Black Gold Crashing

[osoab]

Down 6.75% currently. Running about 68.80 spot.

Saudi's are putting a screw on shale oil.


http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)

Oil Prices Collapse After OPEC Keeps Oil Production Unchanged - Live Conference Feed (http://www.zerohedge.com/news/2014-11-27/oil-prices-collapse-after-opec-keeps-oil-production-unchanged)Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 11/27/2014 - 09:58 http://www.zerohedge.com/sites/default/files/imagecache/fp_thumb/images/user3303/imageroot/20141127_wti.jpg (http://www.zerohedge.com/news/2014-11-27/oil-prices-collapse-after-opec-keeps-oil-production-unchanged)But, but, but... all the clever talking heads said they wil have to cut...
*OPEC KEEPS OIL PRODUCTION TARGET UNCHANGED AT 30M B/D: DELEGATE
WTI ($70 handle) and Brent Crude (under $75 for first time sicne Sept 2010) are collapsing... as will US Shale oil company stocks and bonds (and thus all of high yield credit) tomorrow. The Saudis are "very happy" with the decision, Venzuela 'stormed out, red faced, furious.' Commentary from various OPEC members appears focused on the need for non-OPEC (cough US Shale cough) nations to "share the burden" and cut production (just as the Saudis (http://www.zerohedge.com/news/2014-11-26/us-secret-deal-saudis-backfires-after-oil-minister-says-us-should-cut-first)

[osoab]

wilver is taking it on the chin.

palladium just keeps steady.

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)

19 US Shale Areas That Are Suddenly Endangered, "The Shale Revolution Doesn't Work At $80" (http://www.zerohedge.com/news/2014-11-26/19-us-shale-areas-are-suddenly-endangered-shale-revolution-doesnt-work-80)Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 11/26/2014 - 15:41 http://www.zerohedge.com/sites/default/files/imagecache/fp_thumb/images/user3303/imageroot/20141125_shale.jpg (http://www.zerohedge.com/news/2014-11-26/19-us-shale-areas-are-suddenly-endangered-shale-revolution-doesnt-work-80)“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke... The shale revolution doesn’t work at $80, period.”



http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/11/20141125_shale.jpg

[Silver Rocket Bitches!]

Phoo! We're looking at a low not seen since 2009. And this is when oil hit $42 and started bouncing back. We could see even lower lows!

http://finviz.com/futures_charts.ashx?t=CL&p=w1

http://www.investing.com/commodities/crude-oil-streaming-chart

[old steel]

Tar sands oil requires a price of 90-100 per barrel to stay in the black, at least for new investment.

Also, i've heard through the grapevine that a lot of shale oil companies are leveraged with major exposure to derivatives, sounds like problems down the road.

The energy sector has been the one bright spot in the economy for growth. Talking to my dealer this afternoon and he says this price drop has a long way to go, not just in price but in the length of time it will take to reverse the downward trend. Say goodbye to tens, perhaps hundreds of thousands of good paying jobs.

[ShortJohnSilver]

Tar sands oil requires a price of 90-100 per barrel to stay in the black, at least for new investment.

Also, i've heard through the grapevine that a lot of shale oil companies are leveraged with major exposure to derivatives, sounds like problems down the road.

The energy sector has been the one bright spot in the economy for growth. Talking to my dealer this afternoon and he says this price drop has a long way to go, not just in price but in the length of time it will take to reverse the downward trend. Say goodbye to tens, perhaps hundreds of thousands of good paying jobs.

The question is, will lower energy costs for everyone else, translate to more jobs in other sectors? After all, only a portion of the higher price per barrel, stayed in the USA.

Second, we don't really know what the break-even is - however, it seems to me, that an orchestrated takedown means the small guys take it on the chin, investors get fleeced due to the manipulation ... and the big guys walk in and buy it for pennies on the dollar. After THAT, the price will increase again.

[old steel]

The question is, will lower energy costs for everyone else, translate to more jobs in other sectors? After all, only a portion of the higher price per barrel, stayed in the USA.

Second, we don't really know what the break-even is - however, it seems to me, that an orchestrated takedown means the small guys take it on the chin, investors get fleeced due to the manipulation ... and the big guys walk in and buy it for pennies on the dollar. After THAT, the price will increase again.

I don't know but the Rockefellers sold out of oil a couple months ago and now look what's happened.

What do they know that we don't?

http://online.wsj.com/articles/the-rockefellers-reject-oil-1412980960

Didn't oil take a dive preceeding with the financial crisis in 2008?

[PatColo]

Didn't oil take a dive preceeding with the financial crisis in 2008?


yep, from just shy of 150, to 33ish in about 6 months time (aug-08 to about dec-jan-09). This (PTB insider sourced) "prediction" put Lindsey Williams on the map... but I'm not aware of any correct predictions he's made since... just explanations for why his recent predictions haven't come to pass.

VEastwood posted this LW interview Aug 2012:

Lindsey Williams, The Energy Non Crisis That Others Don't Let Me Talk About
https://www.youtube.com/watch?v=BxoTkr92JM8



Anyways I suspect this current plunge is manipulated, motive involving starving Russia...

