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Who Is Behind The Oil War, And How Low Will The Price Of Crude Go In 2015?

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War Peace Sign - Public DomainWho is to blame for the staggering collapse of the price of oil?  Is it the Saudis?  Is it the United States?  Are Saudi Arabia and the U.S. government working together to hurt Russia?  And if this oil war continues, how far will the price of oil end up falling in 2015?  As you will see below, some analysts believe that it could ultimately go below 20 dollars a barrel.  If we see anything even close to that, the U.S. economy could lose millions of good paying jobs, billions of dollars of energy bonds could default and we could see trillions of dollars of derivatives related to the energy industry implode.  The global financial system is already extremely vulnerable, and purposely causing the price of oil to crash is one of the most deflationary things that you could possibly do.  Whoever is behind this oil war is playing with fire, and by the end of this coming year the entire planet could be dealing with the consequences.

Ever since the price of oil started falling, people have been pointing fingers at the Saudis.  And without a doubt, the Saudis have manipulated the price of oil before in order to achieve geopolitical goals.  The following is an excerpt from a recent article by Andrew Topf

We don’t have to look too far back in history to see Saudi Arabia, the world’s largest oil exporter and producer, using the oil price to achieve its foreign policy objectives. In 1973, Egyptian President Anwar Sadat convinced Saudi King Faisal to cut production and raise prices, then to go as far as embargoing oil exports, all with the goal of punishing the United States for supporting Israel against the Arab states. It worked. The “oil price shock” quadrupled prices.

It happened again in 1986, when Saudi Arabia-led OPEC allowed prices to drop precipitously, and then in 1990, when the Saudis sent prices plummeting as a way of taking out Russia, which was seen as a threat to their oil supremacy. In 1998, they succeeded. When the oil price was halved from $25 to $12, Russia defaulted on its debt.

The Saudis and other OPEC members have, of course, used the oil price for the obverse effect, that is, suppressing production to keep prices artificially high and member states swimming in “petrodollars”. In 2008, oil peaked at $147 a barrel.

Turning to the current price drop, the Saudis and OPEC have a vested interest in taking out higher-cost competitors, such as US shale oil producers, who will certainly be hurt by the lower price. Even before the price drop, the Saudis were selling their oil to China at a discount. OPEC’s refusal on Nov. 27 to cut production seemed like the baldest evidence yet that the oil price drop was really an oil price war between Saudi Arabia and the US.

If the Saudis wanted to stabilize the price of oil, they could do that immediately by announcing a production cutback.

The fact that they have chosen not to do this says volumes.

In addition to wanting to harm U.S. shale producers, some believe that the Saudis are determined to crush Iran.  This next excerpt comes from a recent Daily Mail article

Above all, Saudi Arabia and its Gulf allies see Iran — a bitter religious and political opponent — as their main regional adversary.

They know that Iran, dominated by the Shia Muslim sect, supports a resentful underclass of more than a million under-privileged and angry Shia people living in the gulf peninsula — a potential uprising waiting to happen against the Saudi regime.

The Saudis, who are overwhelmingly Sunni Muslims, also loathe the way Iran supports President Assad’s regime in Syria — with which the Iranians have a religious affiliation. They also know that Iran, its economy plagued by corruption and crippled by Western sanctions, desperately needs the oil price to rise. And they have no intention of helping out.

The fact is that the Saudis remain in a strong position because oil is cheap to produce there, and the country has such vast reserves. It can withstand a year — or three — of low oil prices.

There are others out there that are fully convinced that the Saudis and the U.S. are actually colluding to drive down the price of oil, and that their real goal is to destroy Russia.

In fact, Venezuela’s President Nicolas Maduro openly promoted this theory during a recent speech on Venezuelan national television

“Did you know there’s an oil war? And the war has an objective: to destroy Russia,” he said in a speech to state businessmen carried live on state TV.

“It’s a strategically planned war … also aimed at Venezuela, to try and destroy our revolution and cause an economic collapse,” he added, accusing the United States of trying to flood the market with shale oil.

Venezuela and Russia, which both have fractious ties with Washington, are widely considered the nations hardest hit by the global oil price fall.

And as I discussed just the other day, Russian President Vladimir Putin seems to agree with this theory…

“We all see the lowering of oil prices. There’s lots of talk about what’s causing it. Could it be an agreement between the U.S. and Saudi Arabia to punish Iran and affect the economies of Russia and Venezuela? It could.”

Without a doubt, Obama wants to “punish” Russia for what has been going on in Ukraine.  Going after oil is one of the best ways to do that.  And if the U.S. shale industry gets hurt in the process, that is a bonus for the radical environmentalists in Obama’s administration.

There are yet others that see this oil war as being even more complicated.

Marin Katusa believes that this is actually a three-way war between OPEC, Russia and the United States…

“It’s a three-way oil war between OPEC, Russia and North American shale,” says Marin Katusa, author of “The Colder War,” and chief energy investment strategist at Casey Research.

Katusa doesn’t see production slowing in 2015: “We know that OPEC will not be cutting back production. They’re going to increase it. Russia has increased production to all-time highs.” With Russia and OPEC refusing to give up market share how will the shale industry compete?

Katusa thinks the longevity and staying power of the shale industry will keep it viable and profitable. “The versatility and the survivability of a lot of these shale producers will surprise people. I don’t see that the shale sector is going to collapse over night,” he says. Shale sweet spots like North Dakota’s Bakken region and Texas’ Eagle Ford area will help keep production levels up and output steady.

Whatever the true motivation for this oil war is, it does not appear that it is going to end any time soon.

And so that means that the price of oil is going to go lower.

How much lower?

One analyst recently told CNN that we could see the price of oil dip into the $30s next year…

Few saw the energy meltdown coming. Now that it’s here, industry analysts warn another move lower is possible as the momentum remains firmly to the downside.

“If this doesn’t hold, we could go back to price levels in late 2008 and early 2009 — down in the $30s. There’s no reason why it couldn’t happen,” said Darin Newsom, senior analyst at Telvent DTN.

Others are even more pessimistic.  For instance, Jeremy Warner of the Sydney Morning Herald, who correctly predicted that the price of oil would fall below $80 this year, is now forecasting that the price of oil could fall all the way down to $20 next year…

Revisiting the past year’s predictions is, for most columnists a frequently humbling experience. The howlers tend to far outweigh the successes. Yet, for a change, I can genuinely claim to have got my main call for markets – that oil would sink to $US80 a barrel or less – spot on, and for the right reasons, too.

Just in case you think I’m making it up, this is what I said 12 months ago: “My big prediction is for $US80 oil, from which much of the rest of my outlook for the coming year flows. It’s hard to overstate the significance of a much lower oil price – Brent at, say, $US80 a barrel, or perhaps lower still – yet this is a surprisingly likely prospect, the implications of which have been largely missed by mainstream economic forecasters.”

If on to a good thing, you might as well stick with it; so for the coming year, I’m doubling up on this forecast. Far from bouncing back to the post crisis “normal” of something over $US100 a barrel, as many oil traders seem to expect, my view is that the oil price will remain low for a long time, sinking to perhaps as little as $US20 a barrel over the coming year before recovering a little.

But even Warner’s chilling prediction is not the most bearish.

A technical analyst named Abigail Doolittle recently told CNBC that under a worst case scenario the price of oil could fall as low as $14 a barrel…

No one really saw 2014’s dramatic plunge in oil price coming, so it’s probably fair to say that any predictions about where it’s going from here fall somewhere between educated guesses and picking a number out of a hat.

In that light, it’s less than shocking to see one analyst making a case—albeit in a pure outlier sense—for a drop all the way below $14 a barrel.

Abigail Doolittle, who does business under the name Peak Theories Research, posits that current chart trends point to the possibility that crude has three downside target areas where it could find support—$44, $35 and the nightmare scenario of, yes, $13.65.

But the truth is that none of those scenarios need to happen in order for this oil war to absolutely devastate the U.S. economy and the U.S. financial system.

There is a very strong correlation between the price of oil and the performance of energy stocks and energy bonds.  But over the past couple of weeks this correlation has been broken.  The following chart comes from Zero Hedge

Energy Stocks - Zero Hedge

It is inevitable that at some point we will see energy stocks and energy bonds come back into line with the price of crude oil.

