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Why The Price Of Oil Is More Likely To Fall To 20 Rather Than Rise To 80

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Oil - Public DomainThis is just the beginning of the oil crisis.  Over the past couple of weeks, the price of U.S. oil has rallied back above 50 dollars a barrel.  In fact, as I write this, it is sitting at $52.93.  But this rally will not last.  In fact, analysts at the big banks are warning that we could soon see U.S. oil hit the $20 mark.  The reason for this is that the production of oil globally is still way above the current level of demand.  Things have gotten so bad that millions of barrels of oil are being stored at sea as companies wait for the price of oil to go back up.  But the price is not going to go back up any time soon.  Even though rigs are being shut down in the United States at the fastest pace since the last financial crisis, oil production continues to go up.  In fact, last week more oil was produced in the U.S. than at any time since the 1970s.  This is really bad news for the economy, because the price of oil is already at a catastrophically low level for the global financial system.  If the price of oil stays at this level for the rest of the year, we are going to see a whole bunch of energy companies fail, billions of dollars of debt issued by energy companies could go bad, and trillions of dollars of derivatives related to the energy industry could implode.  In other words, this is a recipe for a financial meltdown, and the longer the price of oil stays at this level (or lower), the more damage it is going to do.

The way things stand, there is simply just way too much oil sitting out there.  And anyone that has taken Economics 101 knows that when supply far exceeds demand, prices go down

Oil prices have gotten crushed for the last six months. The extent to which that was caused by an excess of supply or by a slowdown in demand has big implications for where prices will head next. People wishing for a big rebound may not want to read farther.

Goldman Sachs released an intriguing analysis on Wednesday that shows what many already suspected: The big culprit in the oil crash has been an abundance of oil flooding the market. A massive supply shock in the second half of last year accounted for most of the decline. In December and January, slowing demand contributed to the continued sell-off.

At this point so much oil has already been stored up that companies are running out of places to put in all.  Just consider the words of Goldman Sachs executive Gary Cohn

“I think the oil market is trying to figure out an equilibrium price. The danger here, as we try and find an equilibrium price, at some point we may end up in a situation where storage capacity gets very, very limited. We may have too much physical oil for the available storage in certain locations. And it may be a locational issue.”

“And you may just see lots of oil in certain locations around the world where oil will have to price to such a cheap discount vis-a-vis the forward price that you make second tier, and third tier and fourth tier storage available.”

[…] “You could see the price fall relatively quickly to make that storage work in the market.”

The market for oil has fundamentally changed, and that means that the price of oil is not going to go back to where it used to be.  In fact, Goldman Sachs economist Sven Jari Stehn says that we are probably heading for permanently lower prices

The big take-away: “[T]he decline in oil has been driven by an oversupplied global oil market,” wrote Goldman economist Sven Jari Stehn. As a result, “the new equilibrium price of oil will likely be much lower than over the past decade.”

So how low could prices ultimately go?

As I mentioned above, some analysts are throwing around $20 as a target number

The recent surge in oil prices is just a “head-fake,” and oil as cheap as $20 a barrel may soon be on the way, Citigroup said in a report on Monday as it lowered its forecast for crude.

Despite global declines in spending that have driven up oil prices in recent weeks, oil production in the U.S. is still rising, wrote Edward Morse, Citigroup’s global head of commodity research. Brazil and Russia are pumping oil at record levels, and Saudi Arabia, Iraq and Iran have been fighting to maintain their market share by cutting prices to Asia. The market is oversupplied, and storage tanks are topping out.

A pullback in production isn’t likely until the third quarter, Morse said. In the meantime, West Texas Intermediate Crude, which currently trades at around $52 a barrel, could fall to the $20 range “for a while,” according to the report.

Keep in mind that the price of oil is already low enough to be a total nightmare for the global financial system if it stays here for the rest of 2015.

If we go down to $20 and stay there, a global financial meltdown is virtually guaranteed.

Meanwhile, the “fracking boom” in the United States that generated so many jobs, so much investment and so much economic activity is now turning into a “fracking bust”

The fracking-for-oil boom started in 2005, collapsed by 60% during the Financial Crisis when money ran out, but got going in earnest after the Fed had begun spreading its newly created money around the land. From the trough in May 2009 to its peak in October 2014, rigs drilling for oil soared from 180 to 1,609: multiplied by a factor of 9 in five years! And oil production soared, to reach 9.2 million barrels a day in January.

It was a great run, but now it is over.

