WTI Crude Craters To $55 Handle, High-Yield Credit Crashing-er

Zerohedge ^ | 12-15-2014 | Durden

[tcrlaf]

Having almost touched $59 overnight, WTI crude has collapsed back to a $55 handle, smashing the Ruble lower and high-yield credit spreads higher. US financial stocks are starting to weaken back towards the credit market's warnings as counterparty risk concerns spread...

[tcrlaf]

Lower oil is good for us in the long-term, *** IF *** the U.S. political situation allows us to take advantage of it, but it exposes the weakness in the over-all world economy, and it's cratering...

Yet again, we may be facing another huge financial crisis, which in reality is just an extension of the 2009 one.

Hopey Changey ...and all that.

[KOZ.]

oh no, do you guys get paid in rubles?

[tcrlaf]

Go away, troll....

[Oliviaforever]

Bad news for Texas, devastating news for Russia and Iran.

[tcrlaf]

“Bad news for Texas, devastating news for Russia and Iran.”

And Canada, and Norway, and anyplace else that has become dependent on Oil Revenues.

The Loonie fell to a 5 1/2 year low against the Dollar today, below 86 cents to the dollar. Not too long go, it was well over $1.

[Theoria]

Joy.

Did Wall Street Need to Win the Derivatives Budget Fight to Hedge Against Oil Plunge?

[elhombrelibre]

Bad news for Putin, Putinstan, and Putinistas.

[tcrlaf]

“Did Wall Street Need to Win the Derivatives Budget Fight to Hedge Against Oil Plunge?”

Yep...

I’m 100% SURE that they were told that if it didn’t pass, the world would come to an end, and the Billionaire Oligarch’s would no longer be able to control their campaigns... err... I mean donate to their campaigns.

And they putting up your 401k, to do it.

[lurk]

Centrally controlled and welfare state euro-socialist countries need oil revenues to supply free fairy skittles to their teat-dependent masses.

Brutal tyrant countries and wannabe islamic caliphates are dependent on oil revenue to fuel their plans to become regional or world players.

Things change.

[DuncanWaring]

I’ve been wondering about that myself, especially your first point.

[KOZ.]

Ohhh come on, even you gotta laugh at one....lol

Sometime the jokes just write themselves :)

[HamiltonJay]

Speculation and lies are the only reason Oil was ever over $50 a bbl... now that bigger fool is finally no longer showing up to keep the speculative churning going, they want everyone to panic the sky is falling... its insane.

[RayChuang88]

The issue is that Iran and Venezuela--so highly dependent on oil revenue--will be toast soon. Despite what some people think about Russia now, their US$400 billion multi-decade deal with China to develop petroleum resources in eastern Sibera--first with natural gas and later crude oil--will likely benefit Russia (they have a outlet for their petroleum output) and really benefit China (they can finally shut down most of their polluting coal-fired power plants).

[Wyatt's Torch]

HY chart:

[nascarnation]

Cheap gas is good for America.

Statists always desire to restrict mobility of the lower classes. Raising the price of fuels and vehicles is part of that agenda.

[Wyatt's Torch]

HY spreads vs UST: energy and all other corporate:

[Dusty Road]

We have 39 oil producing states, it impacts more than just Texas.

[Dusty Road]

“Speculation and lies are the only reason Oil was ever over $50 a bbl”

Yea I’m sure supply and demand had nothing to do with it.

[Starboard]

we may be facing another huge financial crisis

***************
Agree. Here’s a related article you might be interested in.

http://seekingalpha.com/article/2754455-oil-contagion-and-equities-u-s-equities-are-the-next-shoe-to-drop

[Gasshog]

yes, and thats a right humorous way to put it. lol.