Monday Mayhem – Iraq Kicks It Up A Notch

“A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed.”

Iraqi citizens are taking it to the streets to stop the Sunni Militant advance that has now moved on to Saadiya, a “city” of 20,000 people which leads the US media morons to conclude that they are just about to take Baghdad, a city of 5,672,513. The MSM plays on American’s complete lack of geographical knowledge and poor math skills to excuse the profiteering by their sponsors (Banksters and Energy Companies) that has driven the price of oil in America up 7% this month – even though oil wasn’t this high during most of the actual war in Iraq.  

Anyone who actually knows anything about war knows that the ISIL doesn’t have the men, equipment or supply lines to hold what they have now, let alone march on Baghdad, let alone move another 200 miles south towards the nation’s oil fields – but that doesn’t fit the story the media is spinning, so it doesn’t get any play.  

As noted by the New York Times (and pretty much no other paper) the goal of the ISIL is to provoke a civil war in Iraq and many of their clams of captured cities and Shi’ite executions are nothing but propaganda meant to incite riots. As I said last week, if you follow the money, it trickles down from the $2Bn monthly windfall this unrest is giving NYMEX traders, not to mention the 90M barrels of Global oil sold each day for +$7 ($19Bn per month), 2M of which (+$420M per month) comes from Iraq itself. 

 

 

Despite all the unrest, our $107.50 oil short from Friday’s post is still going strong at $107 this morning (up $500 per contract) and we’re still shorting at the $107 line (those of us not so crazy as to leave shorts on over the weekend) as we’re hoping to see some capitulation on the 154,000 contract that remain open (1,000 barrels per contract) on the NYMEX between now and Friday’s termination date.  

As of Friday, any open contracts must accept delivery FOB at Cushing, OK – a terminal which holds, at most, 50M barrels and is half full already. I posted a chart on Friday that showed FAKE(!!!) open interest of 172,551 open contract and now, one trading day later, it’s down to 153,752, which means they canceled about 19M barrels worth of orders on Friday.