OPEC PRICE WARS:
So as Opec ten years ago watched the US dollar they are exclusively paid in – decline in market value – in a currency trade war with Asia who refused to deal in fair trade – price was manipulated by producers to over 100 dollars a barrel. Making them profit even when the dollar at one level ( 75 cent gasoline in the 1990’s at the US pumps ) flew to 4.00 gasoline as the US Dollar currency war created a rebalance in the trade with China. A trade war the US largely won and China is now off line on economic modeling. A failed communist policy that has shaken a billion people for generations now.
Meanwhile, OPEC seeing the DOLLAR SOAR In value – is now less concerned with the price rebalancing at the pump world wide. OPEC has in the last 12 month been at SUPPLY WARS with North America. North America has more oil ( at a price point ) to take market share away from OPEC – than OPEC itself has in total. The supply lake has shifted.
To secure its customers do not leave – OPEC has moved from long-term contracts as REQUIRED to spot market selling to anyone and everyone to assure customers do not MOVE away from OPEC markets. The BIG LIE of OPEC that they will stop supply and move supply down is EXPERT SILLY stuff in 2017. The market for oil is declining. The new oil is lithium ion batteries. Homes are going off the line to solar and Tesla Batteries. Cars are going electric. Power is being generated by fuels away from oil.
The USA just ( like today ) past laws to increase ( next year ) the ratio of fuel to cars that is BIO FUEL moving oil demand DOWN DOWN DOWN the rabbit hole. OPEC is in a recession. Saudi is in a recession. They built their growth economics on 70 dollar barrel prices. Now no matter how much they pump they can’t balance their nations books.
They can’t pump less because they will lose customers like FOREVER.
The meeting coming up to cut supply must be reviewed with this economic data in mind:
- Opec members including Russia ran their supply up all summer to record-high output in October – so when they agreed to FREEZE PRODUCTION the freeze would be at an all-time record high pumping output – against a MARKET GLUT of supply greater than demand with demand falling in 2017. This can’t raise prices long term. Its a BIG LIE – its an illusion.
- Opec members long out of market share – like # 2 and # 3 largest output producers Iraq and Iran are saying – they want to be exempt from any FREEZE while they continue record multi-year output to even higher outputs for years in time forward. They need the money.
- Lybia and Venezuela and other “on their ass producers including Russia ) need money so bad – whatever they agree to they won’t live by it and they are not agreeing anyway.
- Opec historically makes agreements their members never live with.
- Oil price will we believe based on these data points – fools rally at year end – and then crash substantially in 2017.
The WORLD is DROWNING in OIL – remember we said that.
But remember the world is a casino capital market – manipulated entirely by unregulated money pools in shadow banking that provide a hidden tax upon the peoples of the world – until – the G 100 re-regulate financial speculations globally – the economies are now casino capitalism – wild wild west style – in a new world we call DIGITAL ECONOMICS that the economists and planners have no tools to even measure – given the leverage and speculations.
We have spit in the wind by reporting ETF’s will destroy market capitalism and create the next world depression – as market debt super bubbles collapse due to credit abuse starting in Asia and spreading to the EU ( if not starting in the EU on Dec 5th depending on the referendum vote to Exit the EU in Italy in effect ) – such that fortunes we suggested will be made by SHORTING ETF’s much like the movie the BIG SHORT reported for Sub Prime in 2008.
We are watching all the players manipulate their market share in the PRICE WAR and TRADE WAR that always follows competitive capitalism’s abuse with credit – moving from melt down to years of the trade war and then into the final form of SUPER CRASH world depression, not the recession and world war to rebalance trade. This failed economic modeling is repairable and that the political will to reform policy is not present is a terrible virus on human brain powers – effecting billions today.
The population problem? World War will take care of that. But wait…we can avoid it but we have to THINK our way through the options.
Hey, no one is DOING THAT – the book by Kevin Freeman GAME PLAN tells you all to make your OWN GAME PLAN because no one else IS thinking it through.
CEO SPACE at Disney World Orlando Dec 13th is SAFE HARBOR for those who wish to invest in life insurance for lifestyle. I strongly encourage you to explore CEO SPACE and attend with your family.
Happy Thanksgiving 2016
Berny Dohrmann – Founder and Chairman CEO SPACE INTERNATIONAL world wide