The reason for falling oil prices explained (maye)
Interesting article on Bloomberg today SEE IT HERE
Forum Discussion
Fully one third of the price of a barrel of oil is the result of speculators like Goldman Sachs and others of equal infamy playing the market. The futures market used to be comprised of oil producers and heavy users like the airlines who wanted to stabilize prices. But in our current anything goes so long as their is a profit this has changed radically.
With a decline in the price of a barrel of crude from Saudi Arabia and the temporary supply for the next two years from fracking in the USA, the speculators have to shed their positions in a hurry. The drop in the current market price reflects the real price without the influence of the banksters.
It is temporary as the average well from fracking lasts less than 24 months. Most lose 60-90 percent of their output in the first 18 months which is why tens of thousands of them have been drilled as new wells are needed to replace the lost output from wells drilled a year or two earlier.
With a decline in the price of a barrel of crude from Saudi Arabia and the temporary supply for the next two years from fracking in the USA, the speculators have to shed their positions in a hurry. The drop in the current market price reflects the real price without the influence of the banksters.
It is temporary as the average well from fracking lasts less than 24 months. Most lose 60-90 percent of their output in the first 18 months which is why tens of thousands of them have been drilled as new wells are needed to replace the lost output from wells drilled a year or two earlier.