And it isn’t just energy stocks and bonds that we need to be concerned about.  There is only one other time in all of history when the price of oil has crashed by more than 50 dollars in less than a year.  That was in 2008 – just before the great financial crisis that erupted in the fall of that year.  For much, much more on this, please see my previous article entitled “Guess What Happened The Last Time The Price Of Oil Crashed Like This?…

Whether the price of oil crashed or not, we were already on the verge of massive financial troubles.

But the fact that the price of oil has collapsed makes all of our potential problems much, much worse.

As we enter 2015, keep an eye on energy stocks, energy bonds and listen for any mention of problems with derivatives.  The next great financial crisis is right around the corner, but most people will never see it coming until they are blindsided by it.

  • K

    I believe the Saudi and U.S. started this. From the U, S, perspective, to punish Russia. From the Saudi perspective to crush the Iranian economy. You see if the Iranian economy crashed, they may not have the money needed, to complete their nuclear bomb project. As well as have to withdraw their support for Syria. Also from the U.S. perspective, crash the shale oil industry. You may now have the tipping point, to crash the U.S. economy. Always remember that is also the goal, of those who control D.C.

    • kfilly

      I agree. This is going to get ugly fast. I can’t wait to hear the ravage crowds blaming capitalism for their ills, and speeches by our “leaders” that are intended to fan the anti-capitalism crowds. Weird, how history repeats because stupid people don’t know history.

      • Hammerstrike

        How will they blame in on Bush? He is already less unpopular than Obama.

        The populaces aren´t going to believe in hope and change again.

        • kfilly

          Don’t be so sure of that. Amerikans are stupid, lazy, and apathetic. A lot of people still believe their government is a global force for good. When the economy collapses, the evil capitalists will be blamed, and socialism will come to the “rescue”. Here comes full blown communism.

    • Priszilla

      The us seems to be all about punishment.
      If you don’t stop that attitude you’ll continue running in circles. Appearing to be moving but not getting anywhere.

    • Orange Jean

      I agree with you totally! Could not have said it better.

      • K

        Thank-you Jean, always good to gear from you.

    • Lennie PIke

      Change the word you used “punish” to attack, and I agree 100%

    • alan

      I think its aimed at the BRICS in general and Iran and Venezuela too. As long as gas is cheap the people will look the other way, sad but true.

    • Hammerstrike

      Shale oil, once under federal control, shall be used to finance the police state and its fleets of predator drones.

      The H bomb have existed for over 60 years now, Iran completed its military nuclear program years ago.

  • kfilly

    Preparing hard for what is to come. I see little time left, and things becoming more difficult to acquire.

  • rentslave

    Gas hit $1.56 in Indiana today.

    • Paul Patriot

      $1.56 !!!!!!!!!!
      And I thought $1.88 in South Carolina was amazing!

      • Guest

        I’m in South Carolina, too.

      • Gary

        $2.49 in L.A. the last week. lowest in years!

    • Ian Beattie

      It’s $3.33 in Oahu,Hawaii. That’s cheap for us. It’s crazy expensive to live here, but at least I’m not freezing…Happy New Year!

      • tacoma

        Of course Hawaii can establish a direct supply agreement with Iran who will then divert one China supply tanker per month to supply Hawaii. Price will drop by half I guarantee you. But then the president might call on the CIA to stage a regime change of the state government…

        • Ian Beattie

          What are you talking about? The president loves Hawaii’s state regime. Why do you think he claims to be born here and always comes here to vacation? I disagree, unless you were being sarcastic…

  • qe4qemore

    north Dakota could conceivably be the first state to go from having the lowest unemployment to having the highest in the same year,folks up there better prep for a massive slowdown

    • Tim

      Good point!

  • Mike Smithy

    All of the theories that Michael outlined are plausible. It is also conceivable that the crash in oil was the premeditated and calculated black swan event devised by the banksters to crash the economy. I have no doubt that the banksters are finding it increasingly more difficult to keep the ponzi scheme alive. As a result of crashing oil prices, the junk bond bubble will be the tipping point and the banksters can deflect culpability for the mess that they created.

    • T.

      Right on. The most evil and vile devils on the planet are behind all of this – The International Banking Cartel of the House of Rothschild. 2015 is the year for the Global Reset of all Currencies and resources. That means the end of the Petro Dollar and the Dollar as the Reserve Currency of the world. This will be a Massive paradigm shift of wealth and power from West to East.

      • elmcqueen3

        As expected…The New World Order is hard at work!

        • Isaac111

          The New World Order has met it’s Waterloo. No joke….Google this for your proof… Wellaware1.

          • Mike Smithy

            I’ll be the first to admit that a smidgen of paranoia is a good thing. However, Wellaware1 is a bridge too far.

          • Da_Neutral_Observer

            Agreed. Anyone who believes that Alex Jones is the Crown Prince of Denmark in disguise has gone too far off the deep end to be objective. C’mon, Wellaware1!

            First off, the guy you claim is Jones’ real identity (Prince Gustav) is NOT part of the Danish monarchy. Prince Gustav is the crown prince of Sayn-Wittgenstein-Berleburg — a county now known as Siegen-Wittgenstein in southeast Germany.

            Despite bearing an incredible physical resemblance to Jones, I’m sure the German royal is probably having a good belly laugh right now. I’m sure Alex Jones, the native Texan radio host is also quite amused.

            The Danish Monarcy, on the other hand, is probably pissed. Good thing Prince Gustav’s mother is a half-Danish, half-Swedish princess who will disavow knowing Wellaware1 to her full-blooded Danish relatives.

        • Mondobeyondo

          They are. And now that we’ve caught on, they’ll try that much harder to impose their plans and goals.

      • Aubryn

        As you know the verse says Ninevah.

        • T.

          Yes. Also Jonah said 40 days not weeks as I did. That was then – This is now.

      • Jack Jackson

        Dear Mr. Smithy:

        I like your thinking and think much the same from what I have read. But you know, I have been wrong before about this “earth shaking event”, so I am a little hesitate to really act on my thinking. Yes, we have a debt bubble and it is wobbling and yes, the globalist are working on moving the dollar out and maybe, SDR’s in. and yes, we are at war around the world, but THIS YEAR IS IT? What am I missing?

        Jack

        • T.

          There are at least 5 credible sources that I know of who say that this year (most likely the 2nd half) will bring in the “Demise of the Dollar” and all the Consequences related to that.

          • Jack Jackson

            Dear T:

            I have Rickards, Stockman, Brandon Smith, J.C. Collins, Warren Pollack and fellows like that. I follow zero hedge, philosophyofmetrics, automatic earth, 321gold and sites like that. Are we on the same page here? Deflation spiral, liquidity crisis, IMF to the rescue. NWO? USA losing its veto authority at the IMF? Christie Legarde and her “magic no. 7″?

            Jack

          • T.

            Rickards is one who has now moved into 2015 camp. The others I don’t recollect them mentioning any year specifically – maybe you have. But four others who use different means to arrive at the same time frame are in alphabetical order; Martin Armstrong, Jonathan Cahn; Marshall Swing; and Lindsey Williams. Then there are at least 10 more men of great knowledge and experience in the financial and commodity markets who realize the Collapse has been extended beyond anyone’s reasonable imagination, thus believe it to be imminent but do not forecast dates.

          • Jack Jackson

            Dear Mr. T:

            Now we are in to it. Let us have a useful discussion. I am familiar with Armstrong’s work and Lindsay Williams’ work. I think that it is fair to say that Mr. Williams hasn’t always been on the mark with his prognostications. He is generally working in the right directions but I believe that his sources aren’t so right as to present themselves to be, oil men and that. I do believe that there is a spiritual component to these developments but I am slow to assign to them specific spiritual truths due to the possibility of error. In the words of Bob Dylan, “let’s not speak falsely now, the hour is getting late”. Seriously, I am not hear to prove myself right, but instead to understand what is about to transpire. I was draw to your reading of the “big picture”. And yes, I love Jesus Christ, but in my own way. I have watched Pastor Emig’s video on the Shimitah and was impressed. Have you see Lagardes video on the “magic no. 7″?
            If so, what do you make of it.