In the months ahead, the trickle of good paying oil industry jobs that are being lost right now is going to turn into a flood.

And this boom was funded with lots and lots of really cheap money from Wall Street.  I like how Wolf Richter described this in a recent article

That’s what real booms look like. They’re fed by limitless low-cost money – exuberant investors that buy the riskiest IPOs, junk bonds, leveraged loans, and CLOs usually indirectly without knowing it via their bond funds, stock funds, leveraged-loan funds, by being part of a public pension system that invests in private equity firms that invest in the boom…. You get the idea.

As all of this bad paper unwinds, a lot of people are going to lose an extraordinary amount of money.

Don’t get caught with your pants down.  You will want your money to be well away from the energy industry long before this thing collapses.

And of course in so many ways what we are facing right now if very reminiscent of 2008.  So many of the same patterns that have played out just prior to previous financial crashes are happening once again.  Right now, oil rigs are shutting down at a pace that is almost unprecedented.  The only time in recent memory that we have seen anything like this was just before the financial crisis in the fall of 2008.  Here is more from Wolf Richter

In the latest reporting week, drillers idled another 84 rigs, the second biggest weekly cut ever, after idling 83 and 94 rigs in the two prior weeks. Only 1056 rigs are still drilling for oil, down 443 for the seven reporting weeks so far this year and down 553 – or 34%! – from the peak in October.

Never before has the rig count plunged this fast this far:

Fracking Bust

What if the fracking bust, on a percentage basis, does what it did during the Financial Crisis when the oil rig count collapsed by 60% from peak to trough? It would take the rig count down to 642!

But even though rigs are shutting down like crazy, U.S. production of oil has continued to rise

Rig counts have long been used to help predict future oil and gas production. In the past week drillers idled 98 rigs, marking the 10th consecutive decline. The total U.S. rig count is down 30 percent since October, an unprecedented retreat. The theory goes that when oil rigs decline, fewer wells are drilled, less new oil is discovered, and oil production slows.

But production isn’t slowing yet. In fact, last week the U.S. pumped more crude than at any time since the 1970s. “The headline U.S. oil rig count offers little insight into the outlook for U.S. oil production growth,” Goldman Sachs analyst Damien Courvalin wrote in a Feb. 10 report.

Look, it should be obvious to anyone with even a basic knowledge of economics that the stage is being set for a massive financial meltdown.

This is just the kind of thing that can plunge us into a deflationary depression.  And when you combine this with the ongoing problems in Europe and in Asia, it is easy to see that a “perfect storm” is brewing on the horizon.

Sadly, a lot of people out there will choose not to believe until the day the crisis arrives.

By then, it will be too late to do anything about it.


  • JT

    I take anything that a banker says with a huge grain of salt. Your quoting Goldman Sucks analysts? Seriously? They are probably doing exactly the opposite of what they are saying. In other words when they talk negatively about oil, they are most likely buying. When the speak positively about oil they are most likely selling.
    Personally, I see oil in rally mode for at least another 3-4 weeks before we see a re-test of the lows at $45. And if Goldman continues with the negative talk then I know they are supporting the price with more buying; as soon as they start talking positive, I will sell.

    • krinks

      Right. They all insult the very notion of owning gold while at the very top they are buying and hoarding as much gold as they can.

    • seth datta

      Global economy – SCAM
      Healthcare – SCAM
      Property tax – SCAM
      Utilities – SCAM
      Global warming – SCAM
      Overpopulation – SCAM (Oh yes it is, as in the 1980s, the UN said the world could accommodate 33 billion people at a US standard of living at that time. Apparently folk like Bill Gates say CO2 leads to global warming, so since people lead to CO2, we need to reduce western populations to save the planet. Which is racist against caucasians and i’m not white)

      oxygen tax: for the useless eaters.

      when half of the world’s wealth is owned by 80 people, its because THEY ARE THE PARASITIC THIEVES THAT NEED TO GO.

      • Crone

        YES! Everything we have ever known was manufactured by government PR firms! Now that people are catching on they will pull the Internet switch or just allow business, ect…Can’t have the natives restless.Seth, have you ever read the Overton Window by Glen Beck? No wonder they want this guy gone..
        We are nothing more than a huge Truman Show.

        • Joethecuckleburr

          If TPTB wanted Beck gone he would be gone and not have a national audience. He’s a worthless shill that goes against more than 2,000 Architects and Engineers that are calling for a true investigation of the 911 destruction. He buys into the official lies about Sandy Hook and the Boston Marathon bombing. He serves your masters.

