The oil market is complex and so many other parameters either feed into it or depend on it, quite impossible to predict in the short to medium term. There is far less storage capacity than consumption, so gluts or acute, perceived shortages are both easy to emerge or be created. As we have seen, it is volatile, with wide swings up or down. May as well spin the roulette wheel. Which is why there are so many speculators. Why do real work when you can manipulate and cream off 'just a teeny weeny bit' off the top? Would be more stable if the market were just consumers and producers. LONG term, there are more parameters that are predictable. The most important of which is that the world is moving away from fossil fuels faster than most anticipated or predicted. The long term price of oil will be set by the cost of the alternatives per unit of equivalent energy. Solar, for instance, has fallen fast in terms of cost, if not convenience or reliability. Saudis once rode camels. They will do so again. Just hope I live long enough to hear it. Will never see it as will never actually go there...Not ONE mention anywhere of the fact that the world economy is in complete free fall. Nobody is buying oil. Demand has crashed through the floor because the entire world economy is crap and has been crap for the entire 8 years of the Obama Administration. Of course, its not really his fault because this ship's course was set long before he became president, but when he got in, they had already disconnected the controls over the economy's throttle on high and he had no way to stop it, so, he piled on. But we've never had a recover since the 2008 crash. The economy world wide has been in a hidden depression papered over with fiat currency by irresponsible central banks because if they allowed everyone to see how bad things actually were, it would make the politicians look like idiots.... of course, they ARE idiots, but they don't want people to know that or they won't vote for them. Oil prices are plummeting because the fake economy could only prop up the fake recover for so long before the bottom fell out. I wouldn't be surprised at all to see Brent Crude go below 15 dollars a barrel this year. Maybe even below 10 dollars a barrel.
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, February 9, 2016
The oil market is complex and so many other parameters either feed into it or depend on it, quite impossible to predict in the short to medium term. There is far less storage capacity than consumption, so gluts or acute, perceived shortages are both easy to emerge or be created. As we have seen, it is volatile, with wide swings up or down. May as well spin the roulette wheel. Which is why there are so many speculators. Why do real work when you can manipulate and cream off 'just a teeny weeny bit' off the top? Would be more stable if the market were just consumers and producers. LONG term, there are more parameters that are predictable. The most important of which is that the world is moving away from fossil fuels faster than most anticipated or predicted. The long term price of oil will be set by the cost of the alternatives per unit of equivalent energy. Solar, for instance, has fallen fast in terms of cost, if not convenience or reliability. Saudis once rode camels. They will do so again. Just hope I live long enough to hear it. Will never see it as will never actually go there...Not ONE mention anywhere of the fact that the world economy is in complete free fall. Nobody is buying oil. Demand has crashed through the floor because the entire world economy is crap and has been crap for the entire 8 years of the Obama Administration. Of course, its not really his fault because this ship's course was set long before he became president, but when he got in, they had already disconnected the controls over the economy's throttle on high and he had no way to stop it, so, he piled on. But we've never had a recover since the 2008 crash. The economy world wide has been in a hidden depression papered over with fiat currency by irresponsible central banks because if they allowed everyone to see how bad things actually were, it would make the politicians look like idiots.... of course, they ARE idiots, but they don't want people to know that or they won't vote for them. Oil prices are plummeting because the fake economy could only prop up the fake recover for so long before the bottom fell out. I wouldn't be surprised at all to see Brent Crude go below 15 dollars a barrel this year. Maybe even below 10 dollars a barrel.
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