            Sincerely,
            Jack

          • Sandbagger

            This is interesting conversation.
            I’ll check for Lagardes video.

            For those who know the Illuminati and their symbolism, check out Scholastic Rock’s Lucky Number 7!

          • Jack Jackson

            Interesting, no? I bring this up because as T has referenced there is a “sea change” occurring at the IMF, G20, BIS, etc. It seems to me that political posturing and war stance is merely a prelude to a shift in the monetary system which is the REAL center of power. As is my nature, I want to know when this crisis/shift is about to happen, I mean within months because I need to know when I need to leave town for my country reboubt. The Lord will see me through wherever I reside.

            Jack

          • T.

            I think we all would like to know exactly when it’s all going to come down, but I don’t know how close to that time any of us can get realistically. I will say that until proven incorrect the time frame of Sep/Oct 2015 aligns with Armstrong; Cahn; Swing and LW. So, if I was a bettin man – That would be my bet and is why I feel very strongly that this is the most likely time period for the takedown. The speed with which all the geopolitical and financial events occurred in 2014 and into the very end of the year – tells me the table has been set for this time period also.

          • Jack Jackson

            Dear Mr. T:
            I really am on the same page with you on this.  After all the ZIRP and QE still low growth(If there is growth),  collapsing bond market in energy and emerging markets, and now Greece, currency wars, continuous military action, And the talk of reset, or “new britton woods” .  The 2010 IMF code of reforms, the stupendous debt levels which yield very little for the system which creates it.  China passing the US in GDP, asset bubbles world wide, All the signs are there in the economic news and a willingness to reject the dollar and replace it with SOMETHING.  Surely, we are on a precipice.  I guess that I have gazing into the abyss for such a long time(ten years now), I just want it to end.  thanks for talking with me.  Keep me posted. Sincerely,
            Jack

          • Jack Jackson

            Dear Mr. T:
            Check out David Stockman at USA watchdog.. And Ron KIrby at the same place. Both call for systemic crisis from default in oil patch bonds i.e. 500 billion worth.

          • T.

            Bro Jack – I’m with you. Watched/read both. Both are really smart guys in my book. They both know whereof they speak and speak the TRUTH, which I dearly love. We live in a MSM world of Disinformation, Obfuscation and Out Right LIES. All the best to you.

          • Sandbagger

            Occult Message in Speech by Christine Lagarde of IMF…check out at 5:15. “We have seven strong years.”

            Agenda 21. Seven years from 2014: 2021

          • T.

            Jack we are on the same page “I am not here to prove myself right” either. However, everyone must do their own homework and then arrive at certain conclusions, so here are some of mine. As a Christian I try to look at everything from a Biblical perspective. I give no heed to the Shemitah (7 year cycle of debt release) as put forth by Cahn and others, Because in the N.T. God inn Christ Jesus has removed all those O.T. feasts etc. However, I believe the banking Cartel headed by the Vile Rothschild operate according to the Shemitah. Why? Because they are Jews. Actually, this is the single greatest reason that I believe that 2015 is the year for the Big one. Secondly, I have been following LW for years and he has been very accurate until last year. Two things happened. His best source Mr. Fromm died about 2 years ago and his now last source was as surprised as anybody that the global currency reset did not happen by Mar ’14. So, the real powers that be threw the lower level Elite a “curve”. And it was a Big one. However, his same source is saying that yes, 2015 is now the time for them to begin our (U.S.) final descent. Enough for now.

      • gfmucci

        Will we humble ourselves, and will God ‘relent’ against the US as He did against Nineveh?

        • T.

          Great question. That is/has been my hope and prayer – Simply because HE is the Only way out for true America to make it through what is coming down.

    • Larry

      When oil gets to $20….Michael will say..”we will be in trouble if oil goes below $10.
      Every issue Michael talks about is never an issue.
      If it was gonna collapse it,already would have.
      Funny,,,never heard Michael talk about these good paying oil jobs over last years either.

      • Lennie Pike

        Say hello to Curly and Moe for me – and get a haircut why don’t ya. And one more thing – you’re not funny.

      • FortuneSeek3rz

        Low oil prices are good for the broader economy. That is something this blog has difficulty acknowledging. There are other areas of the economy that are begging for growth. The oil patch has had its day. Now its time to spread the wealth!

    • frank1569

      This would also explain why the Big Banks ordered their Congressional employees to insert a few lines into the spending bill that puts us taxpayers on the hook for their future gambling losses. It’s like taking insurance before the Blackjack hand is dealt because you already know the dealer is gonna get the king and ace.

    • WK

      I have seen other reports showing the banksters are getting hurt bad by the oil derivatives racket and selling of puts to try to rake in revenue for the industry with the certainty that prices would never go lower where these puts would be exercised. Sound familiar? It should.

      The banksters get away with harming the banks if they know the banks are going to get bailed out, and there was the December cromnibus bill that indemnifies these assholes. That way, they can wage whatever action they want against Russia and others, even if it meant harming our own banks since the American people will be bailing them out again, or perhsps that is their master plan. And of course, we can print all the money we want out of thin air, the Fed really no has assets backing fiat currency.

  • tacoma

    The oil price war will crush those who has large oil *export* productions and depends much on the revenue of that export if earned in US dollar.

    US – This is the country that has increased production from 4.5 mb/d 5 years ago to today’s 11 mb/d, due to shale. This massive increase entirely goes to domestic consumption and thus reduce import, is responsible for the world glut and price collapse. But will US got hurt? No. It will be just a breakeven. Because US does not export, and because whatever is the financial or industrial impact, the US can always print more petro-dollar to compensate.

    Russia – This country has 10 mb/d production, much of it goes to export to earn vast amount of foreign currencies. The price war will hurt Russia majorly and is why the ruble is dropped 50%. Russia has enough foreign reserve and can take measures to stabilize the ruble short term. But long term it has to both restructure the economy and to find a new market that will pay not in US dollar. That long term market actually has been found and agreement established – China. So Russia will take a short term hit but long term it will be OK. The net result is Russia departs from Europe and become a long term adversary of the USA. Call this Cold War 2. The US wanted to start Cold War 2 and should be happy.

    Saudi – This country can take low price due to its very low cost of production. As such, it can pursue short/medium term political objectives, seeing drop of oil revenue just a cost of these objective. It is in unspoken ally of the US trying to destabilize Iran and win the Syrian civil war, both with a regime change to their liking.

    The ‘Rest’ – Venezuela, Mexico, Canada, Africa – all will get hurt by the oil shock. They are just collateral damage in yet another US initiated war.

    China – the Big Winner! Low price will save this country a few hundred billions (dollar equivalent). China will take this saving for all kinds of projects. One of which will be to make the Yuan a world currency. A possible Yuan-Ruble peg will shock the currency world, and will benefit both countries as masters of the new world order. Both will say: Thanks Uncle Sam. As usual, the US may win short-term but always lose long-term. Just like those corporate quarterly profit statements.

    • Mike Smithy

      Tacoma, I like your analysis and as a consumer, I like cheap fuel as much as the next guy. However, I suspect this is a dangerous game of chicken for the U.S. The junk bond market and related derivitives invested heavily in the fracking industry. I am not so sure that the banks can take the hit if the domestic fracking producers have to walk away. Perhaps the fed has a QE4 plan to bail out junk bond market. We’ll have to wait and see.

      • T.

        Tacoma is Wrong. The U.S. will be devastated Financially. We will lose the Petro dollar advantage so our Currency will be Reset down – first by 35% and again by another 35% and – The shale oil industry will be devastated. Soon to follow – The Dollar loses reserve status and QE ends and Hyperinflation begins. Russia and China are big Winners. Russia tested their alternative to the SWIFT system for inter bank payments this month and it begins in full effect next May. The United States of America will be DEVASTATED Economically and descend into a police state with great poverty and suffering. This has all been planned – The bringing down of America by the Banksters.

        • Patrick

          Your scenario is not going to happen. Tacoma’s scenario is probably closer to being correct.

