oils prices are down forever!!!!!......??????

[satchelmcqueen]

why do they even write things like this? dont they know that this recent drop is just blip on the over all radar? oil will go back up! its mostly manipulated by any and all excuses the gov and oil execs can throw at us. the pipeline is still on....smh

http://www.msn.com/en-us/news/other...s-say/ar-BBgPVu0?ocid=ansTribuneNewsService11

 

[jmdrake]

Saudi Arabia is purposefully keeping prices low. The smart money says they are doing that to kill shale oil and tar sand oil. So oil prices don't have to stay down forever. They just have to stay down long enough for investment in these projects to not make sense. It's a global game of economic chicken.

 

[William Tell]

Saudi Arabia is purposefully keeping prices low. The smart money says they are doing that to kill shale oil and tar sand oil. So oil prices don't have to stay down forever. They just have to stay down long enough for investment in these projects to not make sense. It's a global game of economic chicken.

Tariffs would make it interesting.

 

[fisharmor]

So nobody on this site is going to recognize that QE purchases stopped two months prior to oil prices going down?

On this site?

 

[enhanced_deficit]

Not forever, only until Russia is taught a lesson by Arab dictators/Zionist/ISIS types anti-Syria jihadi alliance. This is old formula from days of US/Israel/Saudi supported Afghan Jihads of 1980s that helped crack USSR / acclerated Russian aliyah.

Russian rouble suffers steepest drop in 16 years
By Alexander Winning and Vladimir Abramov
MOSCOW Tue Dec 16, 2014 9:43am EST
http://www.reuters.com/article/2014/12/16/us-russia-rouble-exchange-idUSKBN0JU0KO20141216

 

[ZENemy]

So nobody on this site is going to recognize that QE purchases stopped two months prior to oil prices going down?

On this site?

I did!

 

[muh_roads]

So nobody on this site is going to recognize that QE purchases stopped two months prior to oil prices going down?

On this site?

Fill us in. This is the police abuse forum now.

 

[AuH20]

http://atlanticsentinel.com/2014/12/american-russian-economic-war-yet-to-bend-either-side/

 

[AngryCanadian]

Not forever, only until Russia is taught a lesson by Arab dictators/Zionist/ISIS types anti-Syria jihadi alliance. This is old formula from days of US/Israel/Saudi supported Afghan Jihads of 1980s that helped crack USSR / acclerated Russian aliyah.

Russian rouble suffers steepest drop in 16 years
By Alexander Winning and Vladimir Abramov
MOSCOW Tue Dec 16, 2014 9:43am EST
http://www.reuters.com/article/2014/12/16/us-russia-rouble-exchange-idUSKBN0JU0KO20141216

Saudi Arabia seems to have forgotten the past empires and fascists tried to bring Russia with this no one successfully did. This wont bring Russia down.

 

[muh_roads]

http://atlanticsentinel.com/2014/12/american-russian-economic-war-yet-to-bend-either-side/

I could potentially see Russia & the US going at it militarily with Saudi Arabia as the battleground.

 

[AuH20]

I could potentially see Russia & the US going at it militarily with Saudi Arabia as the battleground.

only after all other options are exhausted. It's very early in the game. Many more moves are to come.... The Anglo-American establishment was not going to lie down and let the BRICS simply take what they delicately built up over the last 100 years. A thief simply does not give it up it's plunder voluntarily.

 

[fisharmor]

Fill us in. This is the police abuse forum now.

Ron Paul has been saying forever that the price of oil mirrors fed monetary policy.
When they pump tons of cash into the economy, everyone has more money, so everyone wants more money to part with things they value. Basic supply and demand... only nobody on the radio ever admits that money itself is subject to the law of supply and demand.

When they take money out of the system, everyone has less, and so will settle for less of it to part with things they value.

I don't know whether they're taking money out yet, but they've at least stopped pumping money in. Here we are two months later and everyone has kind of figured out that the dollar isn't going to be worth a whole lot less a month from now, so prices have stabilized.

Silver is also down almost to $15 from a January price of $20.

Other things to consider are
1) The overall tendency of the market is always to LOWER prices.

2) Sure, there might be downward pressure from suppliers - because when a good or service is wicked expensive the natural tendency for the providers thereof is to get as much of it out to market as they can. I'd bet that if you look at production figures you'd see that they tend to ramp up production when oil is expensive and throttle it back when it's not.

 

[muh_roads]

Ron Paul has been saying forever that the price of oil mirrors fed monetary policy.
When they pump tons of cash into the economy, everyone has more money, so everyone wants more money to part with things they value. Basic supply and demand... only nobody on the radio ever admits that money itself is subject to the law of supply and demand.

When they take money out of the system, everyone has less, and so will settle for less of it to part with things they value.

I don't know whether they're taking money out yet, but they've at least stopped pumping money in. Here we are two months later and everyone has kind of figured out that the dollar isn't going to be worth a whole lot less a month from now, so prices have stabilized.

Silver is also down almost to $15 from a January price of $20.

Other things to consider are
1) The overall tendency of the market is always to LOWER prices.

2) Sure, there might be downward pressure from suppliers - because when a good or service is wicked expensive the natural tendency for the providers thereof is to get as much of it out to market as they can. I'd bet that if you look at production figures you'd see that they tend to ramp up production when oil is expensive and throttle it back when it's not.

What I don't understand is how the dollar can be gaining so much value with oil dropping so hard? I thought the 'petrodollar' pegged the two together?

 

[fisharmor]

What I don't understand is how the dollar can be gaining so much value with oil dropping so hard? I thought the 'petrodollar' pegged the two together?

The "petrodollar" is the currency (us dollars) which is used to buy and sell Saudi oil.
http://en.wikipedia.org/wiki/Petrodollar

The only difference between a petrodollar and a regular dollar is that the petrodollars don't really make it back inside the US and therefore aren't a normal part of circulating currency.

 

[ZENemy]

 

[DP714]

^^ Beat me to it.
This episode is relevant to the topic. By far one of the most entertaining conversations Tom Woods and Bob Murphy have had on this show. Its worth a listen.

 

[Brian4Liberty]

From another thread:

Several weeks ago, when oil prices started to drop a bit, one of the corporatist shills employed over at CNBC reacted in dismay. "What will happen to the oil companies? Will the energy sector drop? They employ a lot of people, dropping oil prices could destroy the economy."

Of course they conveniently forget about the burden of increased energy costs on pretty much every other area of the economy.

Back in October, the shills on CNBC started this propaganda. Now it has spread into being some kind of "fact" to the leftists and Wall St shills.

 

[Zippyjuan]

Oil industry has a rich history of boom/ bust cycles.

Prices rise, people jump in to make some quick money. Supply surges. Eventually there is too much supply and prices drop. Producers drop out. Supplies fall. Then prices rise to start it all over again.

One of the conditions the US has put on oil leases is that the owner must exercise it (drill for oil) or lose it to somebody else (to keep companies from buying them up just to keep competition away). Between that and the money they already have invested and don't want to walk away from, we should not see a sudden drop in US oil production though it it continues, there will be fewer new ones started up.

 

[donnay]

Great interview with Marin Katusa, Chief Energy Investment Strategist Casey Research.



@42:00 mark

 

[jkob]

The Saudis are waging war against their competition here in America but also the Iranians and Russians for political reasons. They'll profit big time when they drive their competition out of business and pull the rug out on these cheap prices.