Tom Petrie: Go Short Oil, Demand Destruction Is Here

Video - Tom Petrie with Erin Burnett - April 20, 2011

Just back from a trip to the middle east, Tom Petrie, Bank of America Merrill Lynch vice chairman, with his perspective on the future price of oil, and impact of global supply and demand.

Full Disclosure: I worked with Tom Petrie on Wall Street in 1990-91.  Smart and connected, now with over 4 decades of experience, and more time spent on a rig than any other analyst.  Ran his own firm based out of Denver for a long, long time - Petrie Parkman.  If you're long, look to exit on any spike.

$6 Gas? Could Happen if Dollar Keeps Getting Weaker

Comments

[LiberatedCitizen]

Don't Like a Weak Dollar? Might as Well Get Used to It

http://www.cnbc.com/id/42703813

China just quit selling oil the Saudi's cut back on production the Libyan Rebels had to stop shipping because of the bombings

China's Sinopec cuts off oil exports: state media

http://www.energy-daily.com/reports/Chinas_Sinopec_cuts_off_oil_exports_state_media_999.html

Protests turn violent in China let's hope that doesn't happen here this weekend the New Black Panthers are planning demonstrations in 60 cities saying the bombing in Libya is overshadowing their problems and they are sick of begging the white man they have Post Traumatic Slavery Disorder are Mad as Hell and aren't going to take it anymore (seriously they said all that)

http://www.cbpm.org/nbpp.html

http://af.reuters.com/article/worldNews/idAFTRE73K2F120110421?pageNumber=1&virtualBrandChannel=0&sp=true

$6 dollar gas here we come dollar devaluation is cruel to the consumer it will affect everything you need to live, food, clothing, etc. Just wait until TSHTF can you imagine with the prices how mad as hell those groups will be then? We may soon see riots here and the CIA has said civil unrest could be a problem in the past.

[john]

Obama, Holder Declare War On Oil Traders, "Speculators"

http://www.zerohedge.com/article/obama-holder-declare-war-oil-traders-speculators

Comment: So if the dollar is intentionally being de-valued doesn't that count as manipulation (indirectly)?

[Patriot Games]

Daily Bail...Did you happen to see what Dan Turton is doing now? If you need help connecting the dots, let me know.

It’s bizarre and fishy but understandable.

[john]

So, they are going to declare war on oil traders?

BP Attorney To Lead SEC Compliance Unit

http://www.hedgefund.net/publicnews/default.aspx?story=12435

[snip]

Leiman-Carbia previously worked at the SEC from 1989 to 1994 as a lawyer in the SEC’s then-division of market regulation.

He left the agency to work on Wall Street for Citi, JP Morgan and Goldman Sachs.

For the past two years, Leiman-Carbia was with the North American compliance unit for BP.

Here is a comment from a ZH reader that dead nails it.....

Goldman Sachs, Morgan Stanley, BP, TOT, Shell, DB and Societe General founded the Intercontinental Exchange in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate ”dark pool” trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.

That was then... $120 is NOW!

[Patriot Games]

John...

Are you copy and pasting from other sites or is this your own brainstorm that you keep posting?

Do you run a business blog?

You seem to just post here, not a lot of interaction? Is this just one of your dumping grounds?

[john]

I do this from a research and experience perspective 'hoping' I can add to the information available. I would hate to think that I have used DB as a "dumping grounds". If anyone thinks so just let me know. So far no complaints and as far as interaction there are quite a few here that do great work and have fantastic comments..... but I like to be brief and to the point. I did spend some as a researcher and did a 'few' other things too. Just trying to put the mosaic together based on that. You see, people are busy working, raising families and trying to make ends meet or worse. People don't have the time to research this. History is a work in progress and The Daily Bail is a great place to put this mosaic together. Heck, even this old dog still learns something from time to time..... No, I do not run a blog or do social media.... Just trying to help. If you have any suggestions I would appreciate them.

[S. Gompers]

Don't worry John, I don't think anyone thinks that other than Gobie, but then, he is the serial stalker/ spammer. I personally find a lot of what you post interesting.

[Patriot Games]

Thanks John. What I meant is that I have read that last post on other sites on this great www. I enjoy your posts and read many of them. I have even responded to a few of them but the Daily Bail deletes most of my comments. My comments are truth bombs, borrowed I know. They are often too hot to handle for people who have fragile belief systems. Gompers can only handle the few voices in his head. If too many more viewpoints seep in, he goes mental and lashes out. Gompers, John is a big boy. He doesn’t need your help…or do you?

