Sunday, December 18, 2016


Oil Supply, demand, and futures are all aligning for the fastest and steepest decline in oil prices in history...

Oil sponsors global terrorism, global hegemony, and the consumption oriented lifestyle. All of which are going out of business. Oil exhibits the fundamental issue that is bankrupting Globalization: it's supply without demand. 

Oil demand is predicated almost solely upon global growth, which is now slowing. Back in 2009, when the price of oil fell from $150/barrel to $40/barrel, oil demand DROPPED.

Below we see oil demand (red) and supply (green) in millions/bpd. We see that in 2008 at the peak, the market was in deficit, as demand exceeded supply. Now however, even taking into account the OPEC/NOPEC supply cut, the market is still in surplus as of Q12017.

Picture what happens this time in the event of a demand drop due to economic conditions, with the market already in daily oversupply and global inventories near all time highs.

The ENTIRE oil industry and dependent nations will be rendered insolvent. Overnight. 

Margin of error. Zero
U.S. oil inventories
End of year 2014, 2015, 2016 (circled)

Notice where oil inventories were in 2009, and why the market was able to clear...

Oil Futures Commitment of Traders (All Longs)