Plunging oil prices and the ww3 connection

The just keep pumping the oil. Why?

VIENNA – OPEC oil ministers meeting in Vienna on Thursday are in a bind. Prices are plunging – and in the short term, the cartel may not be able to do much about it.

Expectations that the group would not cut output to support the market saw the global price of oil slump another $1.89 on Thursday to $75.86 a barrel, extending its losses since June, when it was as high as $115.

That drop has been driven by a boom in shale production in the United States as well as weakness in some major world economies, causing supply to outpace demand.VIENNA – OPEC oil ministers meeting in Vienna on Thursday are in a bind. Prices are plunging – and in the short term, the cartel may not be able to do much about it.

Expectations that the group would not cut output to support the market saw the global price of oil slump another $1.89 on Thursday to $75.86 a barrel, extending its losses since June, when it was as high as $115.

That drop has been driven by a boom in shale production in the United States as well as weakness in some major world economies, causing supply to outpace demand.

globalnews.ca...

So this is what I've been hearing. There is a surplus. However, all OPEC needs to do is stop producing oil which would result in driving up the prices again, as always. So why do they keep pumping?

Instead they appear to favour the opposite strategy – maintain output to the point where oversupply drives prices below the level making shale oil production economical. That, at least in theory, would force shale producers to cut back, reducing the glut and drive prices upward again.

That's the plan? Stay low to 'theoretically' and hopefully make it less lucrative to produce shale oil? This to me sounds like all out economical war. While other weaker nations may suffer from the low-cost of a barrel, the main target would be the US economy. But even so, it's not a very good tactical plan. The shale oil productions companies which survive the price drop will prove to be the dominate ones to contend with seeing they will own the larger market shares once competitors fall out.

At any rate, the answer given by OPEC as to why they're holding out doesn't seem complete for some reason. Until you dig a little deeper.
OPEC policy ensures US shale crash, says Russian Tycoon

In Russia, where Lukoil is the second-largest producer behind state-run OAO Rosneft (ROSN), the industry is much less exposed to oil’s slump, Fedun said. Companies are protected by lower costs and the slide in the ruble that lessens the impact of falling prices in local currency terms, he said.

Even so, output in Russia, the biggest producer after Saudi Arabia in 2013, is likely to fall slightly next year as lower prices force producers to rein in investment, Fedun said.

“The major strike is against the American market,” Fedun said.

So what's happening here? OPEC keeps pumping oil in the hopes of crushing american markets. State of emergency in Ukraine as Russia cuts off coal at the beginning of winter and then we have this:

Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

We have Russia leading in a chess match.

n this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin's Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called "time trouble".

Time Trouble. How appropriately named. Essentially, Putin has played the states at their own game. While the states have over inflated the dollar while suppressing the value of gold, Putin is exchanging worthless petro dollars for hard gold right from the west. Not worthless 'paper-gold' IOUs either.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.

And that's CHECK. Your move Obama.
fortruss.blogspot.hu...

So getting back to the oil surplus. We're headed for ww3, I think the writing on the wall should be pretty clear by now. Once the petro dollar tanks, the gold standard comes back and there isn't a ounce to be found, it's all over but the crying.
Death from above. So in summary, I really don't think it has much to do with the shale oil excuse; a red herring. WW3 is around the corner so drill baby drill.

Two things to consider, some of which you touched upon.

First, as far as OPEC is concerned, might as well say Saudi Arabia, as the OPEC nations will look to Saudi Arabia to lead the way as they have lions share and produce the cheapest. Saudi Arabia however has no indication of handing of market share to Iran or Iraq so stalemate there.

Also, as you pointed out, Russia has lost a lot of buying power with the rubble plummeting like 40%(ish) this year. There main export is fuel and now it's cheap as hell.

There is way more here than what is stated above but yes actions against Putin is one of them. As for the impact to American companies and investors?...... Chopping off nose to spite the face?

a reply to: FlySolo

I heard that shale oil is not as sustainable as the conventional wells...that a shale well can only produce so much oil before its dry, where the Saudis have an unlimited supply for the foreseeable future. So, the Saudis are increasing production so that we will be forced to compete with them until our shale wells are depleated. War might be more cost effective for the American oil industry. The low prices seem nice, but its a bad omen.

My daughter told me last week, that here in the UK petrol prices will reach a £/ltr in the new year....the excuse being forecourt wars between the big supermarkets.....yeah....right!



Jane

a reply to: BELIEVERpriest

An omen. Yes, that's what it is.

a reply to: FlySolo

The price being lower still never brings it back near to what was normal prices for many many years. Where I live anyway they still have inflated prices regardless of production.

There seems to be some huge play in action but I think behind the scenes Russian is not in a match with the US but both working toward some mutual goals.

Plunging oil prices and the ww3 connection ?
makes sence.... army's need cheap fuel !

a reply to: ressiv

It totally makes sense. What a better time to stock up.

a reply to: FlySolo

One main problem I see in this analysis is something most people fail to realize...

Oil is one thing. Gasoline is made from OIL. Who has increased Gasoline production by insane amounts in the last years??
Who can make the best cheapest Gasoline? Gasoline producers benefit from cheaper OIL and Cheaper Natural Gas.. Who has those??

The USA.

Starting in 2011 the USAs biggest export by money was Gasoline/Diesel Products..

There are so many games and so many levels, but I think you find that a world power like the USA is able to play more games in more places at a time than others are.

The country that produces the best cheapest gas who gets access to all the new Oil is still at the advantage with falling oil prices.. You just make gas out of it and sell that at a better price than anyone else can afford.. Russia is stuck at the Oil level.

