backdoc » February 25th, 2015, 3:28 pm IMO IT'S NOT ABOUT YOU !
WITH INVENTORY SUPPLIES BUSTING AT THE SEAMS AND DEMAND EXPECTED TO DROP DUE TO IMPROVED TECHNOLOGY OPEC HAS NEATLY BEEN PUT IN CHECK!
ONCE IRAQ LAUNCHES INTERNATIONALLY THEY WILL NO LONGER BE CURSED WITH THE 1166 RATE ANYMORE!
LOOK FOR THE GLOVES OF COMPETITION TO COME OFF DROPPING THE PRICE OF CRUDE SUBSTANTIALLY.
IRAQ WILL ALREADY BE NICELY POSITIONED TO HANDLE THIS SEVERE DROP DUE TO ITS SUPPORTIVE CONTRACTS WHICH WILL IMMEDIATELY BE UNDERWAY TO DIVERSIFY THEIR ENORMOUS WEALTH!
WITH SEVERAL MINING PROJECTS SUCH AS GOLD, LITHIUM, SULFUR, AND PHOSPHORUS THEY WILL BE ON THEIR WAY!
AND LET'S NOT FORGET TOURISM, AGRICULTURE, AND WATER PROJECTS WILL ALSO BE A MASSIVE BOOST TO THEIR GDP!
REMEMBER IRAQS ROLE IS TO BE A SUPPORTIVE OR DONOR CURRENCY TO THE EMPIRE COUNTRIES!
IF YOU HAVEN'T NOTICED THERE IS DEFLATIONARY CURRENCY WARS AT A FEVER PITCH!!
GREECE CONTINUES TO BE A DRAG TO THE EURO FORCING THE DEVALUATION OF THAT CURRENCY TO SPUR EXPORTS OF THE EURO REGION AS IT FIGHTS DEFLATIONARY PRESSURES!
MEANWHILE THE DOLLAR IS READY TO TAKE ANOTHER LEG HIGHER ONCE AGAIN PUTTING PRESSURE ON GOLD PRICES TO HEAD LOWER.MMMMM INTERESTING WE SEE SO MANY ARTICLES OF THE U.S.GOV. INVESTIGATING MANIPULATION ON GOLD PRICES!
THERE ARE SO MANY PARTS OF THE ECONOMY THAT ARE PRICED FOR PERFECTION AT THE PRESENT OPENING THE DOOR FOR ANY NUMBER OF POSSIBILITIES THAT COULD BLOW UP CAUSING A HUGE MARKET REPRICING LOWER!
JUST FOR INSTANCE THERE IS A LOT OF DEBT HELD BY BANKS ECT. THAT ARE HOLDING BAD DEBTS DUE TO THE FRACKING PULL BACK!
I LOOK FOR OIL TO STAY STABLE AS I'VE SAID UNTIL IRAQ LAUNCHES THEN THE REALITY OF SUPPLY VS. DEMAND WILL BECOME RELEVANT AGAIN!
WITH GREECE GRANTED A 4 MONTH REPRIEVE ON THEIR DEBT I'M LOOKING TO JUNE AS A LINE IN THE SAND FOR THE REPRICING TO COME.
WE ALSO HEAR FROM THE FED THAT JUNE COULD BE A TARGET FOR INTEREST RATES BEGINNING TO START ITS PATH TOWARD NORMALIZING!
WHATS THAT YOU ASK?
WELL, RIGHT NOW SAVERS ARE NOT REWARDED FOR HOLDING DEBT LIKE BONDS AND CD'S ECT.! THAT WILL CHANGE.
THE PROBLEM IS WHEN THIS STARTS BANKS AND THE STOCK MARKET WILL BE UNDER EXTREME PRESSURE!
DEPENDING ON HOW SEVERE BANKS GET HIT WILL DETERMINE HOW AGGRESSIVE THEY WILL BE AT WANTING TO CONSIDER BAILIN'S. OF COURSE THAT IS WHEN YOU DEPOSIT YOUR NEW FOUND WEALTH AND ARE NOW WEALTHY AND THEY TAKE YOUR CASH AND GIVE YOU A BOND IN RETURN LIKE WE SAW IN GREECE ALREADY DONE!
I ONLY MENTION THIS TO WARN YOU ALL TO FIRST WAIT TO INVEST IN MARKETS UNTIL THE DROP IS OVER.
ALSO CONSIDER STRONG CREDIT UNIONS OR SOLID BANKS EXCLUDING THE BIG FOUR WHO WERE INVOLVED IN THE HOUSING CRISIS AND CURRENTLY HOLD TRILLIONS OF DEBT ON THEIR BALANCE SHEETS.
MY FIRST CHOICE WILL BE USE BROKERAGE HOUSES LIKE FIDELITY, INTERACTIVE BROKERS, SCHWABB, ECT.
YOU CAN USE THEIR ASSET MANAGEMENT ACCOUNT AND NOT EVEN NEED TO BE A TRADER! YOU CAN ALSO GET BETTER INSURANCE ON YOUR FUNDS HELD!
WELL, JUST WANTED YOU ALL TO BECOME PREPARED FOR A NEW FINANCIAL MECHANISM COMING YOUR WAY TOO, ITS CALLED AN INTERNATIONAL RATE ON THE DINAR! HEEE HEEE SLAP !
