shit.
I am sure you are reading this scripture and hoping for some stock ideas. Well, you will be gravely disappointed, as I am not in the mood to help out small plebs. In this day and age, “The Fly” is into decadent/obscure shit, like eating alligators or dinosaur eggs. I don’t have time for this internet shit.
Having said that, you fuckers have less than one week to join the 3rd Annual iBC March Madness contest. It’s open to The PPT members only, due to the cash prize of $1,000 being allotted to the lucky fucking winner. Thus far, we have about 100+ sign ups. I anticipate about 400-500 sign ups by week’s end.
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Looking forward to more on the WTI-Brent Crude spread and what the hell it means.
Thanks, Fly!
FIRST!!!!!!!!!!!!!!!!!!!!
Bitches!
Oh, no. Am getting dinosaur eggs alll over my white gloves. Will have to purchase a new pair.
http://www.youtube.com/watch?v=jFJoWB-_UPU
Here’s your dinosaur eggs.
Sean at Live indicated that China leaked data for tomorrow on CPI is less then the estimate of 5.0%ish, fwiw. China can never keep a secret.
well actually its Reuters…4.9% is the buzz, but that is because they changed the method of adding in the food prices
Bigtime heavy short interest by speculators in USD from COT report on Friday.
anyone with a job can hardly consider themselves well to do…. the very idea is almost ungentlemanly.
There must be a little something to the idea that WTI is landlocked while Brent is not. The reason I believe this to be true is the spread between Louisiana Light Sweet and Mars Blend to WTI is also quite large. LLS / WTI is up to 17.50 and Mars Blend is at 11.25.
Stuff that can be put on boats is going up. WTI is not seaborne and continues to lag.
Which is why the midwestern refiners are going apeshit. They can coin money at this spread. Won’t last as they are drawing down Cushing as fast as they can….
Keystone II pipeline will fill ‘er back up.
SHENGHAI RIPPING TITS.
As you were.
China needs to copy us and start taking everything out of their CPI that fucking matters, THey can start with food and gas.
POOF! Problem solved… No inflation!!!!
Fly,
Zerohedge posted a story last week about the crack spread between WTI and Brent through the analysis of a JP Morgan executive (weird, huh?) and it seemed plausible, else Tyler wouldn’t have posted it. I read it here on your site from your news stream if you want to search for it.
I can’t wait to hear from The Fly on his plans for Valentine’s Day as well as from your neighbor, Steve. Lucky Mrs. Fly!
the opec fuckers lied about how many years were left till peak oil hit,they lied to the tune of 30 years.they hit peak already in a lot of fields,and their scuttlebutt is, is that they are pushing for 100 dollar oil, north sea,or light sweet.keep a close eye on the rbob as well, as they are not trying to push the price of oil too fast,cause then that would push the rbob quicker as well,which would show up at the pump as 4 bucks a gallon,plus. they will have accomplished the trick if they can get a hundo,clean, per bbl, and keep gas right at,or under 4 bucks, then mission accomplished.
it’s all about the rbob, the dude that owns the gas station where i go,hates when i tell him gas prices are going up before he knows. then a few days later he aks me, how do you do that. then i say , do what.
HEY
If Shenghai is ripping tits, WTF is my FXI up only a smidge premarket??? I honestly fucking hate FXI worst tracking ETF known to man…
HFT…..don’t fight the fed….see the ball be the ball. PMOHOMO
No Inflation
Ho Housing
No Jobs
No Confidence
“In the last two years the US has accumulated national debt at a rate more than 27 times as fast as during the rest of our entire nation’s history. Metaphorically, speaking, if you are driving in the right lane doing 65 MPH and a car rockets past you in the left lane 27 times faster . . . it would be doing 1,755 MPH!”
Oops I thought this was Denninger’s site.
ho housing..is that housing for ho’s……..lol
Hell yes Mo Ho’s
This is the funniest thread ever. Fly good to see you sack a customer. I did that few times and it feels great.
bummer … was hoping to become a client 🙁
13G filings must be at an all time high.
For a Merger Monday, we are getting lots of take-unders?
Brent is becoming more dominant by volume. Alberta doesn’t send down anything resembling WTI. It’s way heavier. It is usually about $12 to $30 less expensive than WTI because it is less useful (less gasoline for the same volume of oil, and greater cost to ship and refine, and deal with heavy metals, sulfer byproducts. I imagine that you are approaching correct though. WTI matters less and less as an increasing volume of crude produced is either Canadian heavy, or Brent. WTI production (roughly average US oil chemistry historically) has been declining for a long time already. Now Venezuela, Canada, and Middle East are more significant for Yanks. Especially Canadian imports. Internationally, almost everything else is Brent. North Sea, Nigeria, much of Aftrica, and Russian oil comes out of the ground as the more valuable (make more useful products from the same volume of crude) Brent. That’s a coles notes for you. China buys mostly Brent for their strategic stockpiles. Look no further.
Also, USA use to control the Brent/WTC balance. Once WTC became too expensive, the USA Refiners would just buy the cheaper Brent. If Brent rallied over global tensions, USA would go to WTC and being the biggest user of Oil in the world, Brent would drop in price. Now, it does look like “what US Refiners are buying” is just not as important? But China is upping Gas Prices so maybe they won’t need as much Brent either?
“In other words, Brent is a better representation of global crude demand, while WTI is just American stockpiles. I have a hard time believing this theory, mainly because WTI has always been the defacto standard for global demand.”
Yeah…the U.S. used to be the defacto standard for the world’s number one economy. How did that work out for you guys?