[Twisted Titan]

That is why russia and china are buying gold hand over fist.

[PatColo]

That is why russia and china are buying gold hand over fist.

video @ link:

Why is Putin buying gold? (http://www.cnbc.com/id/102196612)
2014 11 19
By: Everett Rosenfeld | cnbc.com (http://www.cnbc.com/id/102196612)


Russian President Vladimir Putin is developing a taste for gold.

With all of its income from selling oil, Russia is diversifying its reserves by buying massive amounts of gold, said William Rhind, CEO of the World Gold Trust Services.

Of all the central banks that make their reserve actions public, Russia has been the "largest, most active" gold accumulator, he explained. Still, Rhind said, the "elephant in the room" is how much gold China is buying, as Beijing does not publish these figures.

A recent report from the World Gold Council showed that many central banks, including Russia’s, have beefed up their gold reserves. This investment, the report suggested, was "driven by a number of factors including a continued diversification away from the U.S. dollar and the backdrop of ongoing geopolitical tensions."

Still, Rhind explained that the move towards gold buying does not represent a new trend for global currencies.

"I don’t think it’s moving to a de facto gold standard, it’s just simply about diversification," he said. "In many ways they view it as being not too dissimilar from why anybody would own gold."

More than half of all the gold added to central bank reserve assets in the third quarter was purchased by Russia (55 of about 96 metric tons), the World Gold Council report said.

In total, Russia’s central bank has bought about 150 metric tons of gold so far this year, Bank of Russia Chairwoman Elvira Nabiullinasaid on Tuesday.


Source: cnbc.com (http://www.cnbc.com/id/102196612)

[mick silver]

didn't we see they lows back in 2007 before the market crash , huh ... A renewed plunge in oil prices is a worrying sign of weakness in the global economy that could shake governments dependent on oil revenues. Yet it is also a bonus for consumers as prices fall at the pump, giving individuals more spending money and lowering costs for many businesses.
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The latest slide was triggered by OPEC's decision this week to leave its production target at 30 million barrels a day. Member nations of the cartel are worried they'll lose market share if they lower production.
Partly because of the shale oil boom in the U.S., the world is awash in oil but demand from major economies is weak — so prices are falling.
Brent crude, an international benchmark, was at $72.50 a barrel on Friday, down nearly 30 percent in the past three months and at its lowest in four years. U.S. crude oil slid 6.2 percent to near $69 a barrel on Friday and is down 27 percent over three months.
Overall, the slide will come as a boon for consumers in oil-importing regions like Asia and Europe. But there are also some possible negatives.
WESTERN EUROPE
Many of Europe's economies are net importers of oil, so lower prices are likely to give a welcome, if small, boost to growth. Cheaper energy reduces costs for industry and puts more money in consumers' pockets. That will be particularly useful in the 18-nation eurozone, where unemployment is high.
In Germany, the price at the pump for Super E10 fuel has fallen from 1.53 euros per liter ($7.16 per gallon) at the start of September to 1.42 euros per liter ($6.69 per gallon) this week, according to the ADAC motoring association.
View gallery
http://l2.yimg.com/bt/api/res/1.2/3rakDiw9IMHg_i8CeW0ltA--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTI0MDtxPTc1O3c9MzAw/http://media.zenfs.com/en_us/News/ap_webfeeds/ca3929b8c1bdaf2e660f6a70670039f5.jpg
(http://news.yahoo.com/photos/man-puts-gas-car-shell-filling-station-electric-photo-070230057.html)A man puts gas in his car at a Shell filling station with the electric indicator showing a liter of …

Dropping fuel prices also, however, add to one of the eurozone's biggest headaches: low inflation. Weak inflation makes it harder for troubled economies like Greece to reduce debt. It is also a problem for the European Central Bank, which wants to nudge up inflation from just 0.3 percent currently to around 2 percent.
The few European countries that do produce oil — mainly Britain and Norway in the North Sea — face a drop in revenues that could balance out the positives of cheaper fuel.
RUSSIA
Russia gets about 50 percent of its state revenue from oil exports, so the government's concerns are clear. The national economy is already sliding into recession under the impact of Western sanctions and investors are pulling money out.
Officials for the moment are putting on a poker-face — Putin said Friday that "I'm sure the market will become balanced by the middle of next year."
For Russian consumers, the outlook is mixed. Prices at the pump have actually gone up in the past few months, in line with a rise in inflation that has been fueled by the drop in the national currency, the ruble. In local money, 95-octane gasoline costs 35.99 rubles a liter ($2.8 a gallon) in Moscow, up from 35.53 per liter two months ago.
JAPAN
In Japan, which is a net importer of oil, gas at the pump remains relatively high as it takes some time for cheaper crude prices to filter down to consumers. Also, a recent drop in the yen's value will reduce the savings Japan can reap from lower oil prices.
In June, regular gasoline cost $1.40 a liter ($5.29 a gallon) at the Esso filling station in Shimbashi, near the glittering Ginza shopping strip in Tokyo. The price rose to $1.46 a liter ($5.53 a gallon) in July and was $1.44 a liter ($5.44 a gallon) on Friday morning.
Prices are expected to fall but that will complicate the government's efforts to end Japan's deflation.
CHINA, EMERGING ASIAN ECONOMIES
The Chinese government adjusts retail prices in line with the global market. As a result, Beijing has cut prices repeatedly this year. On Friday, highest grade gasoline cost $1.20 a liter ($4.54 a gallon) in the capital, down from $1.35 a liter ($5.11 a gallon) in June. Cheaper fuel would ease financial pressure on manufacturers and small businesses at a time when economic growth has declined steadily over the past two years.
Elsewhere in Asia, the impact is varied. In Indonesia, fuel costs have risen because the government has cut its expensive subsidies, more than offsetting the decline in global oil prices. The higher prices triggered street protests and the latest fall in crude prices may help ease tensions once it flows through to pump prices.
Malaysia is among the few oil-exporting nations in Asia, so the drop is hurting its coffers. But it is also taking advantage of the market drop to cut expensive fuel subsidies.


