Apologies for the brevity, on the road once again.
Suffice to say that equity investors shrugged off all concerns on the day and bid stocks higher against a backdrop of daily and weekly losses. The NASDAQ was hardest hit, as traders shunned the high tech sector.
Crude oil has been an interesting story. Since the mid-September attack on the Saudi production facility, oil prices had surged, but now have retreated to prior levels, with WTI crude hovering in the $52/barrel.
Apparently, a two-week shutdown of five percent of global production does not warrant a 15% increase in price, as the perpetrators of the obvious false flag attack had hoped.
Well, at least we can all rest assured that massive fraud and manipulation of markets isn't the sole province of central banks and politicians.
Enjoy the day. Smile through the angst. Go Cardinals!
At the Close, Wednesday, October 9, 2019:
Dow Jones Industrial Average: 26,346.01, +181.97 (+0.70%)
NASDAQ: 7,903.74, +79.96 (+1.02%)
S&P 500: 2,919.40, +26.34 (+0.91%)
NYSE Composite: 12,691.16, +100.25 (+0.80%)
Showing posts with label oil price. Show all posts
Showing posts with label oil price. Show all posts
Thursday, October 10, 2019
Tuesday, September 17, 2019
Oil and Gas Price Hikes Are a Central Banker Scam
Reiterating what was posted here Sunday in the Weekend Wrap, a recent article by Lance Roberts at Real Investment Advice, brings home the bacon in detail, of how the bottom 80% of all US workers, i.e., earners, is carrying a high debt burden that today cannot even cover basic necessities.
The consumer squeeze is in focus after the attacks on a Saudi oilfield and the Abqaiq refinery, which, according to most sources, will affect five percent of global oil supply. Somehow, cutting off five percent of global supply magically raises oil prices 15 percent.
Without anybody knowing exactly who is behind the attacks, many fingers are being pointed toward Iran, naturally, since the Iranians are fighting a proxy war with Saudi Arabia in Yemen. MoonofAlabama.com has a solid account with photos of how the attack might have been staged, who was behind it and future implications.
From a central banker's perspective, the attack and subsequent rise in the global price of oil could not be more opportune on a number of fronts. First, in desperate need of inflation, the bankers get the gift of core inflation in both PPI and CPI. Second, the rise in the price of oil, translated to gas at the pump and some home heating fuel, will show up in the convoluted GDP calculations, just in time for the third quarter and also adding a boost to the fourth if high prices persist.
Further down the road, high input prices and consumer prices for oil and gas should put the brakes on the economy eventually, putting a dent in discretionary spending which could spark a recession in 2020, just in time for the November US elections. Sure, higher prices and profits are good for some, for a while, but eventually, high gas prices act effectively as a tax on all consumers.
If you happen to be a central banker, this sounds great, doesn't it?
There are also political and financial aspects to the story. The attacks come right on the heels of President Trump's firing of John Bolton, the infamous neocon whose penchant for war with Iran was no secret. Conspiracy theorists believe this was long-ago planned, but Bolton's removal as National Security Advisor to the president was the trigger.
There's also the upcoming IPO of Saudi Aramco to consider. Initially, following the attack, the Saudis hinted that they would delay their long-awaited IPO, but now, a day beyond, they say they will forge ahead as planned. At issue is valuation. The Saudis believe the company should be worth $2 trillion at IPO, while the consensus among bankers handling the deal have the figure closer to $1.5 trillion. A lasting boost in the price of oil would naturally add to the valuation, bringing it closer to the level desired by the Saudis, who, after all, have control of the flow of oil, but not the price.
With no culprit positively identified, the entire affair looks to be highly organized - from the accuracy of the missiles and/or drones employed in the attack to the coordinated record trading in the oil futures pits - and the work of people or nations with an agenda. While this may appear far fetched to some, the power of the globalist banking cartel is well-known and could be pulling all the strings behind the scenes. It is not outside the realm of possibility that deep state globalists staged the attacks and price surge. It's also possible the the attacks were completely faked, just to get the price of oil higher.
There has been a glut of global oil supply since the US embarked on its fracking and shale output, becoming the world leader a few years ago. Russia is also pumping like mad, as are most of the OPEC nations. The amount of oil on world markets is so large that even small disruptions should not affect price - which has been falling for over a year - very much, but, in this case, it did.