          • elmcqueen3

            Don’t we all “serve” our masters of which you spoke?

          • Joethecuckleburr

            Yes, we are coerced to serve the .01%, but we don’t have to revel in our service, celebrate it, and make millions by promoting lies to a gullible public. At every opportunity I try to introduce people to seeking the actual truth. Of course, with the truth being uncomfortable and not fitting their present paradigm, most people shrink from the truth. But planting seeds of truth is worthwhile. (Maybe)

          • elmcqueen3

            If we are to understand Obama and the cogs of his Democratic machinery we must first understand the following statement made by a person of intelligence who issued the following quote…”If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.”…Joseph Goebbels, Propaganda Minister, Nazified Germany 1933-1945.

      • Evil_shadow

        I dont think that people today live like they did in 80’s :P. so halve that number , due to rising standards and demands.But still, not even nearly close to their predictions…

  • Genada

    Recessions are painful but they help to wash out poor investment and put it towards more productive uses. The entire problem we have had and the reason for our crisis getting worse is because we do not allow that to happen and instead prevent the market from working.

    What is the proper price of oil? The market seems to be saying it’s lower then some can produce. Those that can not compete get wiped out, that’s how the market is suppose to work. Would it be better to raise the price of oil to a level they could compete at?

    People need to make a choice, we can either have a controlled market or a free market. Bad things happen sometimes in free markets, some people get hurt but that’s the nature of competition.

    The real problem here is not the price of oil or the people it will hurt. The real problem is that there is those that invested and made poor bets that are going to lose. They will attempt to make all of society pay for there loses. That is the problem and that’s what needs to stop. Private profit, social loses is not free market. You invest and lose, you eat the loses.

    • John Higson

      Recessions ‘did’ before we had the central banks running around saving their friends in high finance.Recessions don’t serve this purpose anymore when nobody(except the ‘little guys’ who don’t matter)is allowed to fail.No creative destruction,no clearout of the deadwood,no real capitalism(it’s fascism).Time for american civil war III.

      • buy low sell high

        did I miss civil war II?

        • alan

          yea, it wasn’t televised.

        • John Higson

          The American Revolution/War of Independence was civil war I,it was a war of (mostly) british ex-pats(or the children of ex-pats)against british soldiers.The Civil War was II,we are due for no.III……

          • jsmith

            I never looked at it that way, but I think you are right. I’m sure George and Thomas Jefferson got tired of the royalty looking down on them as second class citizens.

          • FortuneSeek3rz

            People are way too passive in America for another civil war. They are too addicted to FB, Twitter and Candy Crush to get off the couch and give a damn about something. Just forget about it.

      • alan

        I am surprised the price was allowed to drop. If no one is buying the oil the price goes down. Also the production should drop? OPEC supposedly has not reduced production, so where is all the extra oil going? After several years of over production it should be visible from orbit. Like channel stuffing cars.

        I just don’t know, every time something comes up like this you try to make sense of it and it just doesn’t add up. Its like we have half the story on everything going on.

        • Houstonian

          A lot is going into strategic petroleum reserves of China and India. But the filling up of those reserves can only go on so long.

        • Crone

          “Everything that is going on” is fake. It has always been fake and manipulated at our expense. Football, music, movies.. nothing more than fake PR games to control the brainwashed masses. Before formal “schooling” kids learned basic reading and math, while learning how to survive and thrive in the real world. Family trade, farming..then came the Gestapo tactics, FORCED EDUCATION. Now, just look at the outcome..
          It is ALL MANUFACTURED, every stinking bit of it.

    • Evil_shadow

      You know, once upon a time (24 years ago 😉 )one of prominent politicians in our country said:” dreams are allowed today, tomorrow is new day”. And it was; social rights are thing of past, regular jobs too, corruption everywhere you can imagine(or not)…Free market didnt worked back then and doesnt work today(not that we have fully free market; more like socialistic/faschistic(depends of which political party rules the parliament) ridden twisted version of free market).

  • Alwaystomorrow

    Quoted from above,
    “Look, it should be obvious to anyone with even a basic knowledge of
    economics that the stage is being set for a massive financial meltdown.
    This is just the kind of thing that can plunge us into a deflationary depression.”

    I wish someone would make up their mind, hyper inflation or deflationary depression.

    • alan

      Deflation leads to Hyper inflation, over printing to get some inflation and it saps like a rubber band and blows up.
      I’m not seeing deflation at my level, maybe at banker level.