        • tacoma

          As I said, US wins short-term. Your scenario can happen, long term. What was an argument between Obama and Putin, G8 ‘pals’, a decade ago about NATO expansion into Russia’s border has now become full blown Cold War 2. This is due to Obama authorized the CIA to stage a coup to change the Ukraine regime to his liking, just after the Sochi Olympics. This direct act of aggression pissed off Putin big time. He proceeded to outplay Obama (again) and got Crimea to rejoin Russia. Obama (who has an oversized hidden ego) responded by starting Cold War 2. This is a fight between two leaders, not between countries. In a year’s time Obama will be gone. Putin will still be president for a few more years. Watch carefully what he will do.

          • T.

            I agree. I think short term equates to no more 3 or 4 months max. Russia and China are aligned against the International Finance Dollar centric fiat Banking System – Which is in its death throws. In 10 months max – there will be No more Petro Dollar; the U.S. shale industry will be Dead; Their associated Bonds and Derivatives will have imploded; Banks will have failed and a full blown Credit Crisis will be underway here in Amerika. Russia calls the shots for European Energy needs and can demand payment in ANY Currency they desire including GOLD. Germany the greatest European power will soon vote for Russo/Sino trade and economics over the protests of the USSA. Protect thyself.

          • alan

            It will continue when Hillary ascends to power in 2016.

        • Lennie Pike

          Putin kicked these banksters out of Russia and is now being attacked by them for doing so. So as far as “Russia a big winner”, “planned by the banksters” is concerned, for your scenario to happen, Putin must be removed from power along with the 90% of the Russians who support him.

          Or it could all be a big theatrical production – but I doubt Putin would play the part.

          • Lennie Pike

            Or, it is very possible that Putin will be taken out. These banksters are very good at taking people out – and by the way – they are allies of the Chinese (obviously) and will destroy what’s remaining of the U.S..

            There is no longer a workforce capable of industrial production in the U.S. – pretty much only drugged zombies remaining most of whom should be docked a days pay for napping on the job.

          • Lennie Pike

            Or, China might tell the banksters – “go jump in a lake, all of this is ours – if you’re not Chinese or Russian, we don’t need you anymore – “now you’re out!!!!”. That would be a good day for me.

          • alan

            If we look at our foreign policy, Lurch and Hitlery and Obola we can only expect a failure or nuked.

            Sending the three stooges to deal with Putin will get someone into trouble real quick.

            I’d rather have a neutral Russia than a pissed off Russia backed by 1.4 billion Red Chinese.

          • T.

            Look – All of us who comment on this blog are simply making our best guess. None of us have it all right. Having studied this for a decade now and with the best info available by internet writers, there are a few things we all know for a fact. First, the DOLLAR will Die. As Americans We all will be adversely affected by this to a great degree. Secondly, our nation’s Government will dramatically change for the worse, because of #1. Thirdly, the International Banksters and the BRICS are working to form a New International Currency/Trade system, because the present Dollar centric System is on the DEATH Bed and soon to be Buried. Fourthly, exactly what role the national leaders are doing in their Collusion with one another is nothing but Speculation and Conjecture on OUR part, because it is all Top Secret stuff with the Banksters/National Leaders and their Individual Conspiratorial interactions with one another. But we must be vigilant and prepare as best we know how. God bless

          • Lennie Pike

            I agree with all of that. My comments that came after my reply to yours and looks like at the same time as your reply to me, show that we are in agreement. God bless you also.

    • James

      Amen to your last paragraph…Indonesia wins too, because we are net importer of oil

      • tacoma

        Yes, and include India, Japan and other Pacific rim states. Watch carefully what India and China do with their low oil cost windfall. Together they have 2 billion people. Both have strategic relationships with Russia, who supply them with advanced military systems. They are definitely not puppets of USA. Will India establish oil supply relationship with Russia?

  • FortuneSeek3rz

    These collapsing energy prices are a boon for the people who need it- the middle class, the working class, the blue collars. It’s about time the middle had their stimulus amidst a wave of rising food and healthcare prices. Long live cheap energy!

    • James

      It’s a different story in Indonesia. Yes, gas prices are falling, but food prices stay the same.

      • FortuneSeek3rz

        They will come down eventually. It will take time for the global economy to reprice for the glut of energy.

    • Gay Veteran

      except for the fact that growth in good jobs have been in the oil patch. For the rest of the country it has been growth in low paying jobs.

      • FortuneSeek3rz

        There has been excellent growth in healthcare, computing/networking, and construction. It is a myth that “all” the good jobs have been in the oil patch.

        • Gay Veteran

          correct, it wasn’t 100%, and now a lot of those jobs are going to disappear with the other jobs that were created to service those with high paying jobs. Going to see a lot of service employees losing their jobs in states like North Dakota, Texas, etc.

          from Zero Hedge:
          “…since December 2007, or roughly the start of the global depression, shale oil states have added 1.36 million jobs while non-shale states have lost 424,000 jobs….”

    • Lennie Pike

      It also serves as a bribe – in exchange for your freedom, and serves to buy the little more time needed to ensure that the necessary number of foreign troops are stationed and ready inside the U.S.. Most Americans will accept the bribe gladly.

  • Ian Beattie

    Should I be investing in physical stores of oil? While it’s cheap…

    • Tim

      Where would you store it? What would you do with unrefined crude oil?

      • Ian Beattie

        Fort Knox? I hear it has plenty of empty space…

        • Tim

          Good one!

  • MeMadMax

    Jobs will be lost in the oil industry, yes…

    But on the flip side, the rest of the country will start being able to hire more people and expand as well(due to savings in gas), particularly with small margin, small businesses, taking up the slack….

    So…

    I DONT WANT TO HEAR ABOUT ANY MORE BULL ABOUT HOW THE OIL BARONS ARE GONNA LOSE MONEY AND IT WILL BE “BAD FOR THE OIL ECONOMY”…

    Ok?

    • Warren

      Do you feel that road construction and other forms of infrastructure will kick into high gear during the oil collapse to keep people employed?

      • MeMadMax

        Not at first.

  • James

    The Saudis say they will react if the price falls below USD 40/barrel…

  • Kurt

    We often wish for the obvious (cheap gas) without seeing what’s happening behind the curtain. More often than not, this Country wishes for the things that wind up being bad decisions in hindsight. Cheap oil is no different than 50% housing appreciation, 0% interest rates, WMD’s in Iraq, Gulf of Tonkin, The Lucitania, they are all “pre-cursers” to a much larger problem that is being manipulated into existence. Be careful what you wish for.

    • toadsticker

      They people in this country want rising wages and shrinking prices. It doesn’t work that way.

      • Actually it could. Technology lowers prices for goods and services per unit, increasing demand for the good in proportion (or more than) the drop in price. This is “good” deflation, since it allows for more goods and services to be created without impacting the serviceability of loans or the positions of savers (or even improves serviceability slightly through increased nominal sales). An example is seen with Moore’s law, which has reduced the cost of computing dramatically.

        “Bad” deflation, however, is caused purely through the workings of financial markets and impacts the serviceability of loans.

        Ideally price levels overall would be stable, with newly invented goods being produced at high price but established goods stable to dropping as a consequence of technological improvement.

  • Bobby

    I believe the oil price crash is due to a global economic deceleration. Not a price war. Yes, that includes the US.

    • howmuchforyourwings

      I agree with you. I love Michael’s articles, and he’s ususally got it right. However, this time he is wrong. The price drop in oil is from reduced demand because people world wide can’t afford it. All comodities are down world wide: iron ore, coal, copper, corn, cotton, etc. All these comodoties are down almost the same percentage as oil. The world is broke, tapped out, borrowed out, and can’t afford to buy anything. The only oil war going on right now is the war to keep market share. That’s why the Saudis won’t cut production. They know if they cut production, price won’t go up that much because of reduced demand due to lack of discretionary funds world wide and some income is better than no income. The low price of oil is merely a signal of the coming ecomonic collapse.

      • Lennie Pike

        All of those commodities are NOT “down almost the same percentage of oil”. Try another reason please.

        • howmuchforyourwings

          You should do more research because they are. Even the Baltic Dry Index is down considerably. Copper is down from $4.50 to $2.88. That’s almost 40%, not far from oil’s decline. Just a few years ago corn was $10.00 per bushel. Today it is only $4.00 per bushel. That’s a 60% decline in price. That’s actually more than oil. Cotton is down from $229.00 to less than $60.00. That is way more than oil. This is only three Commodities. I could keep going, but I’m not. You do your own research from here. Really, I don’t need another reason. These are all the same price drops that occured prior to the 2008 collapse. People were broke then, and they’re broke now. It’s happening all over again. We’re getting the same price signals again we got over six years ago screaming “something wicked this way comes.” The only war taking place here is a war for market share.

