Todays EE Oil Beatdown

43 posts / 0 new
Last post
Wed, Jun 29, 2011 - 12:11pm humahuaca
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

SDS

Huma, I spoke about SDS in TF's main thread.

Your well acquainted with SDS by the sound of it but I wrote a cautionary thread on why I'm suspect of it at this point.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Wed, Jun 29, 2011 - 2:27pm
humahuaca
Offline
Joined: Jun 15, 2011
35
1030

sold my HOD

Ok, I chickened out, sold my HOD for a $20 profit, after fees I made $8, woo hoo.

I still think oil could go lower, but probably not today, or tomorrow, so I might as well relax.

SDS: I generally sell puts against it, which have all expired out of the money, so it's been great. I wouldn't hold it long term.

I rarely hold leveraged ETFs for more than a day or two. If I think it will be longer, I buy the unleveraged versions.

Wed, Jun 29, 2011 - 3:02pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Hard Lesson Learned

Thats a lesson learned the hard way by myself recently regarding the ETF's. Ouch!

They decay in value inspite of any positive underlying equity price movements if that movement is slight and gradual. If the ETF trades upward but cautiously the option traded sideways at best and usually backwards. It takes a shock or sustained volatility in the corresponding market for the ETF option to really show a pulse. It sure doesn't work tat way when anything negative or perceived as negative happens and then the ETF really responds downwards. At least the options on the SDS ETF in my experience reacted that way.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Wed, Jun 29, 2011 - 3:40pm ¤
ghost
Offline
Joined: Jun 23, 2011
237
1104

Thinking / Wanting to take a

Thinking / Wanting to take a position before the end of trading today. Still too early perhaps?

Wed, Jun 29, 2011 - 5:18pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Obama/IEA: Crude Kicks Their Ass

Obama and the IEA - Egg on the face

Bruce Krasting on 06/29/2011 12:51 -0400

On ZeroHedge.com

On June 23 I wrote about the Obama/IEA decision to intervene in the global crude market. I hated the plan. One of the points I made against it was this:

Is (the IEA intervention) about teaching a lesson to OPEC? I am concerned that this is a factor. The US wanted OPEC to up production. That didn’t happen. So the bad boys who produce oil just got a shot across the bow.
Watch if this angle on the story gets “play”. It would piss off those bad boys and they will retaliate. Does O really think he can take on the world oil market?
-OPEC will respond. “We” will pay a price for this.


Bloomberg has a story out just now that Saudi Arabia is not so happy about this and some cut backs in production just might be in order. From the article:

Oil rose in New York, extending the biggest gain in six weeks, amid concern OPEC may reduce output in response to the International Energy Agency’s move to release oil stockpiles.
If IEA countries are releasing stockpiles Saudi Arabia won’t increase production as much as expected,” said Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich in Vienna.
“There are concerns Saudi Arabia will cut production” in response to the IEA move, said Roland Stenzel, an oil trader at E&T Energie Handelsgesellschaft mbH, said from Vienna.

Oil is on a tear as a result of this (and other factors). If the end result is that OPEC cuts off production by a percent or two the ultimate cost to global consumers will be measured in the hundreds of billions.

I also said this last week. I’m now certain that I was right:

-Obama will get some egg on his face with this one.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Thu, Jun 30, 2011 - 2:28pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Todays Oil Beat Down Chart

https://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic

Check out the crude price action exactly at 11:00 a.m. as usual.

Everyday, some commodity or segment of the market always moves right after the treasury auctions and then whatever electronic algo-trading madness that follows.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Fri, Jul 1, 2011 - 9:29am
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

TBTF Feel Invincible?

IEA Replaces One Crude Supply-Limiting Cartel, OPEC, With Another: The TBTF Banks ZeroHedge.com 7-1-11

crude released by the Strategic Petroleum Reserve going into circulation, "Some of the oil being released from the U.S. Strategic Petroleum Reserve to bring down prices may be held by traders for later sale rather than sent directly to refiners for processing into gasoline or other fuels." In other words, instead of being held in storage by the US government, the oil which is supposed to be used immediately to alleviate supply pressure, will be held in storage by the Too Big To Fails, most likely in storage tankers floating offshore, just like back in late 2008, early 2009, to be released only when the prevailing price is sufficiently higher (not to mention courtesy of added demand from the SPR as it seeks to refill it 5% depleted inventory). But wait, wasn't the release predicated upon it being a supply emergency with a need for immediate release?