Russia is losing this game at the moment. I'm sure more surprises to come, but lets never forget Saudi Arabia is on Team USA as well.


S and F
was a good read, I just see it completely opposite haha.


Demand for gasoline in the USA is at a 15 year low btw..

The real shaker behind the scene is of course the Rothschild . Back in around July the divested from fossil fuels . They say it was to save the environment from Global warming but ....They are not any kind of a small player in wars and controlling markets so the truth may lie with them . Most powers answer to them including SA . They created this economic system we have today and they control it .

They also control most if not all corporations but they probably control all Corporations (named as countries . ie Canada ,USA, Australia and New Zeland .They have the center of their economic (banking) in the city of London . They have their military in DC . They have their spiritual or religious power in Vatican city . Note that these entities are not countries but are what can be considered city states .

They are the leading hand behind the scenes that we call tptb .

a reply to: Rosinitiate

originally posted by: Char-Lee
a reply to: FlySolo

The price being lower still never brings it back near to what was normal prices for many many years. Where I live anyway they still have inflated prices regardless of production.

And that makes me laugh when I hear them say they are "losing" money because the barrel dropped a dollar. Shocks, I remember when a liter of gas used to cost 10 cents. Now its gone back down to 1.20$, from 1.47$...

Yeah, they definitely are losing money...

And about production, we were told here by the producers that we would receive gas again, when the prices would rise again, not before, just last week.

Greed knows no bound.

originally posted by: NowanKenubi


And that makes me laugh when I hear them say they are "losing" money because the barrel dropped a dollar. Shocks, I remember when a liter of gas used to cost 10 cents. Now its gone back down to 1.20$, from 1.47$...

Money is not at the same value as it was earlier either.. Money in $ is worth less.

Go make a pack of gum and sell it for a nickel. Go make a hamburger and sell it for 25 cents.

Could the dishwasher sized Fusion device be just around the corner....Lockheed Martin says so.......

Crude was about 25 dollars a barrel in 2000 and jumpd to 50 dollars a barrel in 2005. The price of crude is all lies.

That's the way business goes though isn't it? You identify your rivals, you look at what they're doing to attract custom from you, and try to match it even if it means dropping your prices.

It's funny how they claim our consumption of fossil fuels has lead to a warming of our planet. Yet, they are extremely keen to extract all the resources before our Grandchildren have an opportunity to make use of them. They've already got their excuses in, it's all our fault, we got greedy for the fossil fuels, all they did was supply it.

The million Dollar question is, who`s aiming at who ?

US & SA at Russia, SA at US or Russia at US.

- Russian rouble took another big hit because of this and Russia is ready to intervene which is costing them

- It hurts US shale, is SA trying to force US into something ?

- Or is Russia fighting back ?

A lot of contradicting views can be found about it, and it`s not very clear as to who is targeting who and thus what the goal is.

originally posted by: BornAgainAlien
The million Dollar question is, who`s aiming at who ?

US & SA at Russia, SA at US or Russia at US.

- Russian rouble took another big hit because of this and Russia is ready to intervene which is costing them

- It hurts US shale, is SA trying to force US into something ?

- Or is Russia fighting back ?

A lot of contradicting views can be found about it, and it`s not very clear as to who is targeting who and thus what the goal is.

You can be sure whatever S.A are doing, it is with the consent from the U.S. The Saudi's it appears, regardless of what some may think, do nothing without the U.S's knowledge or blessing.

Fantastic thread and not all the news in your OP was good news for us personally. My wife works at Imperial Oil in Canada and therefore EXON. Her shares in the company have dropped 8 bucks per share in the last 5 days.
We do not buy them, you receive shares every payday and you do what you want with them.

For us it was a no-brainer just save them and see what happens over the course of her employment, well now she is almost ready to retire and we now have a generous amount of stock to worry about.
Link for the shares and how bad they dropped......
www.stockwatch.com...

Your thread contained some excellent links and I truly believe this quote from your last link in the OP.

Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It's more than all the central banks of all countries of the world combined (according to official data)! In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases - of 55 tons - belongs to Russia. Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: "The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply". Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin's game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not. Because Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is, at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation. Interesting fact: the suppression of gold prices by the special department of US Government - ESF (Exchange Stabilization Fund) - with the aim of stabilizing the dollar has been made into a law in the United States. In the financial world it is accepted as a given that gold is an antidollar. In 1971, US President Richard Nixon closed the 'gold window', ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods. In 2014, Russian President Vladimir Putin has reopened the 'gold window', without asking Washington's permission. Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West. Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West. And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

On the other hand I really hope this puts a damper on the "Fracking" we don't yet know how to do this safely and until we learn more I believe it's best to leave it alone for now.

Very interesting thread and S&F for the information you provided and your effort in presenting it.

Regards, Iwinder

originally posted by: Cobaltic1978
You can be sure whatever S.A are doing, it is with the consent from the U.S. The Saudi's it appears, regardless of what some may think, do nothing without the U.S's knowledge or blessing.

That perfectly explains why they are actively pissing on all of their oldest allies.

Saudi's work for Saudi's. If your interests align with theirs, you get to come along for the ride. If they don't, see ya.

originally posted by: peck420

originally posted by: Cobaltic1978
You can be sure whatever S.A are doing, it is with the consent from the U.S. The Saudi's it appears, regardless of what some may think, do nothing without the U.S's knowledge or blessing.

That perfectly explains why they are actively pissing on all of their oldest allies.

Saudi's work for Saudi's. If your interests align with theirs, you get to come along for the ride. If they don't, see ya.

No, Saudi's work for the U.S. Their interests always align with the U.S's. They are providing cheap oil to hurt the Russians and we all know who has the Biggest history with the Russians in recent times.