          • Lennie Pike

            aaaaaaaah…………your speaking of prices of “just a few years ago”. The 52 week high petroleum from today was 114.77. The price of oil did not fall in conjunction with the other commodities you spoke of. What you claim is out of context with what this article is talking about.

            There will be war and as matter of a fact – haven’t you heard – there already is.

            The main reason for the fall of the price of oil is to attack Russia which refuses to be a part of the bankster NWO. Look for Putin to die soon – maybe of cancer or from a snipers bullet – there is even a recent movie with that same scenario.

          • alan

            I agree. I really think this is all about Russia and BRICS. Oil consumption has been down for years, not just last month.

            Russia needs to do a CIA style operation and get an Arab spring in Saudi Arabia. That would fix the price problem. However that would suck for the US consumer.

            I think with lower gas prices the Merican people really don’t care who is getting screwed over as long as its cheap to fill up.
            Kind of look the other way.

          • Lennie Pike

            I didn’t understand much of that. The oil price began falling less than one year ago. It was not falling two or more years ago along with copper, corn, cotton or what ever other commodities price was falling.

            And thanks for using “Merican” while agreeing with my comment – that ought to cause anyone who is not well informed to think I am an uninformed idiot – or was that your intention?

            Russia has not attacked anyone, so I doubt they will attack Saudi Arabia in any way.

          • Creedon

            Thanks for the important points

    • Coffeedrinker

      I also agree that it is because of economic depression; fewer people have fewer dollars to spend.

      Wouldn’t you think that this would be a good time (with cheap fuel) to expand the economy (start up a business)?

      No. Why would you spend investment money on a business if you knew few could afford to buy your products once you opened for business?

      It is looking more and more like the days of the 1920s and 1930s except we have many more dollars (worth much less) in fewer hands.

    • gfmucci

      If it was not a “price war” production would have been cut to keep prices up.

      • Gay Veteran

        unless you want to maintain your market share and maybe destroy some of your weaker competitors

  • ORANGEDRINK

    Look up freescale semiconductor/ kinese k102 patent, jacob rothschild, George Bush Sr. Carlyle group/ Iran contra, Iran vs Israel/ Dubai, Russia economic sanctions, downed Malaysian/ airasia flights. Put the pieces together and you will gather a disgusting picture of greed and treason at the highest level.
    If you are not seeing that all clues are leading to a New world order then you live a blissfully ignorant life that will ask why when it is too late. Good luck waiting for new developments from our “leaders”

  • Priszilla

    This becomes just another crystal ball gazing site for stock gamblers.

    • Ian Beattie

      If they’re still gambling in the stock market I don’t think they like to read sites like these. It brings too much reality into the equation. Like confronting a drug dealer about his drug problem. Denial is the hardest part of any addiction. Money addictions included…Happy New Year!

  • alan

    In my small brain,… Prices drop, OPEC gets together and agrees to reduce production, soon prices go back up. They would be pumping less oil but the price would be higher some what balancing out.

    Apparently all the storage tanks and ships are full. If demand is way down then where are you putting all the oil?
    World production is 84 million barrels a day, that’s a lot of oil to put somewhere. A super tanker can hold 2 million barrels.

    Now if a lot of equipment sits idle for a long time that’s bad too. Lots of scrap metal going to Red China.

    I think this will be a short term event, either the target is Russia and Iran. Or the target is our oil industry and petrodollar.

    Someone is going to yell uncle eventually. I can only hope its the bankers, I want those crooks flushed out in the open.

  • John Pallyswine

    By1973, the US peso was already becoming so worthless, the Saudis had to increase the price

  • WK

    Oil was a concurrent leading indicator in 2008, but the trouble was brewing in 2008 before the summer with the popping of the subprime housing bubble.

    Oil could play a more important role in 2015 as a leading indicator of banking abuses. It is egregious that banks are still allowed to sell puts on commodities with FDIC insured entities.

    The Saudis are stressing market share this time unlike 2008. IF they continue to promote market share as their guiding production principle, oil will fall until the shale industry stops developing. The equilibirium will be coming soon, when producers will shut down instead of marketing cheap oil, or drilling rigs with this lower rate of return.

    If the Saudis begin to harm the US economically with all this, they can be regime changed out of existence. There is precedent in history for strong nations coveting natural resources of weaker nations.

    • chris

      Your last paragraph is wrong. Saudi Arabia and the USA are joined hip to hip. They would never have brought down the price without USA agreement.

      • WK

        Normally I would say you are right. But if you weigh out the unemployment aspects, it could be seen differently. Interesting that Texas and North Dakota could slide into recession because of this, is this a way Obama hurts the GOP? Perhaps he is that smart to make all these calculations before it becomes reality/

        • Our two parties are also artificial constructs. Obama is not trying to harm the GOP; indeed they are valuable coalition allies in everything that matters: mortgaging our government to banks, the private debt-backed monetary system, Wall Street ownership of large enterprise rather than direct worker ownership, foreign wars, economic imperialism, etc.

  • chris

    I think you’ve pretty much got the plot. Saudi Arabia and the USA have conspired to bring down the price of oil to take down Russia and its allies such as Iran, Syria and Venezuela in part because of Russias growing opposition to the petrodollar and also because of Russian support for Syria and Iran. The US shale oil producers were either useful idiots in producing the glut of oil or they are simply expendable for the greater prize of bringing down Russia and the others. However what remains to be seen is how China will react to Russia going down and frankly i think it’ll do all it can to support Russia so the whole exercise will either will either crash the global economy or cause global war, or both.

    • tacoma

      Russia cannot be ‘brought down’ anymore the USA can be. What got hit is its weak currency the ruble. Because it is subject to open trading. With a weakened currency Russia will see expensive imports. Russia will proceed to respond and fix the situation as all countries are doing same. Longer term, Russia must be able to export beyond oil/gas in order to be a first world state.

  • chilller

    I’d like to know where Marin Katusa gets his information and what it is based on. I believe the shale folks will get hammered in this war as they are the most fragile players in the game. Ensign Energy Services out of Bakersfield announced a 700 head layoff in their operations. Hiring in the Bakken region has fallen way off too. More of these field support services companies will follow.

    • bmr22

      Talking with a guy at our gym the other day, he had been working in the North Dakota fields 3 weeks up there 1 week back home to Virginia. Well he is now laid off he is going up this week to bring drive his truck home. Game over

  • XSANDIEGOCA

    Superbly written article, Michael. Keep up the good work. Happy New Year!

  • DJohn1

    So we pay half for gasoline for a while. The banks all crash because they are no longer able to leech enough money from us.
    Russian Economy goes down the tubes as well. All because we are paying half for our gasoline.
    Well I can see all of the above doing something to stop it.
    Since they appear to own the politicians in D.C. I can see the President putting an import tax on the gasoline to bring the price back up. The President then pays off some of the massive debt owed to everyone.
    What I see happening is somewhere there will be a new Pearl Harbor. Then the entire country goes to war with the people that have caused it.
    The question in my mind is where will this occur?
    I think I would have liked to be some small critter listening in on the meeting this year of all the powerful people at that meeting. But then I would have to be able to understand different languages being spoken.
    Of course it is just a coincidence that the Royal Family of Saudi Arabia is safe in a neutral country. Because when the SHTF, we in America will not be the only ones paying the price.

    • Mike Smithy

      You raise an interesting point. If our politicians were not in collusion with Saudi Arabia, why wouldn’t they impose a temporary/interim tariff on oil imports in an effort to protect domestic producers and shore up the exposure for junk bonds? The muppets are already conditioned to pay $3-$4 for a gallon of gas.

    • tacoma

      You know, which country in the world has a national debt of $17 (or is it $18 now) trillion, piling more than $1 trillion per year? Unwilling to balance its book, or even stop the debt growth. But perfectly willing to spend $750 billion per year on the military, ten times bigger than the rest of the world combined! A country like this is insanely reckless. A country like this is spending away its reserve currency power guaranteeing a dire life for its younger generations. A country like this will continue to start wars of all kinds to sustain the unsustainable, we are all witnessing today. And this is why a country like this will absolutely sustain a huge military – it knows this is the only force it has to back up its recklessness.