    • chilller

      It could be that we enter into a deflationary depression first and then hyper inflation as gov meddling tries desperately to print their way out.

      • Crone

        Sorry, true “economics” don’t point to deflation. ANY rise in the interest rates will cause the start of Hyperinflation due to commodities shock. I’m looking at Sept/Oct for the floor show to start.

      • Mike Smithy

        Yep. In a last desperate attempt to pull out of the deflationary death spiral,the western central banksters are prepared to throw fiat currency out of helicopters as a “Hail Mary”. This will be the catalyst for a hyper-inflationary collapse.

  • DJohn1

    I don’t know a lot about fancy economics.
    I paid the utilities. I paid my bills. After I paid my bills I had $10 left over. I am saving that to pay the bills for February that arrive in March. Then In March, we will paying for February. It really does not look good.
    It looks like single digits all week. It looks like -4 to -10 this week with the wind chill factor.
    Might have to arrange to catch up in April or May.
    So instead of $60 set up to pay for gasoline for 2 vehicles, I will figure $50 or less. So to pay for gas for a car and a truck it will cost me about $25 a piece. That puts about 10-12 gallons in the vehicles.
    What I just described is common all throughout the East Coast of this country right now. We are on the edge of it here in Ohio.
    In the meantime, back in D.C. the EPA wishes to change the rules for alternate heating so that people cannot burn wood in wood stoves any more. Based of course on the latest scientific fraud going.
    I think when a third or more of the country is struggling to keep heat in their homes and that is with some extensive power outages, the better part of wisdom would be for the EPA to back off.
    The oil glut will resolve itself. Eventually we might even be back up to $3-$4 a gallon again. Might even be $5.
    What the government needs to do is step in and save our oil industry while they can. Because when it goes back up it is because the ulterior motive for the low prices was to destroy our ability to be independent of them.

    • alan

      This is my theory there will be a mass migration down south.

      As the economy gets worse people will move where its cheaper/warmer. First that get out, get out best!

      If you loose everything and on welfare might as well go south. Sadly we will be over run, but that’s the way it goes.

      Florida will be the new Kalifornia, All hail Stalin or Mao or Hillary, whoever…

      • DJohn1

        The South has always had migrations of people from the north, especially in the winter time.
        I remember my parents living in Clearwater. They moved South after he retired.
        There are tricks in Real Estate that if you know them can help you. Estate Sales are numerous in Florida. It is the great equivalent of an elephant burial ground for humans.
        Not quite so numerous are foreclosures.
        If I were to invest in business in Florida, funeral homes would be high on my list.
        The state motto should be God Bless Our Senile Citizens. We have a lot of them.
        Almost anything you need can be bought at a garage sale somewhere. Works here too but far less than it does in Florida.
        Mom and Dad had an electric house. The water heater was religiously turned off after the morning showers. It stayed off unless they were doing laundry or dishes. So was the furnace and AC until early afternoon in most cases.
        The real problem with Florida is the 3 or 4 months of Hellish High Temperatures in the Summer. So if you are going that far South remember you cannot live without Central Air in Florida.
        Unless it has changed there are no high paying jobs in Florida for ordinary folk. There is no respect by employers for workers as they are a dime a dozen. That includes most trades.
        If I were to live in that state, I think I would have to learn the repair trade for Central Air and Heat.
        Or figure out how to become a government employee.
        No, I wouldn’t attempt to stay retired.

        • Annette Smith

          and don’t forget the free stuff that people give away on Freecycle. go Google that and pick your area and take a look. we outfitted a kitchen and bedroom on items that people didn’t want…it’s just people helping people, and the Goodwill is a good place, too…

        • Crone

          And that about sums it up. State slogan: Party Till Your Homeless

      • Crone

        Alan. It is getting real expensive to live down here. Big time economic issues. Price of food is staggering. Rent is outrageous. Business district folded with last flood. Crime is rampant. Homelessness now includes the young. But Shhh.. don’t talk about it.
        Florida Panhandle.

    • sharonsj

      I’m in Pennsylvania, sitting at the computer, wearing four layers of sweaters because this room is unheated. I don’t know how I’m going to pay my bills. Saving a lousy $10 at the gas pump isn’t going to solve my problems. And yes, Alan, I’m also trying to figure out how to move south….

