Falling oil prices and what`s behind it

This is by far the best and clear analysis about the whole oil price falling I have come across lately.

Answers which are given are :

- Is Saudi Arabia attacking the US by targeting its fracking industry?

- Are the Saudis trying to gain market share again by not only hurting US shale but other suppliers too?

- Is weak demand being responsible for the lower oil prices?

- Are Russia and Iran being targeted by Saudi Arabia and the US?

- What`s the role of the media in the whole situation?

If you don`t get after reading this complete piece, you might as well give up trying to figure out what goes on the World because it doesn`t come any clearer as this.

Only a short snippet because the whole piece should be read :

So, according to the author, the Saudis have manipulated oil prices at least five times in the past to achieve their foreign policy objectives. But, if that’s the case, then why does the media ridicule people who think the Saudis might be engaged in a similar strategy today?

Source

Have no doubt, this is a siege beyond anything like castle warfare.

The US made a behind the scenes deal with OPEC to keep them pumping cheap oil, and were willing to take a hit on recent US shale oil production to punish Russia, as are many nations. The point is to stop Russia from selling their most profitable export at a profit, and deplete the coffer's of that government.

This is a coordinate attack against Russia because when they pulled up their boot straps it started to harm other nations. There was a fear that Putin was trying to re-establish something like the Soviet Union by force. The only other option, other than a war nobody wants, is to destroy their economy and make Putin lose face on the world stage and in front of his people.

If this attack is sustained their economy will crumble. With that goes the leader.

America can absorb the hit of low oil prices, and so can Canada, and every OPEC nation because they have a cushion of wealth and financial stability to fall back on. This is not the case for Russia, they can't bail out their banks, the price of basic goods will continue to climb, and wealth will bleed away from the country into more favorable climates.

Sucks to be Russia right now, and others will be harmed by these actions, but I still think it's the lesser of two evils.

Bombs or bucks?

I'd rather see them starved into submission than worry about an armed conflict that could result in a total pissing contest that would cost millions of lives.

a reply to: anxietydisorder

Russia (and China) knew this was coming and have weapons ready to fight it.

China knows it will be next and is on the side of Russia. Before they both go down they can bombshell the game being played in numerous ways. To think this will end simply with Russia going to bow down to the West is a bit premature.

- Capital control for Russia to protect the Rouble

- Cutting the gas to Europe by Russia

- Letting businesses go bust (without defaulting themselves) so European banks get into serious trouble

- Backing their currencies with Gold

Those are the ones I know, but they might still have other ones which I`m not aware of.

This hasn`t ended in a definite outcome for sure yet and will have many more chapters written on to it. What the West is doing is the same as happened before and has been studied thoroughly by Russia and China. One example is Russia already started to use its own parallel system to SWIFT recently.

Russian banks admitted to regulator’s alternative to SWIFT for internal banking operations

Source

a reply to: BornAgainAlien

Whats behind the falling oil prices?

The oil price has been crashed to prevent Russia from selling oil and gas and using the US dollar they get in return to buy cheap gold off the US which the federal reserve has deliberately kept suppresssed as a favour to 'too big to fail banks' for the last few years

The US is now apparently caught in a trap. The only way they can get out it seems to crash the oil price in the hope of sending Russia broke so it will have to start selling gold, (which means it will have to stop buying more importantly)

From what I gather the fed will run out of gold to dleiver Russia if Russia just keeps going as it is/was. Not sure of the time frame on this though.

paul craig roberts has got a very good article that explains how the fed has kept the gold price suppressed for so long.

There is also a good explanation of what Russia is doing and the impact of it on the Jimstone forum.

All other reasons you hear are likely to be false or incidental, after all, the US doesn't to admit their caught in a bind of their own making do they?

a reply to: learnatic

The US is now apparently caught in a trap. The only way they can get out it seems to crash the oil price in the hope of sending Russia broke so it will have to start selling gold, (which means it will have to stop buying more importantly)

It`s all out War by proxies and economic now.

They smile to each other before cameras (except at the G20 summit of course), same as it was when Roosevelt, Churchill and Stalin met in February 1944, but in the background things aren`t so colourful.

Paul Craig Roberts has got a very good article that explains how the fed has kept the gold price suppressed for so long.

Yeah, the suppressing Gold, Silver, etc has to do with keeping the Dollar strong.

I just sit and watch it with popcorn in hand how this is going to play out (I might not be able to do that again once this blows up).

originally posted by: anxietydisorder
Have no doubt, this is a siege beyond anything like castle warfare.


This is a coordinate attack against Russia because when they pulled up their boot straps it started to harm other nations. There was a fear that Putin was trying to re-establish something like the Soviet Union by force. The only other option, other than a war nobody wants, is to destroy their economy and make Putin lose face on the world stage and in front of his people.

