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B4 The Bell Wednesday August 18


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Looks like the Sadar report could be a set-up

 

Sistani is the one to watch....the wildcard

 

News was right on time

Sadr leaves that shrine, he gets a bullet in the head.

 

Government gas/oil inventories down...oil moving back up again.

 

Oil traders must be puking on their shoes.

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Looks like the Sadar report could be a set-up

 

Sistani is the one to watch....the wildcard

 

News was right on time

Sadr leaves that shrine, he gets a bullet in the head.

 

Government gas/oil inventories down...oil moving back up again.

 

Oil traders must be puking on their shoes.

Demand isn't going away. When the oil companies lower pump prices does that reduce demand? That is why central planning never ever works. When the pump prices do catch up, they'll go over $2 and stay there until demand falls. We have a bunch of power hunger nutballs trying to get re-elected.

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CNN- reporting no truce final offensive against Al Sadr about to get underway!

Freaking media. They will report any bullsheet story handed to them. They can't report anything you can trust. All spin and noise anymore.

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CNN- reporting no truce final offensive against Al Sadr about to get underway!

The Government had to put out the oil inventory numbers, which were going to drive the price of oil higher, so they manufactured a news story about Sadr leaving the shrine, fed it to a newspaper in Africa, got the desired drop in oil price when the story broke, and released the Government oil inventory data within minutes and managed the price of oil with a bogus story to counterbalance the negative inventory data.

 

Either that, or it was all just a coincidence.

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I hear in the background the 10:30 release of the oil figures.? Can someone offer a summary and analysis?

DOE

crude inventories -1.3M brls vs -1.875M brl EXP

Gasoline inventories -2.6M brls vs. -650K brl exp

Distillate inventories +2.1M brls vs. +1.5M brl exp

 

API

crude inventories -1.5M brls

Gasoline inventories -3.5M brls

Distillate inventories +1.6M brls

Thanks Rog. I've never looked at these data, and my handy-dandy 5th Edition "Understanding US Economic Statistics" from your former employer doesn't include any discussion of these.

 

Should I assume that because crude and gasoline inventories are down more than expected, that the market is more vulnerable to a supply shock and upward price adjustments?

 

TIA.

Tough to say. I have no idea how they come to calculate these consenus expectations. Just like most other economic projections everyone claims they have a proprietary model but they all spit out numbers within 1% of each other.

 

Therefore I consider the consensus # useless and by extension missing or beating consensus is useless information.

 

imho, crude anywhere north of $30 is a big problem for the economy. I don't understand all these charts showing crude as a smaller % of gdp, in light of the fact that the US has imported more oil each month for the last 40 years. Perhaps crude consumption is growing at a slightly slower pace than "real" gdp. But haven't these numbers been skewed by years of unusually low oil prices. either way demand is still growing and that hardly argues for a decreasing price in a depleting resource.

 

We are playing crude as the pin the pops the liquidity bubble. The more al pumps free money the more it goes into real commodities. That increases the price of crude and puts a brake on the economy and removes the marginal consumer. More funny money makes the problem accelerate. Less funny money is likely to cause liquidity problems eslewhere before it breaks this cycle.

 

We expected Al to eventually shoot himself in the foot (mortally this time) and it appears that crude is the vehicle of his demise. In retrospect this is obvious. An increase in industrial metals could be contained by manufacturers or distributors. However the wide reach of crude makes containment impossible. How poetic for Al to encourage speculation in all financial assets and then get taken down by this very speculation.

 

Like al, we feel that the rise in crude will be transitory because the slowing in the economy is likely to cause a demand shock that will return crude to the $30-35 area. This however is in direct opposition to the standard bull case: liquidity=economy on fire=generational low prices in crude=record profits=self-sustaining economic boom.

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CNN- reporting no truce final offensive against Al Sadr about to get underway!

The Government had to put out the oil inventory numbers, which were going to drive the price of oil higher, so they manufactured a news story about Sadr leaving the shrine, fed it to a newspaper in Africa, got the desired drop in oil price when the story broke, and released the Government oil inventory data within minutes and managed the price of oil with a bogus story to counterbalance the negative inventory data.

 

Either that, or it was all just a coincidence.

:lol:

 

Plunger wins today's "dry humor award."

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