Oil Prices ….. More Proof We’re In A Global Recession!

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Oil prices seen staying low next year as demand weakens

PARIS (AP) — The head of the International Energy Agency expects oil prices to remain low next year as demand weakens and supply remains high.

The price of oil fell this week to its lowest since early 2009, when the global economy was deep in crisis. The U.S. benchmark recovered 1.6 percent at $38.08 on Wednesday.

Fatih Birol, executive director of the IEA, which represents oil-consuming nations, told a news conference on the sidelines of the U.N. climate conference in Paris: “When we look at 2016, I see very few reasons why we can see growth in the prices.”

He warned, however, that investment in production is due to drop for a second consecutive year for the first time in 30 years. He noted that could cause “surprises” in supply in the future.

The house of cards continues to crumble. 

The cheap fuel only serves to pull down the façade.  No one is doing anything.  All of the governments’ debt is predicated upon people continuing to do more and more stuff in the future. 

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6 Responses to Oil Prices ….. More Proof We’re In A Global Recession!

  1. Latitude says:

    ..are the Saudis still cranking out oil to flood the market?

    • suyts says:

      Yes, but, there are ulterior motives. It weakens the Shia/Iran.

    • DirkH says:

      They pump like crazy yet will have a budget deficit (or are already in deficit) because of low prices combined with welfare costs.

      BTW one fallout is that Wall Street banks are bleeding billions as they have to pay out the hedges American drillers had put up against low oil prices. And, once the hedges expire which they will one by one, the bleeding of the banks will slow but the drillers will be the ones bleeding- so you either get a bunch of Lehmans or a collapse of the drillers, likely both!

      This can be prevented by only ONE technology: The Printing Press.

  2. DirkH says:

    Hold on to your cash and get ready for Everything-must-go-away liquidation prices!
    Business inventories to sales ratio is climbing and already in economic-heart-attack regions!
    http://www.zerohedge.com/news/2015-12-11/business-inventories-sales-surge-cycle-highs-deep-recession-territory

    • DirkH says:

      AND: by boycotting to buy anything NOW you can personally contribute to bring about the very liquidation we’re all waiting for! Shoppers for a better future, unite and boycot everything!

    • suyts says:

      Yes, we’ve been observing the inventory rises for a while now. It’s just a matter of time, there’s no fixing this. Of course, the Fed being poised to raise the interest rates will be interesting to watch.

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