Sucks to be Russia right now, and others will be harmed by these actions, but I still think it's the lesser of two evils.

that's pretty much how I see it. This didn't happen by chance or lack of foresight. This is all part of the geopolitical positioning and currency wars.

a reply to: BornAgainAlien


That's a pretty interesting take on a situation that's been developing over the past few years.

I spotted and posted this story a little while back. At the time it was scoffed and sneered at. Considering the present situation it's no wonder oil prices have fallen.


For what it's worth...
[atsimg]http://files.abovetopsecret.com/images/member/11b811ae98d0.jpg[/atsimg]The Americas, Not the Middle East, Will Be the World Capital of Energy

For half a century, the global energy supply's center of gravity has been the Middle East. This fact has had self-evidently enormous implications for the world we live in -- and it's about to change.

By the 2020s, the capital of energy will likely have shifted back to the Western Hemisphere, where it was prior to the ascendancy of Middle Eastern megasuppliers such as Saudi Arabia and Kuwait in the 1960s. The reasons for this shift are partly technological and partly political. Geologists have long known that the Americas are home to plentiful hydrocarbons trapped in hard-to-reach offshore

a reply to: BornAgainAlien

If Russia and Iran are going to constantly threaten the US dollar, Iran constantly threaten Saudi Arabia, then Russia and Iran should expect a response no?

Since Saudi Arabia told Russia to bugger off reference their oil industry and global impact I would say Saudi may be tired of Iran and Syria, supported by Russia, constantly causing chaos in the region. Even more so with Syria's undeclared wmd supplies that they stated were all turned over. The same holds true with Iran and their nuke program and their effort for the bomb.

There is no conspiracy. Its called geo political politics. It means don't get mouthy on the world stage by constantly threatening to stick it to another country economically and then complain when it "boomerangs" into your noggin.

Beside Putin says the Russian economy is strong and no one needs to worry(economy retracting and inflation). Putin states the ruble is stable (dropped 7% yesterday).

There is a phrase -
If you are going to play stickball in the Bronx you best know the rules.

Of course this is you and I assuming there is some geopolitical conspiracy against Russia - which their is not.

With that said Russia has been given every opportunity and THEN SOME to end their financial issues. Sadly Putins ego is more important than the Russia people.

a reply to: SLAYER69

Shale might be peaking soon. All the bloating about the shale miracle could just have been a preparation for this what is now in the working (attacking Russia and Iran).

It seems the rig count already going down now.

Just as T. Boone Pickens warned "watch the rig counts" last week, so the Baker Hughes rig countjust collapsed for the 3rd week in a row to 8-month lows. This is the fastest 3-week drop since mid-2009. Crude prices were already weak but the news has flushed WTI to a $52 handle (not seen in the front-month contract since May 2009)

Source

Here`s some more about the possible US shale peak...

The Coming Bust of the U.S. Shale Oil & Gas Ponzi

Source

a reply to: BornAgainAlien

Yeah I've read all the Doom and Gloom about it for a few years and while it was in development. However, here we are with more oil than ever before and it will continue to be this way for much longer than many are willing to admit I suspect.

a reply to: SLAYER69

They have to keep offsetting the best (easy) shale deposits with ever more worse (smaller) deposits to even compensate the quick decline rate of the best ones to at least stay flat, so peaking might occur much faster as you think.

They have been talking about this and I believe your take on this is correct, check out the following link, they have been releasing news on this for the last few months.Oil Net News

a reply to: BornAgainAlien

TO.... the OP.... I think the manipulations and the sinister conspiracy goes much deeper than the OP laundry list...





I will wager that OPEC/ the Saudi or Qater-UAE & those gulf states that support ISIS (& other radicals) has a boatload of derivatives, oil futures that bet oil will break below $50. BBL...
which should send those unregulated oil derivatives spiraling out of control for the handful of TBTF USA mega banks with Trillions tied up in high priced crude oil

OPEC along with sinister minded Gulf States who pray for a Caliphate to replace the 'West', the USA hegemon, (big Satan) are busy engineering this operation...'to-break-the-bank'... with all that derivative profits, then OPEC can use their remaining balance sheet load of Treasuries to buy up the severely depreciated USA homeland assets like buildings/mining operations, resources like water sheds, etc.
(same as the Chinese plot)


the Brezezinskis' have outsmarted themselves and Saudi, China, Russia, Iran... are turning the tables on the USA plan to temporarily slump the price of oil/hydrocarbons/energy.... they have made a bunch of sneaky derivative bets that the TBTF banks thought were insane...but the trap has been sprung on the banker 'masters-of-the-universe' dupes


2015 should see the USA buckle under economically, making the 2008 great recession look tame, the USA is soon-to-be-carrion

Well if the USA wants to attack Russia by shooting itself in the foot over shale gas then i think i know who's going to win that one since Russia could ask China to hep out if needs be.