Budget, Tax & Economy
Politics & Government

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[osoab]

down 10%, wilver down 7%

http://www.finviz.com/fut_image.ashx?cl.png&rev=635527789706406250http://www.finviz.com/fut_image.ashx?si.png&rev=635527789706406250

[gunDriller]

down 10%, wilver down 7%

http://www.finviz.com/fut_image.ashx?cl.png&rev=635527789706406250http://www.finviz.com/fut_image.ashx?si.png&rev=635527789706406250

http://www.finviz.com/

FTW !

always wondered where to go for finan. vis. type stuff.


Speaking of crashing, Wilver premiums have come back down slightly.

100 ounce bars are back to 43 cents premium at Provident.

[JohnQPublic]

This is the first real significant financial shift we have seen in a few years. Something is coming down the pike. I do not know what, but expect things to move to the Newest New Normal (TM). Higher interest rates? PM prices are down, but if some type of panic sets in, it could go up in a panic mode (gold+silver up, Pd+Pt down).

[Horn]

In total, Russia’s central bank has bought about 150 metric tons of gold so far this year, Bank of Russia Chairwoman Elvira Nabiullinasaid on Tuesday.

That puts Putin at #1 seed in the shortside buyers paper position, Thank You Elvira.

There's nothing him and China can't do when putting there heads together in a bucket...

$1 should equal a thousand barrels.

[PatColo]

This is the first real significant financial shift we have seen in a few years. Something is coming down the pike. I do not know what, but expect things to move to the Newest New Normal (TM). Higher interest rates? PM prices are down, but if some type of panic sets in, it could go up in a panic mode (gold+silver up, Pd+Pt down).

I continue to be astounded by Pd's buoyancy relative to the other PM's collapse. Something is definitely "up" with that... maybe some breakthrough Pd knowledge, kept tightly within a small in-the-know cabal, related to Pd and it's hydrogen absorbing quality? (https://startpage.com/do/search?cmd=process_search&cat=web&query=palladium+hydrogen+fusion&language=english&no_sugg=1&ff=&abp=-1)

[ShortJohnSilver]

I continue to be astounded by Pd's buoyancy relative to the other PM's collapse. Something is definitely "up" with that... maybe some breakthrough Pd knowledge, kept tightly within a small in-the-know cabal, related to Pd and it's hydrogen absorbing quality? (https://startpage.com/do/search?cmd=process_search&cat=web&query=palladium+hydrogen+fusion&language=english&no_sugg=1&ff=&abp=-1)

I thought that Russia and maybe China, were big sources of PT and PD? And thus there is a question over how much longer they might allow sales of the raw material into the world market.

[JohnQPublic]

Maybe something in cold fusion?

[osoab]

carnage today. metals held up

[Jerrylynnb]

At 5:00 pm today in the Dallas area, unleaded was $2.18 per gallon (at Costco). Cars were lined up all over filling up at this low price. If this keeps up, it will go below $2/gal and something's got to break.

Over the past couple of years, huge investments have been made further south (towards Corpus Christi) in developing shale - lots of new houses (very expensive), new businesses, almost a frenzy.

But, with regular gas going for less the $2/gal, this shale business will be losing money - they'll have to pause, or maybe, just totally shut down. Massive jobs lost, high incomes gone - the effect will be devastating on the recent heated business activity.

I'm not smart enough to figure out what is going on with this gas war, but, it sure looks precarious. This is not a good time to be out on a limb (in debt, I mean).

[Publico]

It's getting so bad in the oil business Jethro is suing CBS (http://www.desmoinesregister.com/story/news/crime-and-courts/2014/12/10/beverly-hillbillies-max-baer-junior-sues-cbs-jethros-restaurant-chain-tmz/20195375/).

[PatColo]

Exchange Rate History For Converting United States Dollar (USD) to Russian Rouble (RUB) (http://themoneyconverter.com/USD/rub.aspx)
http://themoneyconverter.com/exchange-rate-chart/USD/USD-RUB.gif

[Silver Rocket Bitches!]

The DOW lost 300 pts yesterday, crude is below $58. It doesn't take a genius to see a crash is right around the corner.

[osoab]

into the 53 handle

[mick silver]

gold an silver like the price of oil this morning ... up so far