  • Mondobeyondo

    We’re in Trouble.
    With a capital T… oh, you know the drill by now.

    What few people are realizing, is that the U.S. has been developing its shale oil industry (fracking, etc) while the price of oil was high. This HAD been a promising development It would have led to a tremendous amount of domestic jobs. But with OPEC lowering their prices, and with low oil prices in general, it’s not profitable for American oil companies to pursue the shale oil road, at least not in the short term.

    Oh well. We had our opportunity.

    And now, it’s back to… more football!! Who’s playing in the Toilet Bowl this year? It better not be the Alabama Crimson Tide… LOL!

  • Isaac111

    Not to worry patriots….. The New World Order has met it’s Waterloo. No joke. Google this for your proof…. Wellaware1.

  • Mondobeyondo

    Who wins, and who loses? That’s what you ultimately have to look at. And from a global viewpoint, not from a Western or U.S. viewpoint. The U.S. is not the world. There are lots of jihadists out there who would be glad to remind you of that.

    The global oil plunge will hurt the little oil producing nations (think Venezuela, Mexico, etc) the most. The big fish – Saudi Arabia, Iran, Iraq, etc – will it hurt them? Remember, they are the ones who control this game. The Golden Rule? He who has the gold makes the rules.

  • K

    You do not understand. With the help of D.C., the Saudi government will lower the price of oil, until shale is unprofitable. Once there is no profit, it will all go away.

  • chris

    Engineered collapse as a prelude to bring in the new financial system?

  • Scott

    I’ve read that improved technology to retrieve previously unrecoverable shale oil and extract the oil cheaper is coming so in the long run the Arabs are fighting a losing battle.

  • Georgiaboy61

    Re: “Who is to blame for the staggering collapse of the price of oil? Is it the Saudis? Is it the United States? Are Saudi Arabia and the U.S. government working together to hurt Russia?”

    The Saudis are using oil as a weapon – as they have so many times before with their colleagues in OPEC. Bourgeoning North American fossil fuel development represents a direct and existential threat to Saudi energy hegemony and profitability; the Saudi oil minister admitted as much in an interview last year. The United States and Canada cannot be allowed to gain energy independence from the OPEC nations, as that would spell the end of one of one of OPEC’s most-profitable markets and also the possible end of the petrodollar arrangement OPEC has had with the U.S. since the mid-1970s.

    The Saudis are also attacking Russia – one of OPEC’s chief competitors – for many of the same reasons. The Putin government has sought to form a new cartel of nations whose reserve currency would be something other than the USD, and Russian energy projects threaten competing ventures by the Saudis and their allies in S.E. Asia and the Middle East.
    The western alliance is interested in the Ukraine and Syria not because of human rights and similar concerns, but because of the importance of both regions to the regional and world energy market.

    OPEC will seek to depress North American energy prices long-enough to drive U.S.-Canadian companies to cut/abandon production in fields which operate on slim profit margins. The same effect is sought in Russian firms as well.

    Putin and Russia are being targeting not only because of competition from firms within the Russian alliance, but because Putin has had the temerity to challenge the petrodollar system. This the western financial/political elites and their allies cannot allow.

  • Mike Smithy

    What is your point and what does it have to do with our discussion about oil?

  • velisetremis

    The cause of the oil price collapse was triggered by three factors;
    1. Increasing production like fracking
    2. A slowing demand as the world economy cools
    3. Libyan production that has been out for 2-3 years coming back online rapidly in the spring of 2014!
    It’s not rocket science!

  • goldminer

    Well if all this is to punish Russia …Why has Russia announced that they will increase production.. Russia is the largest oil producer on earth. What do you think will happen to our economy if they flood the market with cheap oil. They can afford to take an economic hit for a few years…………..Can the US?
    LOL! Were caught in our own trap.

  • Priszilla

    The only way out is increasing efficiency.
    If you don’t need that extra electricity you don’t need to produce it.
    Reduce waste. If you don’t need to carry all that rubbish around you save a lot of fuel you don’t need to buy or produce.
    If your house survives the weather you don’t need to replace it and the contents every other year.

    Be more thoughtful when buying anything.

  • Priszilla

    The oil price hike from $28 to over $80 contributed to the sub prime crisis of 2007 and the crash of 2008.
    The sub prime issue was caused however by too low wages and salaries, combined with too high expectations of lifestyle.

    Another contributing factor was the opening of China. The crash of the eastern bloc. Both things America worked very hard for.

    The new enemy is ISIS. They finance themselves with oil. Reduce the dependency on oil and you can dry them out.
    Sell the renewable energy technology also to poor oil customers and all island states.
    China is very busy building wind farms in the mongolian wind swept steppe.

    • Reurbanization will reduce the need for Saudi oil completely, but may have to wait a little bit because the petrodollar is run on the US’s continued sending of money abroad to control inflation at home. Once a new monetary system is in place reurbanization can begin. Suburbs should be consolidated into towns connected to city centers by public transit. Auto ownership should fall to about 20% and ride-share services should be made available to those who find the need to use automobiles.

    • K2

      If you are a dude, why dont you use a dude name? :)

      • Priszilla

        Does K2 relate to K9?

        • K2

          I was not trying to pull your leg if you know what i mean.

  • Lennie Pike

    Afghanistan, Iraq, Egypt (re-secured), Libya, Yemen, etc. now working on Syria (second time – different reason) Russia, Venezuela, and now beginning with North Korea. Notice a pattern here? Last on the list of those not willing to conform to the bankster world fascist satanic government – you! Especially you Americans with small weapons – those will need to be confiscated.
    You ignorant members of the U.S. Military who believe you are fighting for the freedom of your country should head for the southern border of the U.S., and our airports, because that is where our freedom is being lost as you conquer these foreign countries for the criminal bankster fascists that you work for. There is a total full blown invasion of your country happening right now and it is being allowed and encouraged by the traitors of the U.S. Constitution and American People that you think represent you in Washington D.C.. Military members of foreign countries are being allowed into the U.S. as we speak to join the thousands already here.

    Just look around at the people walking down the street these days – notice anything that is different. Oh yea, I forgot – you’re not in the U.S.. You’ll be in the Ukraine as soon as Russia shoots down another airliner probably or after they attack the U.S..

    • Gay Veteran

      “…You’ll be in the Ukraine as soon as Russia shoots down another airliner probably….”
      you mean after the CIA pulls another false flag operation? notice how nobody in the Western corporate media talks about the plane shop down in Ukraine? wonder why? if they had ACTUAL evidence to support their allegations then they would release it

  • Richard Hicks

    NEVER FORGET! Saudi Arabia and
    United Arab Emirates are the most repressive nations on this planet. Their high strung government officials are desperate. Theocracies DO NOT WORK.

    • True indeed. Saudi Arabia, for its part, only banned slavery in 1962 (nearly 100 years after the US did) and both countries’ economies are based heavily on the toil of disenfranchised migrant workers. These workers have no right to vote, no freedom of movement, and no means of obtaining genuine permanent residency or citizenship.

  • This may yet spell the collapse of the petrodollar. With fewer dollars going abroad to purchase oil, more will be retained in the US and as a consequence non-oil inflation will pick up. As these dollars are recycled into corporate profits, distributions to shareholders, and then asset prices, they will collateralize ever-greater quantities of loans loans (money created out of thin air by banks) which will then be used to buy both assets and real goods, starting the process over again.

    In an attempt to curb the inflation our Federal Reserve will, most likely, raise interest rates, which will reduce the amounts that can be borrowed against assets. However, so long as banks can create money out of thin air the party will continue and inflation will spiral upward (more than it already has). With higher interest rates, demand for the dollar may increase on the forex markets, even as inflation rages at home.

    The only solution to this problem is stopping private banks from creating money based on debt, and returning that task to the Treasury as Constitutionally mandated

  • philbest

    I recommend the book by Phillip J. Anderson; “The Secret History of Real Estate and Banking”.