OPEC like "we the people" has no rights and will simply do as the bankers in Washington tells them to do and would not dare fart in the wrong tone when it comes to Zionists who control the states.

Bp, Shell,Exxon are all drilling for oil inside Russia as we speak so they must be feeling the pain too and shows that this war might not be quite so hot as people are being told.

Maybe the truth is even worse than trying to provoke Russia/China into a nuclear war, maybe the demand has crashed in the west which will blow up the bonds and CDS markets and this bad news needs to be blamed on someone else besides the money counters.

NONE OF US REALY KNOW WHATS GOING ON !

This in itself is quite disturbing and only goes to show that these money changers can play the market as they see fit without a question being asked and if they can crash oil by 50% then taking gold down by 90% would be easy but thats not to say that you will ever get 1oz of physical gold for anything less than $500

a reply to: VirusGuard

word on Money Markets CNBC this morning reports most all the big oil producers are cutting drilling/workers/production by 45% because of the loss of profits... so they expect a long duration of oil below $50


I suspect some of the banks warned them of cutting off capital flows/loans all together soon...
so big oil responded

I think the mega banks are hep to the derivatives payouts they are gonna get knee-capped by very soon (which will tighten all money lending activity--- and possibly lead directly to the anticipated "bail-ins'" by those same banks from your/our savings & checking accounts...

its hard to point the finger at the true destroyer... it could be Saudi, or USA or Bankers, less likely is Russia the instigator...
perhaps the globalist elites are the ones orchestrating the whole thing

I honestly don't get why people are crying about lower oil prices.

What it means is Saudi has less money funding terrorists.

Means Iran has less money to fund its proxy wars in Syria, and against Israel.

Means Russia gets screwed too, which is why it went for Ukraine- oil, and nat gas.

Means China who is was making out like bandits in Iraq is getting screwed.

As for us the price at the pump is cheaper. Making goods across the board cheaper.

There is no pleasing people.

They cry when it's high.

They cry when it's low.

But low oil/ gas prices is only going to be short lived. It will go back up even higher.

It's hardly a conspiracy.

a reply to: St Udio

OPEC would not act without a nod and a wink so you can bet your life that the insiders would have protected themselves before the price crashed and they would also have a guess just how much pain they could inflict on the CDS markets without crashing them.

The too big to fail banks will get more cream just like they did in 2008 and the pension companies will be left to pass the losses on to the 401k's me thinks.

For all we know $60 p/p is being paid over the counter and another $40 p/p is being paid under the counter to keep OPEC on side but who knows.

a reply to: neo96

As for us the price at the pump is cheaper. Making goods across the board cheaper.

The price at the pumps has dropped nothing like the cost of oil which makes me think that a deal might be paying OPEC so much per barrel under the counter and when oil goes back to its old value then you can bet we will be paying more than we were at the pumps.

The people get stuffed evey tine and at every turn

There you go...

Russian economy attacked through oil prices – Obama

Source

It could actually be moved now out of General Conspiracies.

originally posted by: neo96
I honestly don't get why people are crying about lower oil prices.

But low oil/ gas prices is only going to be short lived. It will go back up even higher.

It's hardly a conspiracy.

sure the dynamics are obvious to see...
but delving into the deeper geo-political shake-ups is more difficult....

at what point is cheaper crude counter productive to the unknown puppet masters pulling the strings

when Russia retaliates by not supplying Europe/NATO the 30% of fuel it needs to keep society & industry running?

when 99% of the small fracking drillers sell their operation, when the shale fracking industry disbands,
when big oil closes down 45% of all operations & laying off 100's of thousands ?

just what kind of re-alignments of national industries, strategic resources, closings of mining/minting/energy production will result in just the right type of reconfiguration of USA , Russia, Iran, Arabia ability to produce and transport energy resources which creates industry, national strength and wealth creation.. ?

no the conspiracy is not the obvious disruptions of shale oil, reduced Russian take-home money for natural gas/oil sales

the shutting down of each nations energy sector and the ripple effect across the economic landscape seems to be the finish line...
perhaps causing a worldwide deflation paradigm..?

making the Quad-Trillion, Unregulated, Derivatives Casino Market go hyperbolic then crash..? (over the price of oil/gas)

those deeper aspects of the current assault on energy, precious metals, FOREX... by a combination of forces for their own selfish reasons....are leading the whole crap shoot towards an abstract economic black-hole

are fiefdoms and war-lords, fortified compounds in our future.... because this cheap oil gambit*
*

- www.vocabulary.com/dictionary/gambit
A gambit is a strategic move, often in chess but also in politics or business, where a player sacrifices something up front for future gain.

this cheap oil gambit is snowballing on many fronts... with the morning announcement by big oil to scale back on production-distribution-storage...& the TBTF banks calling for a economic downturn (money velocity & derivatives losses)
That is the secretive conspiracy underway and building momentum ...which will sooner-than-later crush the un-prepared