Why Oil is collapsing
- Iran has gone Rogue and is refusing to discuss cutting production while ramping up as hard as possible. This WILL continue because Iran has some of the lowest production costs per barrel in the world, the cheap stuff always flows first. Industry experts say as little as a $1 bbl, I think it’s $2.5-$3.5, but hey, that’s still very cheap.
- While Iran is pumping all out to gain market share and gather cash, Saudi Arabia will be doing the SAME thing. That is a promise you can take to the bank.
- Russia must produce into this glut because ebergy sales are a substantial source of foreign currency. Putin has already taken all the steps he can take, to reduce his need for this money, and he is still bleeding.
- US producers will still be expanding the production base in the Scoop and the Stack until the prices reach the low 30’s or maybe even the high 20’s. Natural gas will stay cheap as well.
- Venezuela and the rest of OPEC will lie and proclaim cut agreements while each one is secretly selling every barrel they can get cash for.