7 Jan’16

www.EConRealities.org
 

21+ Pages, Exposés on this Site (list)

Crooks in Charge of World Crush Crude Oil Prices

Minimal Changes in Global Balance of Supply and Demand

Are Incapable of Causing GINORMOUS Price Collapse since 2013

Brent Crude’s price is the primary crude oil benchmark the global energy sector follows.

sources: International Energy Agency, StockCharts; spreadsheet

**excess supply decreases price, and vice versa

Brent crude fell over 50% in price last year as global crude excess supply only grew 0.3% faster than demand
over the second half last year.

= The price fell >150 times more than the excess of supply over demand grew!

53.5 / 0.3 = 178!

Ergo: Normal market forces can’t come a moonshot close to explaining that price collapse.

E.g: See chart at bottom for US energy agency’s utterly empty-handed attempt to explain it.

Only global collusion among all major crude oil producers and/or distributors can explain this price change.

Similarly: All other periods (except one) moved opposite to the law of supply and demand (x’s in graph),
further evidence crude oil prices are hugely manipulated, not driven by normal market forces.

Furthermore, the total of global inventories has increased less than six days’ of total consumption!

520 million barrels excess vs. over 90 million barrels daily consumption.

This minuscule increase in total global supply further affirms collusion setting prices as the only explanation.

But why would producers agree to cut spot prices more than 50%?

One possibility is to bankrupt smaller, more vulnerable competitors, especially numerous shale oil ventures.

The many $Billions in global losses, however, seem far greater than what could be attained via such predation.

Perhaps oil companies were given an offer they could not refuse

by powers they dare not ignore

(undoubtedly sweetened by significant paybacks and/or perks sooner than later.
Also relevant is most crude trades under long-term contracts much less affected by spot prices¹).

Those powers would undoubtedly include major shareholders in the world’s largest oil producers,
if not controlling interests.

Without direct access to the world’s top-most-secret, by far most powerful command-and-control circles,*

it is impossible to know with certainty what agenda required slashing oil prices.

Several possibilities, however, suggest themselves.

*Numerous additional examples how these topmost powerful rule the world
are on this page.

The fact global GDP failed to grow significantly if at all after the collapse in energy prices

is undoubtedly a HUGE clue.

As demonstrated on this site’s main page, Uncle Sham’s official statistical lies are covering up
a if not the Greatest Depression this century.

One can only guess how much worse the world and US economy would have collapsed since last year

without this unprecedented crushing of energy prices.

The utter failure of the oil price collapse to goose global or US GDP is ironclad proof

the world and US economies are pretty much if not totally brain dead,
most nations on life support via unheard-of near-zero, even negative interest rates for most of a decade!

As discussed in considerable detail in this section of the above page,
economic collapses throughout history have transferred even more wealth from the many to the wealthiest.

Did the Crooks in Charge (CiC) want a bit more time to get all the ducks lined up before pulling the plug?

There’s no doubt things would be worse now without this energy price slash
providing colossal support to the global economy.

Along with the unheard-of extreme debt bubbles and other economic and financial strains
revealed on the above page,

this utterly outta-this-world crushing of oil prices is undoubtedly a loud siren blaring

it’s time to head for the hills (if not a bomb-proof bunker) with ones gold hoard.

One further plausible reason to crush spot crude prices is to diminish ISIS’ main source of income.

¹Most oil trading under long-term contracts, not spot prices is why oil company profits
have only shrunk a fraction as much as spot prices since last year’s crush.
– Just in case anyone was tempted to get out a handkerchief for big oil!
No, the 90+% are who need all the prayers the universe can muster.

Minutiae: Since spot prices reflect a relatively small percentage of oil trading, the huge mismatch graphed above
may overestimate Global Crooks’ power to manipulate crude overall. Perhaps the graph overestimates their power
as much as double, triple? Who knows? Maybe they’re even more powerful?
Maybe they can’t measure their power very well themselves. –
Kinda splitting hairs since they clearly hold VAST power.

Further: The recent oversupply figures above will almost surely be adjusted downward in future quarters:
For nearly two decades the IEA has consistently under-reported demand, then revises it upward in subsequent reports.

Finally: Although the two benchmarks Brent and WTI crude combined are less than 2% of total global crude output,
other benchmark crude prices follow the two main benchmarks closely:

source: US Energy Info Admin. grasping at straws, utterly failing to explain price collapse