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Crude Oil is FED up

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  • Crude Oil is FED up

    Phil Flynn is the pit trader at the NYMEX who reports on the oil trade for CNBC and Fox Business (like Santelli does for T-Bonds).
    This whole thing with the Fed and Banana Ben is becoming a joke. Just like our country is becoming a joke with "Bubbles" Ben being named "Man of the Year" by Time magazine.
    It's not being named "Man of the Year" that's so bad, as Don pointed out, but the pathetic fawning over this bankster stooge.

    (*Highlites are mine)

    The Energy Report

    by Phil Flynn

    Oil Is Fed UP

    12/16/2009
    Oil is FED Up.
    Oil finally got up off the mat, ignored a soaring dollar and it got lifted in a bout of demand optimism off a better than expected industrial production number. Ok it helped that the market was oversold and the session was less than exciting, yet the rally still seems to suggest that the market may still have some life or maybe just some short covering ahead of the Fed.
    And why should it not? The price of oil is a Fed inspired creation with a recipe of zero interest rates and printed money and the type of demand growth that can only be inspired by cheap and easy money. Yesterday the market was worried by a larger jump in wholesale inflation when the PPI came out triple expectations, rising 1.8%. That led some in the oil patch to wonder whether the Fed is too complacent and this is the precipice of a major inflationary cycle. We saw note yield hit the highest level since August on those concerns and the Fed statement may be the most important single factor that drives oil prices around today. But more importantly it may perhaps give us a window into the next big move when it comes to energy prices.
    Once oil closed back below $75 a barrel I told you we would be in a trading range that eventually would bring us down to $65. The Fed may overshadow even today’s inventory report that will be heavily influenced by the cold. The API reported a big drop in distillate fuels as supply fell 2.604 million barrels as those heaters are starting to go on. Crude stocks actually increased by 924, 00 barrels as the AOI reported a surprising drop in crude runs. Gasoline stocks increased by 2.074 million barrels. With without much overhead short-term resistance the market decided to take the mixed report as slightly bullish overnight or perhaps it is just ignoring it and moving higher technically.
    Now despite current strength oil will have a hard time rallying too hard as it is clear that we will see more oil production out of OPEC. As OPEC meets it will not matter whether or not they change their quota, with their compliance already slipping to a new yearly low, we would expect to see more OPEC oil come onto the market.


    Natural Gas Breakout! It looks like natural gas in January will target 590 to 600! Stay warm as you put up that tree and bake those cookies!
    Attention loyal Energy Report Readers. You will have to sign up to get trading recommendations This will allow us to put on more complex trades and in the near future we have plans to deliver the trades in a more timely manner. While we are going through this transition I ask that you email me or call me for trade updates and to open your account. We will shortly have a way for you to get logged on for the trades. Just call me at 800-935-6487 or email me at: pflynn@pfgbest.com.
    It Is Fed day! Get your Fed shoes out and turn on the only place to get the Fed decision and that is the Fox Business Network where you can see me every day!

    http://www.pfgbest.com/services/rese...rgy-report.asp

  • #2
    Re: Crude Oil is FED up

    TIME Managing Editor Richard Stengel called the Federal Reserve “the most powerful, least understood government force shaping our lives” as he revealed his magazine’s choice live on TODAY Wednesday morning.

    “He was the great scholar of the Depression who saw another depression coming, and did everything he could to stop it,” Stengel said of Bernanke. “He's a controversial figure. He’s a Republican appointed by a Democratic president. It’s a really interesting combination of factors.”

    Yes it is indeed an "interesting combination of factors". It shows forth the bi-partisan nature of the fraud and criminality of these low-lifes.

    So Bernanke "saw another depression coming"? Unless I've suffered the complete loss of my memory Bernanke saw only a contained mortgage problem and ever brighter rays of Fed induced sunshine. From 2001 to 2004 this rat-bastard blew harder on the bubble machine than did "The Maestro".

    Saw it coming my ass! Like someone else said on another thread, "I can't take much more of this crap".:mad:

    Comment


    • #3
      Re: Crude Oil is FED up

      Originally posted by Raz View Post
      TIME Managing Editor Richard Stengel called the Federal Reserve “the most powerful, least understood government force shaping our lives” as he revealed his magazine’s choice live on TODAY Wednesday morning.
      This must be a joke. I can't believe Time doesn't know Federal Reserve is not a part of government but instead a private entity?

      Comment


      • #4
        Re: Crude Oil is FED up

        Originally posted by friendly_jacek View Post
        This must be a joke. I can't believe Time doesn't know Federal Reserve is not a part of government but instead a private entity?
        Maybe Time understands more than you think (but I doubt it) The FED may not be the elected government who you voted for. But they are still the governers.

        Comment


        • #5
          Re: Crude Oil is FED up

          Originally posted by llanlad2 View Post
          Maybe Time understands more than you think (but I doubt it) The FED may not be the elected government who you voted for. But they are still the governers.
          I am sorry must be dense- what does what you wrote mean exactly?

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          • #6
            Re: Crude Oil is FED up

            My translation:

            Maybe TIME understands where the real power lies, though probably just an accident they called it a government force. The FED was not elected but they do more towards shaping/governing our country than most elected officials.

            Comment


            • #7
              Re: Crude Oil is FED up

              Originally posted by flintlock View Post
              My translation:

              Maybe TIME understands where the real power lies, though probably just an accident they called it a government force. The FED was not elected but they do more towards shaping/governing our country than most elected officials.

              I can't help but feel that this is perhaps simply a reflection of an underlying and widespread hope and desire that someone can restore things to the familiar, comfortable and profitable [for some] glory days of the FIRE economy...Time's candidate is Bernanke.

              The creation and glorification of celebrity is an art form in the USA. All Time's editors are saying is that the tweed-jacketed, professorial Ben Bernanke is, in their opinion, a "celebrity" that suits the mood of these uncertain times...
              Last edited by GRG55; 12-16-09, 10:30 PM.

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