Everyone is pumping as much as they can right now. Everyone from some guy who owns a small well in Long Beach, California to the Russian guys...Everyone with a well is pumping as hard as possible. The Arabs have invested themselves in expensive growth projects. Iran has involved itself in a very expensive nuclear program. Developing nuclear weapons is the most expensive project one can undertake. The UAE is trying to rival the likes of Las Vegas. Well, I could go on and on.
The Arabs believed that oil would just continue to go up and up and up. The reality is that everyone was pumping so hard that it created a tremendous supply. Meanwhile, demand dropped as the consumers became more aware and technology advanced. It didnt help matters to see a B-52 bomber flying around on synthetic fuel.
The Arabs then started on all these growth and military projects. Then oil pulled back 22% and they are now in a panic. They say they are going to cut back production, but they lie. They cant cut production otherwise they will make less money. Lets say they cut production by 1 million barrels per day, thats $55 million dollars per day that they are not bringing in. So they will say they cut production, but they wont. In fact, they will increase production to make up for the lower price. As production increases, the price of oil will go down still further. The oil inventory report will come in each week saying that there is more and more oil. More ships will be stuck at the ports because they have so much they cant even give it away to the local homeless.
It wont be long until gasoline is at .99 a gallon and the SUV will come back in style once again. No SUVS for me, thank you, I would rather have a fast small car.
Yes sir, Im not kidding. The Arabs will lose money if they cut production. When they say they are cutting production, it means they are raising it. Just like when you hear Jim Cramer telling you its time to buy or sell NYX. Iran is going to increase production so they can fund their expensive nuclear program. The UAE needs to build some type of weird islands with glass houses off the coast for moguls like Donald Trump. Overinvestment=the need for cash=the need for selling more oil....
Imagine you have an oil store and the demand is high. The price of oil suddenly falls and the other area oil stores want to get together to sell less oil. However, your building a nuclear weapon in the backyard and a replica of the Las Vegas strip on the street and it costs lots of dollars. All of the guys who loaned you the cash to do it are looking at you funny now, they want to see the loans repaid. Are you going to cooperate with the other oil store owners, cut your production and then make less dollars? What will happen to the nuclear weapons and the Tropicana?
The Arabs believed that oil would just continue to go up and up and up. The reality is that everyone was pumping so hard that it created a tremendous supply. Meanwhile, demand dropped as the consumers became more aware and technology advanced. It didnt help matters to see a B-52 bomber flying around on synthetic fuel.
The Arabs then started on all these growth and military projects. Then oil pulled back 22% and they are now in a panic. They say they are going to cut back production, but they lie. They cant cut production otherwise they will make less money. Lets say they cut production by 1 million barrels per day, thats $55 million dollars per day that they are not bringing in. So they will say they cut production, but they wont. In fact, they will increase production to make up for the lower price. As production increases, the price of oil will go down still further. The oil inventory report will come in each week saying that there is more and more oil. More ships will be stuck at the ports because they have so much they cant even give it away to the local homeless.
It wont be long until gasoline is at .99 a gallon and the SUV will come back in style once again. No SUVS for me, thank you, I would rather have a fast small car.
Yes sir, Im not kidding. The Arabs will lose money if they cut production. When they say they are cutting production, it means they are raising it. Just like when you hear Jim Cramer telling you its time to buy or sell NYX. Iran is going to increase production so they can fund their expensive nuclear program. The UAE needs to build some type of weird islands with glass houses off the coast for moguls like Donald Trump. Overinvestment=the need for cash=the need for selling more oil....
Imagine you have an oil store and the demand is high. The price of oil suddenly falls and the other area oil stores want to get together to sell less oil. However, your building a nuclear weapon in the backyard and a replica of the Las Vegas strip on the street and it costs lots of dollars. All of the guys who loaned you the cash to do it are looking at you funny now, they want to see the loans repaid. Are you going to cooperate with the other oil store owners, cut your production and then make less dollars? What will happen to the nuclear weapons and the Tropicana?
Hint: Does not involve SUVs (been popular since the 90s), nukes (those too) or Donald Trump (wtf does he have to with anything). GL joker. :eek: