AmericanThunder
Super Moderator
I have posted something by this writer before.
But as a conversation promoter I thought this was worth sharing.
———————
Yesterday the world changed forever.
It will go down in history as “Oil Armageddon”. What happened yesterday has never happened before in history.
It’s the kind of event that creates wars and revolutions, and BTST Members need to know about it…
So what happened?
When oil started trading yesterday in the US, the price was around $18 per barrel.
Throughout the day it proceeded to fall off a cliff by completely crashing by more than $50 to *MINUS* $40.32!
What does that actually mean?
It means US oil producers are now having to PAY refineries to take the oil away, because they simply aren’t able to, or can’t afford to store it!
At one point yesterday the producers were paying $40.32 per barrel to have buyers take it away from them!
Many governments around the world are totally reliant on oil revenues, and much — or all — of their income income just evaporated in an instant…
The world’s largest oil producer is the United States. I think we will very quickly see Trillions upon Trillions of dollars of “bailouts” coming, which is terrible for savers, and could potentially start a hyperinflation of the dollar.
Isn’t this just a US problem?
No. We live in a global economy and the pound – just like pretty much all other “fiat” currencies – are backed by the dollar!
I can’t stress how big this is.
Oil producers are pumping oil out of the ground — and spending a massive amount of resources to do so — and then paying refineries to take it away!
Why?
Well, there is a whole supply chain which exists on a massive scale.
Even if they could just instantly turn off the pumps — which I’m not entirely sure they can — they can’t just shut it off like a switch, because there are pipelines and huge tanks which are full. There could also be governmental regulations I don’t know about that require them to keep pumping…
Either way, there is a LOT of “above ground” oil and nobody wants it!
The producers need to get rid of it. And as they can’t sell it, or even GIVE IT AWAY because there is no demand, the US producers are having to pay people to take it.
But as a conversation promoter I thought this was worth sharing.
———————
Yesterday the world changed forever.
It will go down in history as “Oil Armageddon”. What happened yesterday has never happened before in history.
It’s the kind of event that creates wars and revolutions, and BTST Members need to know about it…
So what happened?
When oil started trading yesterday in the US, the price was around $18 per barrel.
Throughout the day it proceeded to fall off a cliff by completely crashing by more than $50 to *MINUS* $40.32!
What does that actually mean?
It means US oil producers are now having to PAY refineries to take the oil away, because they simply aren’t able to, or can’t afford to store it!
At one point yesterday the producers were paying $40.32 per barrel to have buyers take it away from them!
Many governments around the world are totally reliant on oil revenues, and much — or all — of their income income just evaporated in an instant…
The world’s largest oil producer is the United States. I think we will very quickly see Trillions upon Trillions of dollars of “bailouts” coming, which is terrible for savers, and could potentially start a hyperinflation of the dollar.
Isn’t this just a US problem?
No. We live in a global economy and the pound – just like pretty much all other “fiat” currencies – are backed by the dollar!
I can’t stress how big this is.
Oil producers are pumping oil out of the ground — and spending a massive amount of resources to do so — and then paying refineries to take it away!
Why?
Well, there is a whole supply chain which exists on a massive scale.
Even if they could just instantly turn off the pumps — which I’m not entirely sure they can — they can’t just shut it off like a switch, because there are pipelines and huge tanks which are full. There could also be governmental regulations I don’t know about that require them to keep pumping…
Either way, there is a LOT of “above ground” oil and nobody wants it!
The producers need to get rid of it. And as they can’t sell it, or even GIVE IT AWAY because there is no demand, the US producers are having to pay people to take it.
