And there was much rejoicing in the land.... Gas Prices

[Strychnine]

Btw Schlumberger was just hit with the largest criminal fine ever imposed for a US sanctions violation. Fined $232.7 million and ordered to forfeit $77.6 million in illegally obtained profits.

For

conspiring to violate the International Emergency Economic Powers Act (IEEPA) by "willfully facilitating illegal transactions and engaging in trade with Iran and Sudan."

Assistant Attorney General for National Security John P. Carlin said, "Over a period of years, Schlumberger Oilfield Holdings Ltd. conducted business with Iran and Sudan from the United States and took steps to disguise those business dealings, thereby willfully violating the U.S. economic sanctions against those regimes."

[Sean88gt]

I'm sure that won't be made up when they stick it to us again.

[Rick Modena]

Imagine if Carless Chris resurfaced and started selling used cars for $5000 each despite the fact that Whiteboy could get $10K each for them. Now let's pretend the cars are exactly the same, and both Chris and Whiteboy are paying $7500 for the cars. Chris should stop selling cars altogether or raise his price, but he continues to sell them for $5K despite a $7500 cost. Whiteboy is stuck with a bunch of cars that no one wants. He doesn't want to sell them for $5K because he loses money. In the oil situation, Saudi is Carless Chris flooding the market with cheap oil despite losing money.

ahahahahahahahaah!!!

[Broncojohnny]

I made a bet with my boss last week taking WTI to hit $55 before $35. We'll see.

I think this is possible. Since the Fed meeting we have seen the speculators run the price back up. Look how much it ran up today despite another big inventory build.

I think if the employment report is strong next week we see a big sell off in everything. I think we'll probably go right back up on the slightest whiff of good earnings since speculators will use any excuse to buy. I'm just wondering if we will see a sell off in anticipation of the April Fed meeting. I look for each meeting to be a market churn, with each sell off getting worse until they raise rates.

[Strychnine]

Yes and no? We've got an overabundance of capacity on the drilling side, but not enough capacity on the refining side.

Dont' forget that global demand is not growing as strongly as predicted.

[Strychnine]

Saudi bombed Yemen overnight, Brent jumped 4% this morning and WTI is back above $50.

Thursday following the commencement of military operations by Saudi Arabia and its Gulf Arab allies in Yemen, which is situated on a strategically important global oil chokepoint between the Arab Gulf and Europe. In order to export oil to Europe, Arab producers have to send the crude past Yemen's coastlines via the Gulf of Aden to get to the Suez Canal.

[Sean88gt]

I bet it was a speculator.

[Strychnine]

US rig count -21 this week.

Total US rig count at 1048

[Broncojohnny]

Another 4.8M barrels in the tanks

[YALE]

Time to add to the SPR's capacity.

[Strychnine]

[Sean88gt]

Supply instability? How about storage instability? I don't supply has ever really been an issue.

[Strychnine]

US rig count -20 this week.

Total US rig count at 1028

[Denny]

US rig count -20 this week.

Total US rig count at 1028

I'm going to hit that sub-1K by the end of April.

[Strychnine]

I'm going to hit that sub-1K by the end of April.

Yup, but it's tapering off.