While there isn't much the general population as a whole can do about higher gas prices outside of mass protests (a likelihood in Europe), there are a few actions the average motorist can take.
Most of all, don't buy into the media hype over gas prices, recession or any other narrative (like climate change) that the media water-carriers throw at you.
At the Close, Monday, September 16, 2019:
Dow Jones Industrial Average: 27,076.82, -142.70 (-0.52%)
NASDAQ: 8,156.40, +2.86 (+0.04%)
S&P 500: 2,994.17, -3.79 (-0.13%)
NYSE Composite: 13,107.98, -16.36 (-0.12%)
The consumer squeeze is in focus after the attacks on a Saudi oilfield and the Abqaiq refinery, which, according to most sources, will affect five percent of global oil supply. Somehow, cutting off five percent of global supply magically raises oil prices 15 percent.
Without anybody knowing exactly who is behind the attacks, many fingers are being pointed toward Iran, naturally, since the Iranians are fighting a proxy war with Saudi Arabia in Yemen. MoonofAlabama.com has a solid account with photos of how the attack might have been staged, who was behind it and future implications.
From a central banker's perspective, the attack and subsequent rise in the global price of oil could not be more opportune on a number of fronts. First, in desperate need of inflation, the bankers get the gift of core inflation in both PPI and CPI. Second, the rise in the price of oil, translated to gas at the pump and some home heating fuel, will show up in the convoluted GDP calculations, just in time for the third quarter and also adding a boost to the fourth if high prices persist.
Further down the road, high input prices and consumer prices for oil and gas should put the brakes on the economy eventually, putting a dent in discretionary spending which could spark a recession in 2020, just in time for the November US elections. Sure, higher prices and profits are good for some, for a while, but eventually, high gas prices act effectively as a tax on all consumers.
If you happen to be a central banker, this sounds great, doesn't it?
There are also political and financial aspects to the story. The attacks come right on the heels of President Trump's firing of John Bolton, the infamous neocon whose penchant for war with Iran was no secret. Conspiracy theorists believe this was long-ago planned, but Bolton's removal as National Security Advisor to the president was the trigger.
There's also the upcoming IPO of Saudi Aramco to consider. Initially, following the attack, the Saudis hinted that they would delay their long-awaited IPO, but now, a day beyond, they say they will forge ahead as planned. At issue is valuation. The Saudis believe the company should be worth $2 trillion at IPO, while the consensus among bankers handling the deal have the figure closer to $1.5 trillion. A lasting boost in the price of oil would naturally add to the valuation, bringing it closer to the level desired by the Saudis, who, after all, have control of the flow of oil, but not the price.
With no culprit positively identified, the entire affair looks to be highly organized - from the accuracy of the missiles and/or drones employed in the attack to the coordinated record trading in the oil futures pits - and the work of people or nations with an agenda. While this may appear far fetched to some, the power of the globalist banking cartel is well-known and could be pulling all the strings behind the scenes. It is not outside the realm of possibility that deep state globalists staged the attacks and price surge. It's also possible the the attacks were completely faked, just to get the price of oil higher.
There has been a glut of global oil supply since the US embarked on its fracking and shale output, becoming the world leader a few years ago. Russia is also pumping like mad, as are most of the OPEC nations. The amount of oil on world markets is so large that even small disruptions should not affect price - which has been falling for over a year - very much, but, in this case, it did.
While there isn't much the general population as a whole can do about higher gas prices outside of mass protests (a likelihood in Europe), there are a few actions the average motorist can take.
- Plan driving trips - organize your schedule to include multiple stops, thus reducing the amount of gas used rather than making individual trips for each task
- Seek lower prices - use online resources like GasBuddy.com to find the lowest prices in your area.
- Ride-sharing - organize with neighbors, friends and co-workers to share rides heading in similar directions.
- Drive smarter - slower speeds, properly inflated tires, and good driving habits can significantly reduce your fuel usage.
- Avoid wasted trips - deciding whether or not a trip is an absolute necessity can cut your overall fuel consumption considerably.
Most of all, don't buy into the media hype over gas prices, recession or any other narrative (like climate change) that the media water-carriers throw at you.