Ironically it is JPM's own Lawrence Eagles, head of oil research, who said that "every additional barrel of oil stored in the U.S. is a barrel that does not need to be imported, ultimately freeing up barrels to move to Europe. It worked very effectively after Hurricane Katrina in 2005 and should do so this time around." What he did not specify is held by whom. And here is the kicker: "The DOE has no preference for bids from refiners versus traders and both have participated significantly in past sales,” an official from the Energy Department wrote in an e- mail. “There is nothing to stop buyers from putting the oil they have purchased into their own storage." Well in that case the DOE would be advised to know that JPM, which is expected to bid and purchase a substantial portion of the crude to be released, together with Goldman Sachs, have already been alleged to be a supply-limiting cartel when it comes to LME commodities. In its infinite stupidity, the administration and the IEA have merely moved supply constraints from one oil cartel, OPEC, to another: one led by the Too Big To Fail banks.

More:

The U.S. Energy Department is offering 30 million barrels of light, low-sulfur crude for sale, half of the 60 million barrels to be released by International Energy Agency member nations to make up for the loss of Libyan oil exports during the civil conflict. The government closed bidding for the oil yesterday.

The sale was “substantially oversubscribed,” with more than 90 offers to purchase oil, the department said in an e- mailed statement. The department expects to award contracts by July 11 and announce purchasers and sales prices at that time.

The oversubscription indicates that supply disruption is a factor and that all 30 million barrels will be placed into the market, an administration official said. The administration will continue to monitor the oil supply and is prepared to act further, according to the official.

Representatives of trading companies including JPMorgan Chase & Co., Morgan Stanley (MS), Hess Trading Company and Koch Supply & Trading LP joined Valero Energy Corp. (VLO) and Statoil ASA in questioning Energy Department officials June 28 about shipping options and requests for waivers of the Jones Act.

The Jones Act restricts the shipment of goods between U.S. ports to American-flagged vessels. Most oil is shipped on foreign-flagged vessels.

A lack of American-flagged vessels of adequate size means a buyer of SPR oil who wants to store the oil or send it to refineries on the East Coast may require a waiver of the Jones Act. There are two available tankers, according to a list on the Department of Transportation’s Maritime Administration website, along with barges that can hold up to 233,951 barrels. The per- barrel cost to ship oil typically is lower with a larger ship.

The tankers are the Overseas Chinook, currently in Brazil, and the Overseas Cascade, anchored in the Houston Ship Channel, according to AISLive shipping data compiled by Bloomberg. Each can hold 300,000 barrels of oil, the minimum parcel that can be loaded on a ship from the SPR, according to the notice of sale.

Government officials on the conference call said that oil could be loaded on one foreign vessel and later delivered back into the U.S. on a different foreign tanker, provided that information on both ships was included in the waiver application. A waiver would not be needed if oil were loaded and then redelivered to the same berth at a particular terminal, according to the officials.

In other words, any banks winning crude, will put it on a ship somewhere with promises of future deployment, although when that future point comes, is unclear. In the meantime, as the mid-summer sun rises, WTI will pass $100 very soon again and more SPR oil will have to be transferred from the US government to JP Morgan once again.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Tue, Jul 5, 2011 - 7:13pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Todays oil price

That 60 million barrels of oil that was released becomes more and more of a payoff or a settlement between unknown parties IMO.

Could China have demanded oil as compensation due to the Libya war and the monetary damages they have incurred on their investments there since the war started?

Seems possible to me because that oil release was out of the blue and made absolutely no busimess/market sense anyway you look at it.