    It is the property cycle and the level of debt related to property, that is the main determinant of the severity of the downturn when it comes. This explains 2008, it explains Spain and Ireland, and it even explains the 1930’s – a fact that far too few people are aware of. The focus on stock markets and financial instruments is a massive red herring. That is not to say that they are not a problem in their own way, but volatility in them does not utterly devastate Main Street and Joe and Jane Citizen like volatility in property does.

    And a crash in the price of a major cost input commodity has numerous benefits; property is a cost input too but it is not a commodity that is consumed as rapidly as it is produced, and it involves large long term debt rather than immediate payment for quantities consumed at today’s price.

  • DaveL

    Gosh it must be about time to drag the big oil CEO’s in front of congress and grill them about a conspiracy to keep the price low isnt it? Oh, wait a minute! That only happens when prices are high doesnt it! Especially when Democrats need to score political points. They are also the fools who said we could never drill our way back to lower prices. How are those windmills working out by now?

  • Gay Veteran

    “The US probably should be more concerned with 1) containing Russian military expansionism in Eastern Europe….”

    are you high? it was the U.S. government that sponsored a neo-Nazi backed coup that overthrew the democratically elected government of Ukraine. that’s as stupid as Russia starting a coup in Mexico.

    and which military alliance is on whose borders? NATO’s on Russia’s
    which country is being encircled? Russia, AND China

    why? because the U.S. empire wants complete power, and Russia and China blocks that

    • gelliott

      Gay,

      I think you’re making a leap of faith that can’t be supported in fact. As far as I know there is nothing but allegations from Russia and its Ukrainian supporters that the US was behind the change in government in Ukraine. Likewise, I don’t know for sure that it wasn’t either. However, it seems very odd to me that if the US was actually behind the Ukrainian overthrow, why in heck is the US not supporting the current government with arms and other support? I’m more inclined to believe that the previous Ukrainian government lost the support of its people and that was the cause of the overthrow. Further, I don’t see any evidence that either the US or NATO is aggressively expanding their military presence in the world today. They are all reducing military budgets and presence. On the other hand, Russia and China have been expanding their military presence and exhibiting aggressive behaviors to some of their neighbors. So, given what I see going on, I think your assumption that the US is the bad guy in this case is way off base.

      • Gay Veteran

        “…As far as I know there is nothing but allegations from Russia and its Ukrainian supporters that the US was behind the change in government in Ukraine….”

        wow, you didn’t hear the recording of the conversation between Victoria Nuland (Assistant Secretary of State for European and Eurasian Affairs at the United States Department of State) and our ambassador to Ukraine? The one where she said “F the EU” and then said who the U.S. was trying to impose as prime minister of Ukraine? or her speech at the National Press Club about Ukraine?

        “…However, it seems very odd to me that if the US was actually behind the Ukrainian overthrow, why in heck is the US not supporting the current government with arms and other support?….”

        WHERE have you been??? The Ukraine Freedom Support Act of 2014, which not only expands Russian sanctions but far more impotantly, provides “lethal assistance to Ukraine’s military”. Congress appropriated $350,000,000.
        jeez, just Google U.S. support for Ukraine.

        “…I’m more inclined to believe that the previous Ukrainian government lost the support of its people and th at was the cause of the overthrow….”

        first part true, but our fingerprints are all over the coup

        “…I don’t see any evidence that either the US or NATO is aggressively expanding their military presence in the world today. They are all reducing military budgets and presence….”

        WHERE have you been??? The U.S. wants Ukraine and Georgia in NATO, that would be like Mexico and Canada joining the old Warsaw Pact. More troops and equipment being sent to the borders of Russia. And China. Every hear of the “pivot to Asia”???

        “…On the other hand, Russia and China have been expanding their military presence and exhibiting aggressive behaviors to some of their neighbors. So, given what I see going on, I think your assumption that the US is the bad guy in this case is way off base.”

        hmmmmmmmmmmm, now which country is being militarily encircled?
        and aggressive behaviors? what do call overthrowing the government of a neighboring country? withdrawing from the ABM treaty?
        and don’t forget our war of aggression against Iraq and Libya and now Syria.

        what does Russia want? at a minimum it wants a neutral Ukraine.
        what do the imperial warmongers in DC want? Ukraine in NATO which would pose an existential threat to Russia

        • gelliott

          I’ve done a little more research into this issue after reading your response. I have learned a bit more, but I’m still not inclined to jump to the conclusion that the US was involved in, or primarily responsible for, overthrowing the Ukrainian government. I just can’t “connect all of the dots” to make that a rational conclusion.

          The truth is that neither you nor I really know for sure what happened, and who did what, regardless what we’ve read or heard others say. Most people are not truly objective in drawing conclusions, regardless what the facts. Likewise, many times two intelligent people can see the same facts and draw entirely different conclusions. So, I’m trying to keep an open mind as I continue to watch what goes on.

          My bottom line is that we all need to let the Ukrainian people sort this out for themselves, and keep out of it. That includes the US, Russia, and the EU. Having said that, I see nothing wrong in helping the Ukrainians defend themselves against any foreign invader, in this case Russia. To use your analogy, if Mexicans overthrew their government and aligned closely with Cuba and Russia, would you approve if the US sent tanks and troops into Mexico to claim part of their territory? I wouldn’t, unless I thought they were actually threatening us, which would be pretty dumb on their part since we have overwhelming military power. The same goes for Ukraine and Russia, I think.

          • Gay Veteran

            “…I see nothing wrong in helping the Ukrainians defend themselves against any foreign invader, in this case Russia…..”

            where is the PROOF? where are the actual photos on the ground?

            and you do understand that the neo-Nazi coup government in Kiev has murdered 1000s of Russian speaking people in eastern Ukraine?
            do a little research on the neo-Nazis that are part of the Ukrainian coup government

            “…To use your analogy, if Mexicans overthrew their government and aligned closely with Cuba and Russia, would you approve if the US sent tanks and troops into Mexico to claim part of their territory?….”

            and that is precisely what would happen, because no country would tolerate a threat right on its borders

          • gelliott

            Where’s the proof? Didn’t Russia just annex the Crimea through military takeover? Wasn’t it the Russian military that just shot down a Malaysian commercial airline over Ukraine sovereign territory?

            I’ve read reports that there are neo-Nazis involved in the new Ukraine government, and I’ve also read reports that this charge is over done. Apparently, there are some, but they aren’t in charge of the government. Just depends on who you choose to believe right now.

          • Gay Veteran

            “Where’s the proof? Didn’t Russia just annex the Crimea through military takeover?….”
            The people of Crimea voted to join Russia (and btw, Crimea has been part of Russia longer than America has been a nation). But I guess only when the vote is what DC wants is it given our approval.
            “…Wasn’t it the Russian military that just shot down a Malaysian commercial airline over Ukraine sovereign territory?….”
            WHERE’S THE PROOF?????????

            “…I’ve read reports that there are neo-Nazis involved in the new Ukraine government, and I’ve also read reports that this charge is over done. Apparently, there are some, but they aren’t in charge of the government. Just depends on who you choose to believe right now.”
            yeah, nothing like a few neo-Nazis in your government.

          • Gay Veteran

            an excellent place for an analysis of Ukraine is Dr. Paul Craig Roberts’ website, and Gerald Celente’s Trends Journal.
            and after our war of aggression against Iraq, the U.S. government does NOT deserve the benefit of the doubt

          • gelliott

            I guess it depends on your point of view whether we waged a war of aggression against Iraq or not. We certainly went in this time to overthrow Saddam Hussein, and capture any weapons of mass destruction that they may have had. We accomplished those goals. We did not take or control their resources, and we did not select or control the political leaders that they chose in popular elections. We returned control of the country back over to the Iraqis as soon as we could. Also, I believe we’ve “invested” a lot of money trying to help Iraq get back on its feet to function as an independent country. Yeah, I wish we hadn’t felt the need to do what we did either, but under the circumstances at the time, most people in this country agreed with the policy.

          • Gay Veteran

            “guess it depends on your point of view whether we waged a war of aggression against Iraq or not…..”
            NO, it does not depend on your point of view. That’s like saying whether water boarding is torture depends on your point of view.
            “…Yeah, I wish we hadn’t felt the need to do what we did either, but under the circumstances at the time, most people in this country agreed with the policy.”
            a war of aggression does not depend whether most people agree with it

          • gelliott

            Oh I get it. The US waged a “war of aggression” against Saddam Hussein to protect itself from terrorist acts, but Russia’s annexation of the Crimea was just their right. I think I see where you are coming from…….