At the Close, Monday, September 16, 2019:
Dow Jones Industrial Average: 27,076.82, -142.70 (-0.52%)
NASDAQ: 8,156.40, +2.86 (+0.04%)
S&P 500: 2,994.17, -3.79 (-0.13%)
NYSE Composite: 13,107.98, -16.36 (-0.12%)
Tuesday, January 23, 2007
Yahoo! We Have a Winner.... Well, Maybe
It didn't take long for investors to sniff out a buying opportunity. Just one day after shedding 88 points, the Dow tacked on 56.64, putting the Dow almost 70 full points into the green for 2007. Reverse logic prevailed upon traders once again, as rising oil prices (+2.46, 55.04) were attributed for much of the gain. Exxon-Mobil (XOM), the one oil stock on the Dow, busted out for a 1.59 gain. The oil biggie, along with Boeing (BA +1.76), Caterpillar (CAT +1.76) and United Technologies (UTX+2.05) were the only Dow components to record gains of more than a point, but it was more than enough to offset fractional losses in 12 of the 30 Dow stocks. UTX surged on their earnings announcement, reporting profits up 38% from a year ago.
Over on the tech-heavy NASDAQ - which gained less than a single point - a mid-day sell-off accounted for the tepid closing value. The index was up nearly 19 points, but gave almost all of it back as fidgety traders awaited earnings news from Yahoo.
The news from Yahoo was not surprising nor was it encouraging. The search-and-portal company reported earnings of .19, down from .46 a year ago. Excluding certain one-time charges, they came in at .16, ahead of analysts' putrid expectations of .13.
The big shave from last year's numbers were rather expected, though it didn't stop the sellers who knocked .46 off the share price during regular market hours prior to the announcement and had nipped another .74 in after-hours trade shortly after 5:00 Eastern. However, by 5:30, trading reversed course and the stock added 1.44 on news of encouraging reports from the rollout of its new ad platform, code-named Project Panama.
With the stock trading at 26-29 and change, and earnings for the full year 2006 of a mere 49 cents, Yahoo will be hoisting around a trailing p/e of 45-50, should the stock remain at or near current levels, and that looks dubious at best. Additionally, analysts were not impressed with Yahoo's outlook for the current quarter or all of 2007, both below expectations.
Noting these minimalist readings, CEO Terry Semel's head could (and should) be on the chopping block. His tenure has been marred by the emergence of Google taking over the top spot in search and a 30% drop in share price over the last 12 months. The company also has significant image problems, not the least of which being its age. As one of the internet pioneers, the company, as a public entity, recently turned 10, regarded as ancient among internet users.
Without a little more pep in its step, regardless of how the after-hours trade shakes out, Yahoo may continue to be among the net stocks' laggards for the near term.
Next up: eBay
Over on the tech-heavy NASDAQ - which gained less than a single point - a mid-day sell-off accounted for the tepid closing value. The index was up nearly 19 points, but gave almost all of it back as fidgety traders awaited earnings news from Yahoo.
The news from Yahoo was not surprising nor was it encouraging. The search-and-portal company reported earnings of .19, down from .46 a year ago. Excluding certain one-time charges, they came in at .16, ahead of analysts' putrid expectations of .13.
The big shave from last year's numbers were rather expected, though it didn't stop the sellers who knocked .46 off the share price during regular market hours prior to the announcement and had nipped another .74 in after-hours trade shortly after 5:00 Eastern. However, by 5:30, trading reversed course and the stock added 1.44 on news of encouraging reports from the rollout of its new ad platform, code-named Project Panama.
With the stock trading at 26-29 and change, and earnings for the full year 2006 of a mere 49 cents, Yahoo will be hoisting around a trailing p/e of 45-50, should the stock remain at or near current levels, and that looks dubious at best. Additionally, analysts were not impressed with Yahoo's outlook for the current quarter or all of 2007, both below expectations.
Noting these minimalist readings, CEO Terry Semel's head could (and should) be on the chopping block. His tenure has been marred by the emergence of Google taking over the top spot in search and a 30% drop in share price over the last 12 months. The company also has significant image problems, not the least of which being its age. As one of the internet pioneers, the company, as a public entity, recently turned 10, regarded as ancient among internet users.
Without a little more pep in its step, regardless of how the after-hours trade shakes out, Yahoo may continue to be among the net stocks' laggards for the near term.
Next up: eBay
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