It's possible that it was a purely desperate political move by the Fed and White House, but it seems so ill-conceived that if that was the case we are in a lot of trouble from a leadership perspective.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Tue, Jul 5, 2011 - 9:48pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

"Bad News, Mr. President"

Futures Movers Archives | Email alerts

July 5, 2011, 3:17 p.m. EDT

Oil futures close at a three-week high

Barclays lifts 2012 target, forecasts further global-demand strength

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Tue, Jul 5, 2011 - 9:56pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Bad News Mr. president (con't.)

By mpicache[at]marketwatch[dot]com (Myra P. Saefong) and vharrison[at]marketwatch[dot]com (Virginia Harrison), MarketWatch

SAN FRANCISCO (MarketWatch) — Crude-oil futures climbed Tuesday to mark their highest closing level in three weeks after a brokerage raised its oil-price targets for next year and forecast continued strong growth in global demand.

Optimism about the U.S. economy and the potential for tighter domestic oil regulations also added support to oil.

Crude for August delivery /quotes/zigman/2075824 CL1Q +0.21% rose $1.95, or 2.1%, to close at $96.89 a barrel on the New York Mercantile Exchange after tapping a high of $97.48. Prices marked their highest closing level since June 14.

For 2012, Barclays Capital raised its forecast for Brent crude by $10, to $115 a barrel, and its Nymex forecast by $4, to $110.

Barclays said its 2012 supply-and-demand forecasts “show a continuation of robust emerging-market demand,” with global oil demand expected to grow by 1.38 million barrels a day and non-OECD demand rising by 1.57 million barrels a day.

The main sources of demand growth in 2012 are expected to be China, India, Saudi Arabia and Brazil, Barclays said in a research note Tuesday.

“The price forecast basically includes potential supply interruptions as a risk premium,” said James Williams, an energy economist at WTRG Economics.

The oil market has only 3.5 million barrels a day of spare capacity globally, with most of it in Saudi Arabia, according to Williams. So “the market worries about the spare capacity being that low, should there be another supply interruption, especially in the Middle East,” he said.

And right now, “you can’t be certain in any country that supply won’t be interrupted,” he said.

Barclays also trimmed $6 from its 2011 WTI estimate, to $100 a barrel, “but this is just largely an admission, that the market had already priced in, that they had overestimated this year,” said Matt Parry, chief economist at KBC Energy Economics.

Demand prospects

Potential “oil-demand speed bumps” in the second half of the year have been eliminated, said Dan Morrison, managing director and senior exploration-and-production analyst at Global Hunter Securities.

“The Greek debt crisis appears to continue to move slowly toward a default-free resolution and modestly positive economic news points toward continued modest economic growth,” he said.

“The market is also looking toward seasonal peak demand in January and has concerns about the availability of spare capacity to meet it,” he said.

Meanwhile, the oil market continues to digest last week’s strongly positive U.S. PMI number and the “real surprise” of how quickly the market has shrugged off the International Energy Agency stockpile release, Parry said.

Earlier in Tuesday’s trading, oil dipped to as low as $94.34 a barrel. Prices have lost more than 5% in the past month, on factors including the IEA’s decision to release 60 million barrels to offset Libyan supply shortages.

On the domestic side, the Department of Energy said last week that it had received more than 90 bids for the 30.2 million barrels it’s scheduled to release under the IEA plan. The department expects the contract process to be completed by July 11.

“In the coming week, we are monitoring the progress of IEA stock release. There are some concerns there is a lack of coordination and transparency outside the U.S., and the 60 million barrels that the IEA decided to release may not be absorbed by the market, due to the weak recovery,” said Chung Yang, oil analyst with Philip Futures in Singapore.

“There are concerns the [release] may create an oversupply situation in the market,” he said.

Oil prices may also finding support in part because of “fears of tighter regulations in the U.S.” inspired by a pipeline leak into the Yellowstone River, said Phil Flynn, energy analyst at PFG Best, in a note.

Exxon Mobil Corp. /quotes/zigman/203975/quotes/nls/xom XOM +0.01% said the pipeline that runs under the river near Billings, Mont., dumped up to 1,000 barrels of oil before the leak was discovered. Read more about the oil spill.

“Once again an avoidable oil disaster could provide some political cover for the Obama administration that has floundered and failed,” said Flynn. The administration “could try to use this incident to justify the policy of thwarting domestic oil production,” he said.

