Crude Oil - Was that it?

[farming101]

Wondering if Feb 11 will mark the low for a while or maybe for a very long time.

A close below 26.60H would say no.

[TOM4CWB]

Deflate oil... beat big oil into the ground... they deserve it and will bounce back anyway.

Besides Putin/Saudi's///Iran... and even Canada got away too easy on the last 09 bounce.
Time for us to pay up a little... cheap oil makes the world a better place.

I see the US Supreme Court put Obama's Coal jerk game on hold for utilities... claiming irreparable harm to US utilities and States producing coal...

Oil Supply is unlikely to balance consumption till we get to $22...???
Inflate away,

The logic goes...

If a bubble develops... inflate the currency... and the bubble will disappear.

As long as the money supply increases... it can work.

Which is why every central bank now... WANTS INFLATION... to reduce debt to GDP ratio...

MONEY SUPPLY 1995 was 40T globally

2015 now $225T usd.

When interest rates go negative... the who gets the currency? Central banks??

Debt reduction through currency reevaluation... if no interest charged... then it works.

[BFW]

bought gas (dyed) for .48/litre recently. Wonder if they will put a Hellcat engine in a dodge pickup?

[cottonpicken]

I'm getting worried about a no bid on Canadian oil

[Rareearth]

I think that's the only way, everyone is in the same sinking boat.
From Tom
"When interest rates go negative... the who gets the currency? Central banks??

Debt reduction through currency reevaluation... if no interest charged... then it works."

Everyone looks back from where we are and knows where we are today. The question is how does all this look or work 10 years from now?

I think Tom has it, once all countries devalue, more or less the same as they have been able to do traditionally. Once the bottom is hit and every country stabilizes, maybe gold standard or other global currency? Equilibrium at the bottom has to be found between manufacturing economies, resource economies, service economies.

Who knows what countries are the winners or losers, or what investments are the winners or losers? Traditionally hate to say it but the rebalancing has always been done through war.

[farmaholic]

As ignorant as this may sound... it's good to know it can happen to other commodities other than Ag commodities.

Is the fall due to true demand reduction or oversupply. Is there really "that" much less fuel being used?

I looked at a chart:
Dec/98-16.28
Dec/01-26.22
Feb/09-43.66
Feb/16-26.29

farming101, could you post a WTI line chart. Wow did the wheels ever fall off this time. Testing a 15 year low.

Just think of all the money that can be made on the way up... ;-)

[BTO_farmalll]

No,

The Markets Job is To Inflict Thee Most Amount of Pain, To Thee Most Amount of People, Fer Thee Longest Amount of Time - We Just Gettin Started


#BustWeMust

[farming101]

Crude Monthly Nearest

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March Crude Feb 11 5 minute

[URL=http://photobucket.com/]/URL]

[helmsdale]

Bloomberg alert says wti @ 26.14... cushing a few months from physically running out of room and no one willing to take their foot off the trottle the supply side looks terrible. Ab is supposed to be one of the highest cost producers and yet november oil production was up over 7% yoy

All of this with a "near normal economy" stateside. Yellens words not mine... when the demand side goes base jumping in the near future, a no bid on wcs looks entirely possible. Wow. So much for peak oil!

[farmaholic]

....production up 7% on slow demand. Does that model sound familiar. Over produce a cheap commodity into profitability.

[tstep]

A guy I know was telling me about a friend in Calgary saying that the talk is 19.00 a barrel by summer. Time will tell

[helmsdale]

A guy I know was telling me about a friend in Calgary saying that the talk is 19.00 a barrel by summer. Time will tell

Situation in calgary is gonna be shades of the early 80s all over again... doesnt matter who i talk to in my travels, shit is unravelling at an astonishing rate!

[hobbyfrmr]

Along the same lines as farmaholic, I have seen a lot of absurdly low grain prices in my time. I am having mixed emotions with sympathizing. These low oil prices are going to hurt some really good people, but I spent many waking nights trying to figure out where the extra $ 15,000 is going to appear for fuel, fert , spray while mainstresm society was buying 42 inch flat screen TVs
Society cherishes oil , it will recover.

[helmsdale]

Many might already have this site, and i dont know if sk/mb do something similar, but you can track the shitshow month to month in alberta at:

http://economicdashboard.albertacanada.com

All the stats are generally listed as yoy.

Its been UGLY since about feb/mar of last year. So going forward if we see further yoy declines, it will be stacked on top of already significant declines.

[fjlip]

http://seekingalpha.com/article/3893726-crude-oil-bloodbath-cushing