Conspiracy theories aside, it shouldn’t be too difficult to figure out what is going on in the oil market. In addition to underlying economic/market factors, the Obama Administration is now in an all out economic war against Russia. With collapsing oil prices being its weapon of choice.
As you can see from the chart above, there is no hint of a bottom or any sort of a reversal (thus far). How low can oil prices go……$50….$40….$30? No one knows and that’s the problem. As recent OPEC meeting showed, no one is willing to cut production. And while the Russian Economy has been on the receiving end of this deliberate Saudi Arabia/US economic attack, the pendulum is about to swing back.
Bloomberg: The American Oil Boom Won’t Last Long at $65 Per Barrel
The problem is, now that the market forces have taken over, it is impossible to say how low the oil will go. Should oil prices stay below $70 per barrel for any prolonged period of time, the US shale producers will be decimated. Along with tens of thousands of high paying US jobs. It is as simple as that. I guess that would constitute another victory for our clueless ruling class. A sad state of affairs.