Dollar dance

Oil prices tend to trade inversely to the dollar index /quotes/zigman/1652083 DXY -0.08% , which measures the greenback against six major currencies, but a general optimism about the U.S. economy lifted both Tuesday, said Michael Lynch, president of Strategic Energy & Economic Research.

“Fears of a double-dip recession seem to be fading,” he added.

The dollar index traded at 74.670, up 0.6% from Monday when U.S. markets were closed for Independence Day. Read more about currencies action.

Rounding out action in the energy markets Tuesday, August heating oil /quotes/zigman/2075593 HO1Q +0.12% added 3 cents to end at $2.96 a gallon and August gasoline /quotes/zigman/2075608 RB1Q -0.02% closed at $2.98 a gallon, up less than a penny.

August natural gas /quotes/zigman/2049440 NG11Q -0.16% closed up 5 cents at $4.36 per million British thermal units. Forecasts for warmer weather in much of the U.S. buoyed demand prospects for the commodity as a heating fuel.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Wed, Jul 6, 2011 - 9:12pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

JPM Sucks, Plain and Simple

Bidders For 30 Million Barrels Of Strategic Petroleum Reserve Disclosed; JP Morgan Requests $158 Million In Crude Submitted by Tyler Durden on 07/06/2011 18:46 -0400

As was previously disclosed, as part of the SPR's auctioning off of 30 million barrels of light sweet crude, bids for a total of 30.64 million barrels of oil at an average bid of $107.20/barrell were submitted by various parties. The only thing unknown was the identity of the parties, which however has now been all cleared up following the release of the complete bid list from the DOE. Probably the most notable (if not completely expected) discovery is that JPM, that FDIC-insured depositor bank, has requested 1.5 million barrels at a price of $105.33 for a total of $158 million. We wonder just what JPM plans on doing with this crude, which as predicted, will be transported by vessel, and offloaded at such time as JPM sees fit, probably well after the product is trading at a substantial premium to the purchase price. Other potential buyers include Valero, Vitol, Shell, Conoco, Plains and various other E&P companies. Ironically, JPM wants more crude than Sunoco and Tesoro: so next time one tries to gas up their car, we suggest looking for the JP Morgan gas station. But by far the most important news is that 80% of the bid are based on a vessel-based distribution, meaning it will be weeks if not months before the SPR disposed crude finally makes it into circulation, if at all, and has an actual supply-side benefit. Complete bid list is attached.

SPR Bidders

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Thu, Jul 7, 2011 - 11:31am
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Criminality or Political Stupidity?

The more I think about it, and as more time passes by and oil just wants to creep or jump upwards, I can't help but think that the U.S. SPR and IEA 6o million barrel crude oil release was either politically motivated, plain stupidity and at this point possibly criminal. All three with a heavy emphasis on criminal at this point is what I now believe.

That release was a pay off to someone for whatever reason or just a weak and obvious political excused to enrich some bank under the auspices of helping people with their gas prices during the summer. I don't know about any of you, but $.25-.50 isn't going to break me one way or another. Most people are so oblivious to whats going on that they mostly cheer a perception of cheaper gas as equating to hopefully a better economic result(jobs) and they just go along and see gas under $4 mostly. That's all that's important at this point, that psychological $4/gal. threshhold. I suspect when we see gas prices averaging close to $4 again we will see some other way that they will attack the crude price. Anything over $95 a barrel mostly undercuts any positive QE that was thrown into the system or that continues to do so now today stealthily.

We know now that JPM (suprise, suprise ) was behind most of that crude sale as per ZeroHedge's article last night.

At what point does this become an obvious criminal enterprise where our own U.S. Atty. General or Justice Dept. or SEC or any other 3-lettered federal agency get involved to put a stop to it?

Probably never and that's the sickening part. They all are in on it and support one another at this point. If a citizen or company (that was not in their Fed./EE loop) tried to do the same thing the IEA/U.S. just did they would be arrested and charged with some type of crime and we all know it.

Look at oil today and it will probably get slammed backwards at some point soon, possibly even as I write this post.

