I completely agree with Andy in that no one should listen to what OPEC says, and I stopped a long time ago.
Andy mentions three points about the oil market that will have no short to mid term effect on oil prices.
The new find in Alaska will take between five to ten years to be put into production.
The new find in Russia will take even longer.
While the rig count has gone up almost every week over the last three months it us still 75% below its peak.
I agree with Andy that S/D is what drives the long term oil market, and we now have demand 500 kbd more than supply. This is seen by the draw down in ship borne storage, and greatly reduced tanker rates.
It us true, short term, the futures market can be gamed, but longer term since the oil market is do very large S/D will take over, and thus us what have driven prices to reach $50 again.
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Andy Hoffman…one of the best and most reliable commentators on the alt media……my respects..from la la land…South Africa
I completely agree with Andy in that no one should listen to what OPEC says, and I stopped a long time ago.
Andy mentions three points about the oil market that will have no short to mid term effect on oil prices.
The new find in Alaska will take between five to ten years to be put into production.
The new find in Russia will take even longer.
While the rig count has gone up almost every week over the last three months it us still 75% below its peak.
I agree with Andy that S/D is what drives the long term oil market, and we now have demand 500 kbd more than supply. This is seen by the draw down in ship borne storage, and greatly reduced tanker rates.
It us true, short term, the futures market can be gamed, but longer term since the oil market is do very large S/D will take over, and thus us what have driven prices to reach $50 again.