OIL: spot the aggressor!

Posted: January 20, 2016 in Uncategorized

Well…this was a question from yesterday’s post…for all the talks of the Saudi flooding the market, the following graph is showing who is flooding the market.

The United States of America.

That the media did not pick it up shows clearly that we are not in such a democracy…we tease the Russian, Chinese and Arabic media…but we should look at our own issues.

Why is flooding the market? It is simple geopolitics.

It is a war against the enemies and the friends not so friendly.

A low price crushes Russia and brought to the negotiating table Iran.

Even China, being the 4th largest producer, with oil under USD40 is suffering (interesting I was reading an article that, for the Chinese consumer, the prices of oil stopped decreasing at…USD40 a barrel).

Also the Saudis that have a strange relationship with the US (the US does know that most of the terrorists from 9/11 and from IS are supported from the Gulf states.

Yes the US shale gas is suffering, but, as geopolitics goes, it is an acceptable loss. Unless the crisis from oil/ high yield energy bonds transforms in a US banking crisis. But, learning from the GFC, probably they would have looked into it.

So what does it tell you? The attack has been successful, but now is starting to get out of hand. So probably in 6 months or so oil will start slowly recovering

 

Capture Oil Aggressor

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