The Two Real Reasons Oil Prices Are Currently Slipping

The Two Real Reasons Oil Prices Are Currently Slipping

by | published September 25th, 2015






So why are oil prices heading downward?

Distortion currently occurring in the market.


A Drawdown Should Push Prices Up








So what gives?

Here’s Why Prices Are Depressed…










…And How We Can Profit



By how much?






  1. Paul Ellenbogen
    September 25th, 2015 at 14:36 | #1

    The market is the final arbiter. All opec producers need all the revenue they can generate. The Saudis gave 130b to the Saudi people they r afraid of Isis and internal threats even though they have 800b in reserves. If the Iran nuclear deal goes through more oil on the market. What I don’t understand if we r allies with the Saudi’s how we can let them try to destroy our shale industry. Also I don’t understand why the opposition to the keystone pipeline. There r many thousands of miles of pipeline in this country. With Goldman and citi both projecting much lower prices I am very confused and I have followed oil for over 40 years

  2. Robert in Vancouver
    September 25th, 2015 at 15:30 | #2

    You are right Paul, it’s hard to understand the opposition to keystone. Canada would love to sell all of our excess oil to our friends and relatives in the USA.

    USA would get a reliable oil supply produced and shipped according to best environmental standards, Canada would get a long term reliable customer, and all of the money would circulate within our two countries instead of filling the vaults of dictators who hate the USA.

    But thanks to left wing politics, environmental extremists, and the media, keystone won’t be built.

  3. James Parrott
    September 26th, 2015 at 10:40 | #3

    This is nothing about the market. It is all about geopolitics, and GS’s American Greed at it’s finest!

  4. james parrott
    September 26th, 2015 at 23:33 | #4

    Your next remarks on this theory could be the most important thesis on this subject anyone could ever conceive! please keep up this great work toward the truth of what is really happening! Thanks in advance!

  5. Steve Craft
    September 28th, 2015 at 08:25 | #5

    The Saudis have been covering our pricing desires single handedly since post WWII arrangements. Now, Obama sells Israel down the river, and plays nice with Iran and paralyzes the Pentagon, and does only enough for cover against Isis. The Saudis must think that if we will sell Israel down the river, we could easily do the same to them. Then, after all of the price protection they have done for us for 40+ years, we crank up the oil fraction machine, sending a signal of ‘thanks for the long help, but we will do this regardless of your opinion’. As of late, we are bad partners and thus deserve what we get. God willing, this will change soon. The keystone issue is ridiculous. No one really cares about the environment. It is a no risk irrefutable weapon of fear and votes and manipulation. Caring is a way for non caring selfish people to prove their face in the mirror to themselves as they do all the they can to dismiss God.

  6. Brian S Galpin
    September 28th, 2015 at 23:18 | #6

    Keystone will never happen due to Buffet purchasing BNSF. and taking it private. With the wells he had interest in and coal from Wyoming who is going to even try to match his wit? Unless he has a major spill that threatens the environment he is the King of the rails and petroleum processing and transportation. Now thatvisconly part of it but for one man to have that much power may hurt Americaxin the end!

  7. Naveen Sreedevan
    September 29th, 2015 at 08:49 | #7

    Kent, Want to share few points that corroborate your views. Firstly, Sadui and Abu dhai is one of the top five soveriegn wealth funds and they can out play even Goldman sachs in futures market.
    Here is some data that imply to me that oil is in bea market territory. these two I picked from US energy information administration website.
    As you can see in this lin (scroll down please) Us crude inventory is record high compared to five year average -more than 100 million barrells compared to 5 year avg.

    Secondly, Debt service as a percentage of operating cash flow is now more than 80% as of 2nd qtr for US onshore oil producers.

    Saudi Arabia is investing heavily in Solar farms. they want to export electrcity in future.

    Now oil, the Black Gold has become the Black sheep and king Coal has become Dirty Coal

  8. Naveen Sreedevan
    September 29th, 2015 at 08:51 | #8

    Another pointer to bear market for oil is currency chart of USD/CAd. It is in an uptrend indicating that Canada a commodity/oil player is in the dumps.

  9. October 4th, 2015 at 08:29 | #9

    information is very helpfull

  1. No trackbacks yet.