          • Gay Veteran

            “…The US waged a “war of aggression” against Saddam Hussein to protect itself from terrorist acts….”

            WHAT terrorist acts? 9/11 was committed by Saudi nationals, and some think it was aided by the Saudi government.

            Do you know how Crimea ended up in Ukraine?

            btw, where do you get your information? the corporate media? pressitutes spreading government propaganda

  • Sandbagger

    Stock up while gas, etc. is on sale, my friends.

  • Sandbagger

    Hum…
    If the dollar is the world’s reserve currency and it falls because of oil prices, what will replace it? Not another currency based in oil. Not another currency based in production.

    Ahh…
    A currency based in the agreed upon standard. G-O-L-D.

    Unless the rumor is true about our universities housing gold reserves (Ft. Knox=empty), we who reside in the good ol’ U S of A are about to experience the “Global Currency Reset” kick in the pants.

    Stock up, my friends. And PRAY.

  • Dave

    Or it could be what the Saudi oil minister said outright; they want their market share back all other’s be damned. You know; the ‘free market’ at work…..

    • WK

      The Saudis are pretty weak militarily, and can be regime changed out, whether it be with our proxies or Russia’s. This is all much bigger than that.

  • larrythelogger

    Demand is the ONLY thing of significance behind the “Oil War.” The one thing about conservatives that drives me nuts is their utter lack of economic understanding. The world’s demand for oil is down. THAT is why the price of oil is down. Good grief, it’s econ 101’s very first lesson; the supply and demand curve. If demand goes down, and if supply stays the same (or increases), price goes down. It’s not that hard folks. The Saudi’s have almost nothing to do with it. Oil is their ONLY income. They HAVE to sell at a lower price or lose market share and HAVE to produce the amounts they are producing at lower prices in order to sell oil to pay their bills.

    Now, the question that needs to be asked is, if the economy is recovering, why is the demand for oil dropping like a rock when energy is needed in a recovery? For those of you in Rio Linda, it’s because there is no recovery. BLS numbers are fake. The huge drop in energy demand proves it economically, regardless of the MSM and the president’s happy talk. Next question, why are the numbers being faked?

  • ob_one1963

    I really don’t buy into this at all. Where there is a market, there is production. There are known gold deposits around the world, but even with the price at $1200 oz, mining and extracting it is cost prohibitive. We are already seeing the effect of the price of oil dropping on Bakken and other fracking sites, witnessing the shutdown of certain prime wells. The Saudis are a part of OPEC. If the other countries were that worried about price, they would cut production which would see a rise in price as demand would begin to outpace supply. There is also the common thought that the Saudis are always out to get the United States. Most of the Saudi empires wealth is in gold and US investments. They won’t toy with that because the article explains it plainly. There is a disenchanted underclass in SA right now. So would the Saudis risk collapsing their own economy at risk of teeing them off and possibly starting another revolution? There are enough players in the region who would be happier than all get out to give revolutionaries in the country weapons.

  • GSOB

    This means tremendous joy to you, I know, even though you are temporarily harassed by all kinds of trials and temptations.

    This is no accident—it happens to prove your faith, which is infinitely more valuable than gold and gold, as you know, even though it is ultimately perishable, must be purified by fire.

    This proving of your faith is planned to bring you praise and honour and glory in the day when Jesus Christ reveals himself. And though you have never seen him, yet I know that you love him.

    At present you trust him without being able to see him and even now he brings you a joy that words cannot express and which has in it a hint of the glories of Heaven; and all the time you are receiving the result of your faith in him—the salvation of your own souls.

  • GSOB

    The presence of anxiety means the absence of humility.

    Having dispensed with God and exalted ourselves, we are left to ourselves to fill in the blanks.

    Our hearts are restless and will never find rest util we rest in God.

    Entertainment to the excess, to drive away the blues in an attempt to fill in the blanks.

    We are not called to cast all our trouble on Him, but all the anxiety the troubles cause us.

    God is able to deal with the anxiety. Why can we be so sure of this?

    We can do this because we His personal concern. To Him, it is a care concerning you. He cares for believers.

    This morning, if your are in Christ, you are person of His personnal concern.

    Cast all your anxiety on Him in prayer.

    Anything else may deal with symtoms, but only in God can you have this experience of no anxiety.

  • Peter

    What really amazes me of all speculations that people think fossil oil should be worth anything since free overunity energy invented and demonstrated by Tesla was suppressed by the Illuminati to create a false sense of economy based on global destructive and polluting energy. My god people you’re still limited to fossil energy by false illusions. When are you going to awake? Love and light blessings

  • blackciti_fo5

    I watched a video where they said the reason for the oil price decline is from the US producing its own oil. I don’t know if that’s true or not. I am also not 100% on understanding our energy use with Saudi but this article made more sense than that video I watched. I have read other articles that also agree with this one. If anyone can give me a better understanding it will be greatly appreciated.

  • Philip Arlington

    There is no oil war. Prices are going down because supply is up. If the Saudis or whoever cut supply as a result that would be manipulation. NOT cutting supply is non-manipulation.

    I do wish you would stop peddling conspiracy theories and accept that the world is mostly a muddle with no-one in charge, as doing so undermines the legitimate points you make.

  • John

    Just make sure your lamp is full of it !

  • Oil at about $100 a barrel is a “fair price for all,” said Al-Naimi in May of 2014, who was attending ministerial meetings on clean energy in South Korea’s capital. In 2012, Al-Naimi indicated that there was an oversupply and no buyers, yet the price of oil did not fall because it wasn’t in the national interest of the US. Remember also the speeches of how great our oil and natural gas industry is in terms of making the US self-sufficient. Why don’t we hear of these speeches today? In the iconic movie Scarface, you had one scene when the cartel was looking at each other, feeling uneasy and uncomfortable that their hypocrisy had been exposed. I think many historians will gather their thoughts on this one and start piecing together a real picture that Van Gogh painted. When MEES (Middle East Economic Survey) interviewed Al-Naimi on December 21, Al-Naimi really had to clarify his thoughts. Or perhaps better yet, back-track his explanations. “No, no. I did not have a dialogue with him at all. The Venezuelan oil minister asked me if I had a comment, so I said we wanted to hear from countries outside Opec. He asked the Mexican minister, who mentioned Mexico’s problems, which we understand. He asked the Russian minister, who was also accompanied by the head of Rosneft Igor Sechin. He provided information about the Russian oil industry. In the end, he said he could not make any reductions because their wells are old, and if they reduce, the wells will not come back up. The minister confirmed that Russia was not willing to cut. We said “thank you” and the meeting was over.” Ok, so now historians know that there was no dialogue between Venezuela and Russia, which is a good thing for Saudi Arabia. When asked about Russian oil supply decreasing by 500,000 barrels per day due to low oil prices, Al-Naimi responded by stating, “I cannot say. That is an unknown, because I do not know all Russia’s fields. The only area I know is West Siberian fields, but I do not know their other fields”. Moscow is unable to shut down Siberian oil fields due to the difficulty associated with shutting them down in the winter. However, this doesn’t outline the status of the other oil fields in Russia because of no negotiations or dialogue with the Russian oil minister. Naimi further indicated that it’s not within the interest of Opec to cut prices at this time. Remember, this guy is an oil minister and seems to go against Abdullah of Saudi Arabia’s official mandate of providing stable prices and not bankrupting nations. So now we have Sergey Lavrov indicating that Moscow had no intention to impose the term “Federation” on Kiev. Barack Obama believes that Russia is a threat to the world. Russian Prime Minister Dmitry Medvedev’s stated “This is some form of aberration of the brain”. He further added that Russia has not closed any doors. “We want to communicate constructively and amicably with all civilized nations”. Even though oil was used as a weapon against Russia and Iran, this has more to do with ambition, legacy and how the world views an administration. The gamble was to attack the US oil industry. If that is a legacy that history adheres to, they need to get the facts right.

  • huh ?

    An article in my local paper last week or so said that gas prices were on the rise again, but the pumps are continuing to go down for some reason.

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