Criminal things are happening on a grand scale (at taxpayer expense) and TPTB obviously are feeling invincible. When our whole U.S. Judicial System and Financial Regulatory Agencies all turn a blind eye towards the obvious then I call that criminal. Just because they control the game and make the rules doesn't make it right....unless they rewrite the Rules and Standards that have served us for decades as a supposed free market economy.

Someone is going to have to come up with a new name for our new economy going forward.

Matrix economy works for me, it's all MOPE anyway.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Thu, Jul 7, 2011 - 7:32pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Rigged Crude Algo Trading

No, It's Not The Nat Gas "Fractal" Algo: Nanex Discloses The Very Ominous Implications Of Today's Berserk Crude Algo Submitted by Tyler Durden on 07/07/2011 17:03 -0400

After we reported about the aberrant Crude Oil Futures algo earlier, we asked out friends at Nanex to take a closer look. What they discovered is something far more disturbing than merely another iteration of the confused "fractal" algo seen previously trading Natural Gas.

In essence, the odd trading pattern in CL was not isolated, but worked in tandem and in seemingly perfect arbitrage with events in the key crude-related ETFs: USO, UCO and SCO.

In Nanex' words:

What appears to be a massive arbitrage algorithm involving the NYMEX Crude Oil futures (CL) and ETF symbols USO, UCO, and SCO, began executing at 13:35:43.850 and ended about 5 seconds later. The August futures contract (CL Q11) cleared out both sides of the depth of book 4 times.

At first sight, the oscillations in the CL future appear somewhat similar to the oscillations from another algorithm involvingnatural gas on June 8, 2011. However, on closer inspection, this is something entirely different.

And for all those who are convinced that it was not merely HFT that caused the May 6 flash crash, but a tandem sell-off between futures and correlated ETFs, here is the sobering conclusion as to why absolutely nothing has changed since the Flash Crash.

This is an event that regulators need to spend time taking apart and analyzing in detail. It will be well worth it, because there are similarities with algorithms that cause disturbances in the equity market via arbitrage between the S&P future and the equity ETFs SPY, IWM, QQQ, etc (one of those disturbances resulted in the "flash crash"). Someone has a distinct speed advantage and is taking full advantage of it.

In other words, the very same actors are still engaging in all the same manipulative activities that caused the biggest (if very short lived) market drop in history are still here, however they are now trading other products, which as is well-known the administration has a keen interest in seeing plunge in price.

For the conspiracy theorists out there, recall the events surrounding the market crash and the exigency to pass circumstantial legislation that both prevented an audit of the Fed, and to encourage Europe to bail out Greece for the first time. In other words, keeping with the conspiratorial bent, if the SEC does not pursue the perpetrator of this trading pattern, who very well may have been the same one to crash the stock market back in May of 2010, at least we will know why. Oh, and don't be surprised to see the equity flash crash transposed to other politically convenient products when so required (preferably before key political events that require the consumer to suddenly feel wealthy). Such as crude... and of course precious metals (which incidentally reminds us: has anyone found who caused that massive crash in silver on May 1 which marked the top in the silver market? We didn't think so).

Some visual evidence courtesy of Nanex:

Zoom in, Price Only:

Symbol UCO, PROSHARES ULTRA DJ UBS CRUDE

Symbol USO, UNITED STATES OIL FUND LP:

Symbol SCO, PROSHARES ULTRA SHORT DJ UBS

CL.Q11 - AUGUST 2011 CRUDE OIL

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Fri, Jul 8, 2011 - 12:58pm
Fri, Jul 8, 2011 - 1:01pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Oil at 11:00 a.m.

At approx. 11:00 a.m. as usual a market trend stopped for reversed. Today it was oil's skid that was halted and the leveling off of steep early market losses across the board.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Thu, Jul 14, 2011 - 1:11pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Reason for Oil Plummet?

Besides the EE and The WH trying to keep a lid on $100 oil?

That is one steady and deep attack. I haven't read anything yet but a margin hike or IEA/SPR release must be imminent or lined up for tomorrow.

