Commodity Trade Mantra

Posts Tagged ‘Cheap Oil’

Oil - The Black Gold Loses Glitter

If oil stays low, it may turn out that entire U.S. oil boom was just one of many Federal Reserve inflated bubbles. If it pops, the job losses & debt defaults that would ensue could have a far greater impact on the economy & the credit markets than ever before. Ultimately then, QE 4 may need to be much larger than QE1, 2 & 3 combined!

Why OPEC Will Tolerate Cheap Oil

While the current dip in energy prices clearly does hurt Saudi Arabia, it hurts her enemies far more, particularly Iran & Russia, which has been a key enabler of Iranian power. Putting pressure on Russia has also become a key strategic interest of Washington. Cheap oil likely will protect & increase Saudi Arabia’s oil market share.

Cheap Oil A Boon For The Economy? Think Again

Tumbling oil prices are a bonanza for global stock markets, provided the chief cause is a surge in crude supply rather than a collapse in economic demand. Roughly one third of the current oil slump is a shortfall in expected demand, caused by China’s industrial slowdown and Europe’s austerity trap.

The Shale Oil Boom is More of a Mirage than a Miracle

Shale oil plays are going to be probably much less than a 10-year flash in the pan. They are very dependent on a lot of different things, including low interest rates and the ability to keep borrowing – which could turn around very quickly. Lower oil prices would tend to do the same thing.

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