Max

Alors on danse

[Max @MaxPapazov]

https://t.co/hRtciA1FQd

[Max @MaxPapazov]

@swamy95000 @rickjeff78 They physically cannot raise rates

[Max @MaxPapazov]

@UnintendedCons5 @TrumpTruthOnX It’s obvious that Netanyahu pulled him in to fight his war and this was the propaganda they fed as the “reasoning”..

[Max @MaxPapazov]

@calvinfroedge @tejkothari But Calvin it’s different this time we don’t need oil we need SEMICONDUCTORS

[Max @MaxPapazov]

@infraa_ Sandisk 5000
Rate cut 100 basis points
Spacex 10T mkt cap
Strait open tmr
Mag 7 buying back 1T worth and fcf mooning

💃💃

[Max @MaxPapazov]

@DarioCpx WE ARE OWED MONEY AND WE WILL GET PAID

[Max @MaxPapazov]

@infraa_ @adamtaggart Holy shit must’ve been expensive 😂😂😂 ez cash though

[Cassandra Unchained @michaeljburry]

It has been ridiculous for a very very long time.

[Max @MaxPapazov]

Top is in for spx

[Javier Blas @JavierBlas]

What a remarkable outcome: the world's largest ever oil supply disruption failed to create a major energy crisis.

The IEA said 2026 shock was worst than 1973, 1979 and 2022 together. And yet, the cost of oil, natural gas, electricity and coal never surpassed the previous peaks.

[Max @MaxPapazov]

@calvinfroedge Top is in 😹

[🏴‍☠️ @calvinfroedge]

I am owed money and I will be paid

[Max @MaxPapazov]

@GuntherEagleman Coming back to this in 2-3 months 😂✌️

[Max @MaxPapazov]

@grib01605511 Nah I’m getting my fucking money they are getting desperate

[Max @MaxPapazov]

This ufc special gives off late Roman Empire vibes

[Max @MaxPapazov]

@Osinttechnical Wait but I thought a deal was agreed on ?? 🤣🤣 fucking clown show

[Max @MaxPapazov]

@Rebecca98869736 Dis bitch worse than Cathy wood 🤣

[Max @MaxPapazov]

@bubbleboi No fucking deal

[Bogus Banks, Behemoth Bubbles and Baseball Betting @bogusbanks]

I THINK SCOTT BESSENT HAS BEEN NAKED SHORTING OIL AS A MATTER OF NATIONAL SECURITY

The weekly draw from Cushing for the week ended June 5th was 1.1m barrels. That brings Cushing down from 22.44m barrels in the previous week to 21.34m barrels.

The last five weekly draws out of Cushing were: -1.1m, -583K, -2.79m, -1.7m and -1.6m. That's an average of 1.55m barrels per week.

The operational floor of Cushing is said to be 20m barrels.

Yes, Cushing is just 1.34m barrels from hitting the operational floor. At the current draw rates, less than a week away. Every available barrel that can be diverted away from WTI-Cushing to WTI-Houston is being diverted.

Why is Cushing important? Because that's where the WTI Futures contracts are physically delivered. This is what sets the price of oil for the entire world.

The US has four SPR's but none of them can bail out Cushing.

The SPR in West Hackberry is connected to Cushing by the Seaway Pipeline. It used to bring oil from West Hackberry to Cushing.

Then, US production started ramping up and the pipeline was reconfigured in 2012 to move oil away from Cushing and down to West Hackberry.

If the decision were made today, to reverse the pipeline, so it could pump from West Hackberry to Cushing, like it used to, it would require weeks to months.

There are no pipelines capable of moving oil from any of the four SPR's to Cushing. In other words, there's no bail out here.

I think Scott Bessent has been naked shorting oil as a matter of national security.

I bet he doesn't understand the plumbing of the system. He probably thinks "tamping down" oil is as easy as tamping down silver.

These guys are so removed from reality. Would it surprise you to learn that Mr Suit and Tie, Mr Wallstreet, didn't figure this out before he started naked shorting oil?

I'd bet dollars to donuts he's never changed his own oil.

To me, it sure looks like he didn't figure out the plumbing involved with WTI contracts, either.

It's such a good ole boy system. I bet they don't have a single person at the DOE that actually knows what they're doing. Would it surprise you?

So, why is the price of oil a matter of national security?

