Wyoming Sour Crude At $3 A Barrel. Light Sweet Crude Continues Its Collapse.

I noted on here more than a decade ago that we would likely return to 1998 crude prices of $10 a barrel as this cycle came to a shattering end.  The frightening aspect of that statement is why I said crude would return to that price. 

Three weeks ago I noted West Texas Intermediate was trading at $7 a barrel and a disaster was building in the energy complex.  Today, Wyoming Sour is trading at $3 a barrel from a 52 week high of $52 and Light Sweet Crude is trading down as well. (Update: 12:30PM. WOW.  Looking at the oil futures contracts and there’s literally NOTHING being traded. It’s under a full collapse. Federal Reserve isn’t going to start buying oil contracts to prop up their criminal Wall Street buddies. But, there may be another large Federal Reserve infusion into the banking system within days. This could have substantial implications in financial energy trading firms. Is anyone on Wall Street, hedge funds or similar holding the bag here? Ultimately, these shocks may lead to energy and gasoline shortages. I’d suggest you keep your automobile gas tank full at all times. Even in parallel markets, if you heat your house with propane or heating oil, you may want to ensure your tank remains topped off.)  (If you want to repave your asphalt driveway, Wyoming Sour is your ticket.)  This after Trump announced a purely spin-based scam to stop the slide of oil prices some weeks ago.  Trump can no more control the price of crude than I can control the price of rice in China.  Literally everything out of this man’s mouth has become a lie as the world closes in on him.  The more stress he is under, the more he responds with lies.  It’s actually very hard to watch.  As a human being, I have great empathy for his emotional demons.  But, I have no empathy for the ego-based conman who is actually endangering human lives.  Even though I noted Trump would win the election in a lengthy post just days before the 2016 election, I also noted his presidency would likely be a disaster. I think I win a cookie for both anticipated outcomes. Of course, why is his behavior any different than Obama kicking five million people out of their homes while handing Wall Street $29 trillion for destroying the economy and millions of lives?  It is no different.  Obama is potentially even more pathological than Trump.

By the way, I posted ad nauseam when we were in the belly of the beast of $150 oil that peak oil was a myth.  Remember those days when the psychopaths on Wall Street fomented that fear through financial media and the press?  They were minting billions in profits off of this fear.  Energy futures markets exploded by thousands and thousands of percent increase in financial trading activity after Bill Clinton deregulated commodities and financial criminals jumped in head first into the oil markets.  Clinton should have gone to prison for that and may other criminal acts.  We have oil coming out of our ears.  And, natural gas and coal.  We have enough energy in this country for the next 5,000 years.  Humanity will innovate our ways out of fossil fuels before we run out.  Or, as I noted in past posts, we didn’t leave the Stone Age because we ran out of stones. 

Peak oil is an Enron-type Ponzi scheme created by Wall Street criminals and the biggest financial bubble in the history of the world.  Everything you believe about the economy and this world is a lie.  And, it’s all going to be exposed as that in due time. 

Elon Musk isn’t looking so brilliant recently either.  Not just for making an electric car when oil is wildly cheaper but also for his megalomania on the coronavirus, spewing non-scientific idiocy, pretending to understand topics he is proving to know nothing about and the like. This is a guy as insecure as Trump and the cult of Obama who are all part of this degenerate attention-seeking celebrity culture.

The U.S. energy complex has been one of the few areas where good paying jobs have not left this country en masse.   In other words, corporations can’t outsource or offshore industries reliant on natural geographic inputs or are limited by national boundaries.  The energy complex is in the midst of a rout. I honestly have no idea how they sidestep this other than cap wells and hope for a supply washout.  We have oil coming out of our ears.  Well more than when oil was $10 a barrel in 1998.  Unless the government wants to see energy complex jobs and potential energy independence collapse in this nation, the Federal Reserve is going to have to open the discount window to these companies and the government is going to have to try to institute some kind of price controls.  Or something similarly as desperate.  I’m highly dubious any of that will work but I expect they’ll try.  Or, we’ll just see global energy companies fall like dominos.  And, Saudi Arabia will default on its massive dollar debt burden. 

U.S. dollar empire is under serious duress. More on that soon enough. 

None of this is any surprise on here. None of this is a Black Swan.  None of it.  It’s institutionalized fraud and incompetence of unregulated/deregulated corporate capitalism and government.