THERE, HOPE YOUR AWAKE AND READY NOW AS WE SEE THE NEW MECHANISM THE CBI HAS IMPLEMENTED!
EACH AND EVERY DAY GOING FORWARD IS LIKE LOOKING AT YOUR LAST 100.00 BUCKS ON YOUR DEBIT CARD AND TRYING TO FIGURE OUT HOW MANY FAST FOOD HAPPY MEALS YOU CAN BUY BEFORE YOU AIN'T HAPPY ANYMORE! LOL
SERIOUSLY, THEY WILL GET TIGHTER AND TIGHTER EVERY DAY UNDER THIS NEW MECHANISM UNTIL WHEN THEY WALK THEIR CHEEKS WILL SQUEAK! OR HOW ABOUT THE GUY IN THE DESERT DYING FROM DEHYDRATION AND STARTING TO SEE A MIRAGE OF A POND!
REALLY GUYS THIS WILL GET UGLIER EVERY DAY UNTIL THEY LAUNCH THE LOWER DENOMS AND ACTIVATE THEIR BUDGET!
REMEMBER I TOLD YOU WHEN THINGS LOOK THE WORST THAT'S WHEN THEY ARE THE BEST!
THE REASON WE SEE EMPIRE COUNTRIES PITCHING IN TO HELP HERE IS THEY KNOW THEY ARE ABOUT TO BE PAID SOON AND THEIR TREASURIES WILL BE BAILED OUT OF THIS TERRIBLE DEFLATIONARY PERIOD THAT HAS BEEN EXTENDED LONGER THAN PLANNED DUE TO THE MALIKI GOVT..
SINCE 8@8 WE HAVE SEEN THE GROWING CONFIDENCE IN THE COUNTRY AND TEAM ABADI!
REMEMBER, IT'S NOT ABOUT YOU. IT'S ABOUT RESTORING THE EMPIRE'S BALANCE SHEETS! ONCE IRAQ LAUNCHES INTERNATIONALLY, IT WILL HAVE THE AFFECT OF A MODERN DAY GOLD RUSH FOR COMPANIES IN THE EMPIRE!
8@8, DOC IMO
Oil back below $50 as OPEC hopes fade
Matt Clinch | @mattclinch81 Tuesday, 24 Feb 2015 | 4:51 AM ET
Any hopes of a sustained rally in the price of oil disappeared Tuesday morning as doubts were raised over an anticipated cut in production from the Organization of the Petroleum Exporting Countries (OPEC).
The oil cartel is not due to meet until June this year but a report by the Financial Times - with comments by Diezani Alison-Madueke, the Nigerian oil minister - suggested that an emergency meeting was due in the near term. This raised hopes that OPEC could cut production, something it had refused to do back at its last meeting in November 2014.
An anonymous delegate from the group denied these claims, telling Bloomberg overnight there was no emergency meeting planned. Brent crude futures dropped to 58.56 a barrel by 8:00 a.m. GMT on Tuesday and U.S. crude was back at $48.97 a barrel after climbing above $50 on Tuesday afternoon. OPEC was not immediately available for comment when contacted by CNBC.
S&P to rally?
The dramatic fall in the price of oil—which tanked as much as 60 percent from mid-June last year—has been due to weak demand, a strong dollar and booming U.S. oil production, according to the International Energy Agency (IEA). OPEC's reluctance to cut its output has also been seen as a key reason behind the fall. The group produces about 40 percent of the world's crude oil.
Some analysts have told CNBC that there is a global "game of chicken" being played out between the Gulf states and U.S. shale producers, over who can absorb the dip in prices and not cut back on production.
Saudi Arabia is the world's top exporter of oil and one of the biggest producers. The country is the main swing producer in the Gulf region and is able to cut and expand production more freely than some of its neighbors. Alison-Madueke told the FT on Monday that most OPEC countries - except the Arab bloc - were very uncomfortable with the current price of oil.
"Oil should remain a well-supplied market, with U.S. tight oil (shale oil) keeping OPEC in check," a team at Barclays, led by Keith Parker, said in a note on Tuesday morning.
The bank believes that lower oil prices are likely to persist with demand growth slowing due to energy efficiency and lower aggregate growth globally. However, on the plus side it also believes that growth will get a boost from lower prices and highlighted that the S&P 500 usually climbs 12 percent the year after an oil trough.
UK industry slumps
The dramatic fall in oil has tested global oil majors as well as smaller shale producers in the U.S.. BHP Billiton on Monday evening announced that it was cutting back on its expenditure for shale. It will reduce its rig count this year from 26 to 15 and highlighted a 15 percent cut in spending. It has also shelved plans to sell its Fayetteville shale business in Arkansas.
It remained upbeat on the price of oil, however, saying that a cyclical rebalancing of the market was already under way as supply is reduced. The medium-term outlook appears positive, according to the basic resources firm, as it believed that higher prices would be required to "induce the new supply needed to offset natural field decline."
Meanwhile, there was dismal news out from the U.K. The country's oil and gas industry experienced a negative cash flow of £5.3 billion ($8.2 billion) in 2014, according to a new report by industry body Oil and Gas U.K. This was the worst seen since the 1970s. Production revenues were also the lowest since 1998 and exploration has "collapsed" with the number of new wells last year falling to its lowest since the 1960s, it said.
"These are exceptionally worrying leading indicators of where this industry might be heading," the report on Tuesday said.