[john]

Regarding the Intercontinental Exchange mentioned in my 7:22 post

Goldman Sachs, Morgan Stanley, BP, TOT, Shell, DB and Societe General founded the Intercontinental Exchange in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate ”dark pool” trading in the commodities markets.

Some of you will remember this commercial spot that ran back then promoting this online trading....

http://www.youtube.com/watch?v=W_NxYUpLE6A

[Patriot Games]

Allen West: Obama's Arrogance Is Like A Third World Dictator

http://www.youtube.com/watch?v=52-7zkxGi7Y

[Patriot Games]

Okay John...

What do you want us to do with all this information? What's your beef? Who is it with? It's not just commodities. The dark pools with stocks are even more threatening for the average investor. The SEC has no balls and no expertise. Obama doesn't understand this stuff and his Administration is being told what to do by Volcker (Group of Thirty) and Bernanke. The only dark pools Obama is concerned about is the ones found on the golf course. And they said that Obama was all about transparency. The deck is already stacked against the average investor. Only good daytrading gamblers are taking on the big guns.

[john]

The Intercontinental Exchange

https://www.theice.com/homepage.jhtml

[DailyBail]

talk about dumping grounds z/patriot games...you dumped and continue to dump on my boards on birther issues...you know i don't like it yet you do it anyway...john posts outstanding issue related links all the time and you accuse him...you are transparently arrogant (truth bombs my ass) and annoying..

[DailyBail]

and for the last time, volcker doesn't run anything...he couldn't even get the volcker rule into dodd-frank settling for a modified version only...your volcker theory is idiotic, like most of the rest of the nonsense you post...

[Dr. Pitchfork]

john,

Almost everyone appreciates the links. For others, however, "truth bomb" is synonymous with "being an asshole." You seem to know the difference. Keep posting.

[Patriot Games]

Opinion has caused more trouble on this little earth than plagues or earthquakes.

Voltaire

[S. Gompers]

Gobie, you are the one who needs help. Everyone else is fine.

[john]

Thanx ..... appreciate that. BTW Karl Denninger weighs in on this subject... The chart speaks volumes.

http://market-ticker.org/akcs-www?post=184722

[Patriot Games]

Grp of 30 is the think tank of the Central Bank. Its members are in the highest positions all around the world trying to implement and enforce banking rules. If they are not powerful, I would like to know who is? That doesn't mean that there isn't pushback. This battle over the control of wealth, power, and resources has many players. Some of them play on more than one team.

Yes Gomp, I guess for now I am in the Trump camp and not yours. Go figure. I hope to God that he finds and delivers what we all know about Obama. The fraud thing Daily Bail , not the birther thing. That doesn't mean that I will vote for Trump, that is a ways away.

[Sagebrush]

I think the TARP fraud started with G.W.'s administration. Obama is just continuing an in place agenda like all previous administrations have since 1913 when the FED started the rape of the wealth of the American People. The U.S. Government is corrupted beyond repair. It needs replaced.

[john]

Obama sees no magic bullet to push down gas prices

http://www.reuters.com/article/2011/04/23/us-obama-energy-idUSTRE73M10820110423

[snip]

(Reuters) - Barack Obama told Americans on Saturday there is no "magic bullet" to bring down high gasoline prices and said he wants to end what he called $4 billion in taxpayer subsidies to oil and gas companies.

[Patriot Games]

Well, he is only a community organizer.

[John]

UPDATE:


Federal judge weighs whether to let regulators rein in oil speculators

http://www.mcclatchydc.com/2012/02/27/140158/federal-judge-weighs-whether-to.html

[snip]

A federal judge on Monday refused to halt efforts by a key regulator to limit excessive speculation in the trading of oil contracts — which is driving up oil and gasoline prices — but hinted that he might soon rule in favor of Wall Street and let speculation go unchecked...

...Dennis Kelleher, president of the advocacy group Better Markets, sat through the court hearing and emerged concerned that the financial sector was chipping away at the intention of Congress.

“This is all about the industry trying to protect large dark (unregulated) markets,” he said, referring to the so-called over-the-counter markets, which are much larger than the regulated futures markets. Under Dodd-Frank they are slated for first-ever CFTC regulation.

The CFTC’s rules cannot take effect until the agency defines the over-the-counter products, called swaps, since the private bets involve swapping risk. That is scheduled to happen in April, which means limits on next-month contracts for oil could take place soon after that. Speculative limits on oil futures contracts that go out several months or even a couple of years would take effect somewhere around this December or early in 2013.