      • DJohn1

        Get help from someone quick.
        I suggest going to the local churches. In our area they have programs to help people. I am sure that Pennsylvania does also.
        The Salvation Army might be able to direct you in where you might go to get that help.
        The Lord has always blessed me over the years.
        I served an apprenticeship, got a trade, and after I got my card, the paper I worked for gave us life time jobs in trust. I was able to work at that paper for 41 years. They then gave us a half year’s pay to retire. And that was at a salary of over 40,000 a year back then. We are retired now and do not make the big wages any more.
        The problem with pensions is they do not keep up with expenses over the years.
        I am proud of the local group of churches. They are all different kinds of denominations. They also hold community dinners every week for everyone. That includes a Catholic Church, A methodist church, and two nondenominational churches.We live in Ohio. I too think it was a mistake to stay in Ohio when we retired. Should have. Could Have. Would Have. Hindsight it is always 20/20.
        I am not a great fan of the South. Even though Florida is much better suited economically for retired people that Ohio is.

      • Annette Smith

        Sharon…come to PHoenix….we have a ton of jobs and housing is available…

      • Orange Jean

        Sounds miserable, and I do understand being tempted to move south when you’re cold and miserable… but there are problems in the South (if you move to the southeast at least) you maybe ought to think about carefully before a move.

        For one thing, I’m in southern VA and right now have been snowed in all week due to what they would think is a wee bit of snow in PA (we got 5-6″) because they do NOT plow, sand or salt any of the secondary roads…. and I live in the country. Six miles before I get to a road that might have been cleared. Half of my house (living room in particular) is freezing too because it’s an older house and poorly insulated for cold except for the part of the house that was added onto more recently. Previously I lived in the Raleigh area, not bad… but they have had ice storms the likes of which I never saw in New England.

        If you’re thinking of Florida, don’t forget about hurricanes, sinkholes, alligators, mosquitoes, and snakes from hell… one of my brothers and his girlfriend (who I like a lot, old Florida family… part Seminole) have tried to get me to move down there, but between the heat and nearly unbearable humidity, the limited jobs and most with lousy pay, the crime rates in some places… well, it doesn’t appeal to me at all.

        And if you do that be prepared for the fact that Southerns (for the most part) do not like people who move down from the North…many still are living the Civil War, had family who died in it and are very resentful and act like everyone from the North is their enemy.

        Also I’ve gotten the impression from some other comments you’ve made before that you may be a liberal (correct me if I’m wrong), if that’s the case you might want to be aware a lot of people down here are very conservative… outside of DC at least. Since I’m conservative myself and have been very poor in the past, I seem to get along quite well with some of my neighbors who are from this area… we think alike in a lot of ways, but I have made no friends (in 8 years) with those who moved down from colder places. Just sayin’ …

    • Crone

      We were never independent of “them”.

  • alan

    As long as we are causing chaos in the middle east with Arab springs, fall, winter and summers the price will stay low. Yes its a poke in the eye of Russia but it helps us out. I still just can’t see it staying low for very long.

    • Crone

      Obama had dinner with Putin not so long ago. Enough said..

  • ItIsWell

    I can remember in August 2001 one month before the first big economic slowdown my family and I went to Key Largo and gas fell to .99 a gallon. I remember thinking it was below a dollar and I had never seen that before in my life. (I was 19) There was a stock crash the very next month.

    • krinks

      The First Gulf War was soon to follow and put a stop to that and fast.

      • jsmith

        We are running out of countries to invade! You think the Russians and the Chinese are going to let Obama get a heads up. I don’t think so. It’s almost embarrassing to see our moron president and our state department be outclassed by Putin!

        • elmcqueen3

          Can’t blame Putin…When he sees what we are doing around the globe he probably thinks what he is doing in Ukraine is par the course…The spoils of war can be profitable…Which is why we are in Afghanistand and Iraq…The New World Order has an agenda…We only follow it…Unknowingly.

  • autofixer

    The U.S. oil equilibrium price is supposedly around $70 – $75 per barrel. $20 per barrel sounds like a trap to me, but I don’t have an M.B.A. from an elite social club.

  • Chris Sky

    Totally disagree with this article… The oil industry has already laid off hundreds of thousands of workers, and closed record numbers of rigs and operations. Global consumption will not continue to fall, and now that the oil markets have adjusted (both production sites and price) the only thing keeping oil from going back up to “normal” levels is the huge stockpiles accumulated since OPEC refused to reduce production (as per USA’s orders to hurt Russia with low oil price and to try and keep as many consumers using US DOLLARS as long as possible.) So we may see oil dip before summer somewhere in the 40’s but you’re not going to see it in the 20 dollar range.. and by august/september it will be back upwards of 60 dollars. just my two cents.