Get ready for more EE/WH desperation at any cost. The cost is our SPR (taxpayer funded) getting drained a bit for no real free market reasons. If it's a new oil QE2 we'll find out soon enough as the Saudi's will let us all know right after it happens.

Something is up besides the MOPE their tossing out there.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Fri, Jul 15, 2011 - 5:48am
33 and a turd
Offline
-
Luxembourg
Joined: Jun 14, 2011
213
1283

another IEA Oil release

CNBC just reported that Germany and Italy are lobbying against a second oil release.

A nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people. John F. Kennedy
Sun, Jul 17, 2011 - 4:04pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

Proof IEA/SPR Release For Profit/Not Gas Prices

Winners and Losers Submitted by Bruce Krasting on 07/17/2011 12:31 -0400




I loved this story. Some poor bastard over at Chevron accidentally released the company’s crude/distillate trading results for the year. An effort was made by the company to squash the information. Dow-Jones said, "the hell with that" and went public with the info.

Not surprisingly, Chevron is doing just fine in its oil trading business. They show year to date gains of a very tidy 360 million. I find it amusing that they are making such a bundle. The President said a month or so ago that he was going after the speculators who he thinks are driving up the cost of energy. Look no further Mr. President. It’s the oil companies that are driving up prices and making a bundle in the process, not some ‘locals” who trade crude futures in Chicago.

Speaking of making a bundle in oil trading it’s worth taking another look at the SPR oil sales that Obama ordered to “reduce the price at the pump”. This chart looks at LLS (Louisiana Light Sweet) for the past month.


Note that as of Friday’s close of $116.49 we are now above the level for pricing before the SPR sales (June 22). Therefore one would have to conclude that nothing of lasting value was accomplished by the effort to manipulate markets.

The government sold off 30 million barrels to the LLS market at the very favorable price of 107.20. Comparing that to Friday’s close gets a loss to the SPR of $280mm. Keep in mind that it only took a few weeks to get these gains, so the folks who played in the deal made a bundle.

Given that sweet crude is now above where it was on June 22 we have to anticipate that the deep thinkers in D.C. may well try another round of oil sales. If they do, it will have the same results. Big Oil will make a bundle, gas prices will not go down at the pump and the ‘owners’ of the SPR (all Americans) will get ripped off again.

There is the possibility that the bright folks who dream up these silly plans will come to their senses. They might just do the ‘right thing’ and preserve the SPR for what it was supposed to be for in the first place; an emergency. I doubt that will be the case. Gas prices are going to be going up in the next few weeks. Given that the ‘Deciders’ have absolutely no other options (monetary and fiscal policy is now dead in the water) they may well take the step to manipulate energy prices again. It won’t work the next time either.

There is no way to determine how much money was made by the principals who bought the SPR oil. We know what price they paid and we know how much oil each company got. We don’t know when/if they sold it. On the assumption that the inventory profits were all retained, the paper gains would look like this:


What’s $280 million amongst ‘friends’? By they way, they don’t pay taxes on this crap either.

At some point someone in D.C. is going to defend the decision to sell crude reserves from the SPR. I can’t wait. This effort to manipulate the economy produced no meaningful results, other than to make some fat cats fatter.

ZEROHEDGE.COM

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

Wed, Jul 20, 2011 - 10:44am
33 and a turd
Offline
-
Luxembourg
Joined: Jun 14, 2011
213
1283

Another oil release

CNBC reports that the IEA is ready to release more oil into the market.

https://www.forexlive.com/blog/2011/07/20/iea-redy-to-spit-into-the-wind-again/

A nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people. John F. Kennedy
Wed, Jul 20, 2011 - 2:58pm
¤
Offline
-
Black Hole Sun
XX
Joined: Jun 14, 2011
18692
92317

A huge attack today

How obvious was that attack today starting at 9:00 a.m.? Two large stab wounds today and they prevented oil from easily going to $100

I wonder if it could be calculated how many petro dollars were steered away from investore today that normally would have been profits if the EE didn't steeer the market so heavily? And thats not criminal?

Its getting crazy.

An epic lack of foresight, accuracy and rationale... https://www.tfmetalsreport.com/comment/170246#comment-170246

randomness