Because oil is the economy. Every mile you drive, obviously. But everything you buy in Walmart, or have delivered by Amazon, is delivered using oil, either diesel or gasoline. Obviously jet fuel. I heard on a podcast that Jetblu never hedges their fuel. Rising oil prices could bankrupt them.

As stores like Walmart start paying more to get their inventory delivered to their warehouses, those costs get passed onto consumers. Higher consumer prices.

Oh but, wait!!! There's more...

The instant thing that happens with the anticipation of higher consumer prices is higher bond yields.

The bond bubble
Think about it. If you are going to loan your money to the US Government for 4.67% but you anticipate that stuff you buy a year from now will cost you 10% more, why would you make the loan? If the market senses that consumer price inflation will be a result of higher oil prices, and they surely will, they'll demand higher yields.

Higher yields will pop the everything bubble.

The housing bubble
Mortgage rates more or less mirror bond yields, only a few basis points higher. As bond yields go up, mortgage rates go up. And that causes potential home buyers to be unable to qualify for a mortgage. That $1,200 house payment at 6.75% is now $1,500 at a higher rate. Sorry, you only qualify for XXXX amount per month.

If mortgage rates pop, the only solution is for the price of the house to come down. That's how the housing bubble pops as a result of true price discovery. The AirBNB bro's will panic.

The stock market bubble
Discounted cash flow models. Smart investors look at free cash flow on the stocks they own as a money machine. If the machine is anticipated to throw off 5% but bond yields have spiked to 5.5%, investors figure they will choose the risk-free return of a US Treasury Security. Stocks compete with bonds. As investors pull money out of stocks in search of a "safe haven" the selling pressure will cause a panic. Stocks are at record valuations on just about every metric. Plus, the stock market also has record levels of margin debt right now, too. People on leverage will become forced sellers.

The crypto market
I didn't write the rules, but like it or not, since 2020, crypto has been tied to the hip with Nasdaq. Michael Saylor's Strategy and Stretch disaster aside, a stock market panic is almost certain to bring Bitcoin down with it.

And of course, the bond bubble
The bond markets will force the US Government to pay higher rates to borrow money if they anticipate higher consumer price inflation, as I discussed earlier.

The US Government is paying over 23% of tax revenue, as interest, on the money they borrowed.

When we went through the last round of CPI inflation back in 2021 & 2022, interest costs were around 8% of tax revenue. Back then, the national debt was "just" $28.5 Trillion. Today, that number is $39.2 Trillion.

The rate of growth for tax receipts is lower than the rate of growth growth for interest expense. This is the beginning of a debt spiral. Spiking oil prices would kick that into high gear.

The US Government will have a lot to deal with if there's another round of CPI inflation. The popping of the everything bubble means all the pensions will need bail outs. Insurance companies too. Banks. Private credit. The US will have to borrow more to bail out all these failures. There will only be willing lending lenders at much higher rates.

Even the guy who saves all his money in bonds will be wiped out. As bond yields spike, bond prices fall.

All that wealth, just poof, goes away, real fast, with higher oil prices.

Maybe I'm wrong, but how can the market not see this coming?

We are days away from a default and oil prices are falling. I follow Josh Young, Chris Martenson, Jeff Currie, Art Berman and Rory Johnston, all highly respected oil and energy experts and all of them are blown away that we aren't at $150 already.

So, what am I missing about Cushing? There's no bailout that I see.

The only thing I can figure, is, as a gold and silver investor, I've seen the Tamp Downs over the years.

I've always known, deep in my gut, it was the US Government doing those tamp downs. Now I see oil going nowhere during the biggest energy crisis the world has ever seen. I suspect it's the government, again.

Cushing should be at the operational minimum any day now. We'll see what happens...

[Max @MaxPapazov]

@Rebecca98869736 So you think commercial inventories and spr levels GLOBALLY BEING AT DANGEROUSLY LOW LEVELS IS FINE ??? Especially when all the middle eastern refineries have been obliterated and theres no telling when the straight will actually be even moderately open ?? You are the retard

[H @__The__H]

Daily reminder:

1) Oil will squeeze to ATH (inflation adjusted) this year.

2) Iran and US will not have a peace deal signed today.

3) The SOH will continue to have little to no traffic for months.

4) Oil production will not increase until we find geopolitical peace and price stability. Which is months away. Possibly 2027.

5) Energy is going higher.