  • muldoon55 .

    Jerimiah 10:23 reminds us that it (human governance) doesn’t belong to man who can’t even direct his own steps.
    It should be quite evident that it is greed and corruption that determine leaders ( government and financial) policies and not genuine concern for the common citizen.
    Mankind has suffered under oppressive human rule for over six thousand years now, and not one government has produced the conditions we all yearn for in which we can prosper and reach our full potential with the exception of King Solomons’ reign where success was achieved by submitting to God’s ultimate sovereign rule.
    So God’s allowance of man to decide for himself what is good and bad, without his interference, is coming to a conclusion. What we see happening on the world stage now are the birth pains of the conclusion of this corrupt Godless world and the instituting of God’s
    Kingdom rule in the hands of His son Jesus.
    Take heart and seek Him before the His day of vengeance comes on this earth

  • Rufus T Firefly

    A giant tax cut surging through the economy so we can go out and buy 15 mpg SUVs and pick up trucks, wasting our savings. Hope those unemployed oil workers like their new McJobs. I’m sure they were too stupid to save money when they were poisoning the environment by fracking

    • Crone

      Oh, the revenge of Mother Earth..or should I say Karma?

  • steve

    A long time ago, I read an editorial where the author was saying that it would be bad for the economy if the price of gas fell below $1.00 per gallon. Same reasoning as this article. Nothing happened then. The price of gas reversed its downward trend and the economy kept on ticking. The same will happen here.

  • Crone

    I believe we are in a major hidden debt crisis. I’ll explain.
    Without debt, we don’t have much..businesses depend on it. Also, without sufficient debt, the price of all sorts of commodities drop due to less demand. And, they are all connected.
    Raw materials = Energy = Finished product
    Cheap debt makes profit for business. Buys Mortgage debt peaked in 2008. Consumer debt peaked in 2008. And then they declined. ? Lehman went “bankrupt”. The Feds quickly stepped in with more debt.
    And what does all this have to do with cheap oil? THE AVAILABILITY OF CHEAP DEBT PULLS OIL HIGH ENOUGH FOR PROFIT. This in turn maintains companies of all kinds, and the jobs. 2008 was a ‘decrease in debt-outstanding problem’.
    My view is this, the spending of individual citizens is primary. How do we maintain anything without good wages? When spending fails, it ripples through the economy like a slow moving tsunami. An economic tsunami.
    Do I believe in everything that I just wrote? Absolutely not. Why? The powers that be are nothing more than a huge, mega-rich PR company. They are the Overton Window..

  • Tim

    Michael usually posts a new article on Sunday evening.

  • Horiboyable .

    I brought a V8 last September and everybody thought I was mad. Whose looking mad now 🙂

  • DJohn1

    With oil prices down this low, how does this effect any effort to put in the Canadian to US Oil Pipeline?
    I know Obama has been against the pipeline for a long time. He has basically used the Presidency to keep it from happening.
    I am saying how much advanced notice did he have that this Oil price reduction was coming? Did he know? If so, was that the motive behind the fight against the pipeline?
    If he did have advanced knowledge, how much of what is going on is illegal under the securities exchange?
    Michael talks about a Financial Meltdown with the derivatives market out there based on the repercussions of the oil price. If that is happening, then I think the Securities people definitely need to be involved.
    Or is the President and the Congress immune from prosecution in such a case? What does that say about the victims of such a crime and how they are treated vs how the lawmakers are treated?
    Is the Congress and the President going to step in and save all these institutions that are suddenly broke or are they going to let it happen? This is a heads I win, tails you lose situation.
    I think there are a lot of awkward questions need to be asked right now before anything happens to the markets.
    It is probably too late to even ask them before the markets burn.

  • sandbagger

    The U.S. is stockpiling oil for the coming war. Don’t believe the guy who said prices could be permanently low.

  • Fleendar the magnificent

    And I thought that lower oil prices were a GOOD thing for the economy as money not wasted on gas would be spent elsewhere, thus stimulating the economy?

  • elmcqueen3

    Whatever happens in the oil industry was planned that way…The falling prices for a barrel of oil is not coincidental…The New World Order is pushing for an agenda…For what purpose their agenda might be we do not know?..Whatever it might be…In the long run and scheme of things it will not be for the betterment of we the people…Perhaps we must trade more freedoms for more security which Benjamin Franklin warned us about…Only time will tell.

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