OPEC MEETING – LIARS TALKING TO LIARS
Oil bumped up a tiny bit in reaction to the SAUDI go it alone cut as the big gorilla pounded on its own chest.
The members, all cheating now, agreed how great it was Saudi was doing to give them all their old market share. As Saudi cuts back customers of Saudi move to buy from the cheaters as well as non OPEC members like the USA.
As the price goes up even a little shale in America and other nations soars in upward production. New off shore supplies from South America, from all around the world, are now coming on line and in 2018 huge new production. The largest new field in modern history was just discovered in Alaska and there is a lot more where that came from. President Trump is going to open USA massive stores on Federal Lands and off shore to exploration. As he does that the USA is going to pass OPEC in production of oil and market share.
Today the dollar is going down as it has lost over 25% of its purchasing powers against EU currency. The IMF just downgraded the USA ( again ) on GNP for 2017 now only 2.1 % a long way from 3% AND THEY DOWNGRADED THE EU. Again.
The output of both national trading groups is falling. Due to failed policies of their governance – in our case the US CONGRESS is killing America. Bad policy? No. NO POLICY. Obamacare is failing moving into a bankrupt plan. The model does not sustain itself and all the Congress in the world can not fund the short falls. Obamacare is a failed law from the US Congress who never takes responsibility for anything.
Meanwhile they will not repeal it – as it can not fund itself – and they will not fix it. They just want NO LAWS under TRUMP and that is what the America people are getting. A congressional dereliction of duties. A constitutional crises and a dereliction of duties by the US Congress. We wrote here a law firm can open the largest most successful TORT IN HISTORY suing the Congress for IMPEACHMENT and damages to the American People. I’m happy to first sign the class action in Federal Court.
Scroll and read my blog on IMPEACH THE CONGRESS OF THE USA.
They are about to ruin the credit of the United States OF AMERICA for breach of congressional duties, negligence in office, and malicious mis use of public process for starters TORT LAWYERS. Who do you know – copy this to them.
Meanwhile Saudi pounding on its big hairy oily chest is about to lose so much market share that it is impossible to define the harm they are doing to their own nation. First they are in the red spending more than they make at today’s oil prices. Second they are going into record debt to keep things afloat. This will be a multi year trend.
As they lower output – their own customers run like rats off a sinking ship into their competitors like IRAN who is picking them up like pop corn. Iran profits from this moment while Saudi profited in their sanction years by taking market share from Iran as production in Iran fell to a fraction of what it once was as the second largest lake of oil in the world. Iran could invade Iraq today and take that lake over as a Saudi Rival. Iran could then take over SAUDI.
How far will the age old 1000 year ancient enemies push each other next?
Iran is picking up Saudi market share and is not going to stop the FLOW of MONEY into its nation finally free of major sanctions. It is going to RESTORE ITS NATION and PEOPLE with oil wealth to beyond their former glories. Saudi is an opportunity more than an irritation speaking ECONOMICALLY. The Opportunity from Monday’s statement Saudi would introduce a ONE MONTH cut back on itself of yet another million barrels of Oil.
Russia says 300 million barrels of surplus oil have been removed from the markets. Lets look at this a bit:
- The USA numbers are way up in storage during the peak summer months – way UP – surplus UP – when the USA cuts use in September oil will pile up even MORE.
- The world is awash in tanker storage in San Fransisco five MILES of Tankers full to the brim are just anchored in San Francisco Bay same for China and Hong Kong and the world. Floating storage has run out and they have no new storage to keep pace with the rising glut. Russia as always LIED. Lied again. If you cut back just over 1 million barrels a day over a year you remove 300 million plus barrels that would have added to the glut – and you lost your own market share by 300 million barrels a year – because that cut was fully made up by Opec cheating and new non OPEC Production – a major % from the USA increased oil exporting alone. Not one barrel of the GLUT has been reduced the GLUT is GROWING – Russia lied – the only thing that is declining is OPEC MARKET SHARE as their customers run to other suppliers.
- New oil supplies soar at sixty dollars a barrel and at 55.00 they are rising more rapidly than now and oil supply is rising rapidly.
- Opec talked about rising demand against limited supplies. That is a lie. Oil renews. 200 year old wells are full again. Oil is being made by the earth which farts oil and gas. The False News Oil is scare is like just Diamonds where Debeers shoots folks for walking the beaches it owns and controls in Africa where the diamonds can be recovered by your toes. Oil and Diamonds are not scare they are CONTROLLED by MONOPOLIES in the market to keep prices artificially high from free market economic forces. Oil is plentiful and we are all drowning in oil. The day when a handful of ROBBERS could impose a legal tax on the entire world ( 140 dollars a barrel oil price of several years back ) is come and gone. The merry band of legal thieves has lost control of its market and their control can never be returned. OPEC is a failed cartel and their day has come….and their day has gone.
- Sunni Saudi is surrounded by 100 Million Iran Shites. How does that work out for them long term in the future? Politically. Religiously? Economically? Does any one get the truth. Saudi needs 70 dollars a barrel to break even economically. It is all about THEIR MONEY. They set up a spending that outflow does not match inflow. They have no future at 40 dollar and lower oil prices. This their survival moment. They are in utter panic economically. They are threatened on all sides of their nation and with 40% youth unemployment from within. Cash to support their secret police state and military to safe guard the Kingdom’s royal family is in short supply. Their cash is not replenishing. They are desperate hence their last card – we will cut back ( for one month I mean really ) ourselves. Like a million barrels for one month or a year will DO ANYTHING really. The market share will just again shift from them. No one is going to buy their higher priced reduced production oil as Saudi supply now is the MOST UNRELIABLE into the future and the most HIGH PRICED. Who wants to be THEIR CUSTOMER really? Moving forward. Monday Saudi broke the MARKET SHARE WARS into a full retreat of customers to THEIR OWN ACCOUNT. Now their red ink is going to rise off any economic chart.
Now if I where Russia and Iran…I would move to take market share from Saudi as if the market belonged to ME alone in the future. The blanks Saudi is firing and your silver bullets allow oil supplies world wide – MONDAY to forever rob SAUDI and its totally failed oil policy to control manipulate and raise oil prices rom market rates to cartel controlled rates – for what it is. FAILURE in the EXTREME and with enormous momentum to STEAL SAUDI MARKET SHARE once and for all.
As an economist – oil suppliers – it is GO TIME. Feed off the dead and dying Saudi bones there is still some meat left boys and girls. Timing is everything. Monday Saudi gave the market a huge feast. Itself.
Berny Dohrmann – Sad to SEE Saudi move to war its last card
PS: Opec is beyond failed now. OPEC is a LIARS CLUB of the greatest liars in the world telling lies to one another as if they were telling the truth.— July 24, 2017