THE TRUTH ABOUT OIL – THE TALE OF TWO MARKETS
America moves from 1 million barrels a day to 2 million barrels a day – a surge even Opec had never thought could happen this summer. What is that DOING to the OIL markets.
So the large Saudi and Russia producers now losing market share ( forever ) as their customers leave for better product – lower cost product – and the fantastic ability to not pay premium cartel manipulated prices – these two PANIC. Their final card is the Public Relations stunt of the century.
As today’s photo’s show the looking very feeble Saudi King now in Moscow next to a giant Russian standing near to him – before he falls over – seek to reassure the oil markets that everything is as they lie it to be. The lies include ( today ) from both:
- We are so pleased to see shale oil a fixture of the market that is here to stay.
- The market can absorb shale output soaring t 100% per day growth in only weeks in America.
- Russia and Saudi cooperation rebalance the market.
The market is not rebalancing. Demand for oil will peak forever then fall FOREVER.
During this last small tweak in global demand and overall its not much growth – the supply of oil is soaring. No end in sight from new discoveries in the North and from Brazil to the Med.
From the China sea to the Gulf. The new discoveries make Saudi look like yesterday’s news. Saudi and Russia are suffering catastrophic budget deficit’s and borrowing to stay afloat at the oil price they can’ no longer cartel control. When oil moves from 140 dollars a barrel to 39 dollars a barrel have you taken your little cell phone calculator out and worked those percentages?
Do you appreciate Russia debt and Saudi budgets were calculated on oil never reaching todays low prices or did you miss that.
The elder King in his 80’s and is not in his health visiting MOSCOW for FUN. He is in Moscow because knowing 2 million barrels a day from America rising to 5 and unstoppable is taking market share – customers – away from OPEC forever. All OPEC members are now cheating the quota’s which they talk about extending but their members will not extend really – from March – are not working – did not work.
OPEC is in PANIC.
Opec is marginalized.
The market reads through the PR spin on oil and gives OPEC F. An F grade in failed policy.
The cartel sought to manipulate prices higher for pure greed not supply and demand and market pricing.
The caret has paid billions upon billions in LOST REVENUE paid mostly by Russia and by Saudi to lose their own customers forever. If this is not a policy folks at the top should die for I do not know what is. How long can Putin assuage the OIL leadership on their losses of billions and customers forever. Somewhere someone is doing the math.
Which is why the OPEC PANIC CARD is being played with old unwell King of Saudi looking like he is about to topple over to the ground – is visiting Russia – to jaw bone markets with nothing but air and words – that oil is fine and rising back in value by LYING. The truth is winning out.
Markets are winning out.
So the fatal OPEC truth and the BIG LIE – is that today THE OIL MARKET IS SPLIT IN TWO. Oil markets have now forked in the road and America is becoming the single LARGEST SUPPLY outlet everyone is coming to. Why?
- Price – American Lite – easier to refine and cheaper is selling for 49.00 a barrel right now.
- Opec Heavy more costly dirtier oil to refine is selling for $ 57.00 down from 59.00 dollars where it was for a nano second. And free falling.
In the Tale of Two Markets the customers are moving to America and America is picking up production by 100% in 2017 to gladly serve the customers of the world leaving OPEC. Mad as hell at Opec greed and manipulation versus real market forces.
The oil market is NOT rebalancing another huge lie.
The supply is soaring over demand.
Seasonal factors created some draw down in stocks which occur at this time of year.
Stocks will now rise into next Spring and oil prices will PLUNGE versus dip. Watch.
The final wild car OPEC has ( Russia and Saudi ) to save their debt ridden in the red ink nations – is to use war and allow untold horror’s to assure oil price is manipulated higher for their own selfish greed. That may yet happen. We’ll see. Without that horror final card ( perhaps being all planned out right now between the needy in Moscow…wait for it ) the lies will continue.
My readers have the economics.
You can track and read between the lies.
The largest resetting of world economics is now unstoppable.
The US dollar is now underwritten by the 2 million oil exporting barrels each day and rising – soaring . The US has unlimited oil more than Russia and Saudi combined.
The US is rising to the largest best value oil producer and the dollar strength as world reserve currency is foundational underwritten by food and oil wealth – ahead of any nation upon the earth today and our infrastructure systems.
So that long war of manipulation and greed in oil markets has been lost by marginalized OPEC. They can not longer producer a hidden tax upon all people of the world for the cost of everything – energy core pricing. Their economic models in Saudi and Russia are no longer sustainable in present economic terms due to their red ink budgets and soaring debt accounts.
45% youth unemployment in the Gulf nations with an elite wealthy holding 99% of the wealth in the hands of 1% of the population must economically not politically rebalance. Some day.
That day of rebalancing is getting close and close.
So OPEC tries to put a HAPPY MEAL face on the PANIC VISIT of the two losers in the market share war.
As you have read if you scroll here for a long while it its with the COST OF EVERYTHING all about MARKET SHARE and Opec and its members have brutally lost using Saudi Failed economic strategy MARKET SHARE. Eventually me Russia will have ENOUGH of all this and will move to secure its MARKET SHARE. Smart.
Today Russia is a HAPPY MEAL trying to get the BILLION DOLLAR DEALS from cash reserve rich Saudi because Russia is broke and has no reserves to pay for its budget and military today. To they are all making their secret deals including war plans if required to last gasp elevate failed OPEC into higher prices for their greed need.
That is the TRUTH and all my readers know you won’t read that on CNN.
Berny Dohrmann – Keeping the Truth on Bright for our readers – follow the money folks— October 5, 2017