By EconMatters We discuss the oil market in a comprehensive manner in this video, and lay out why the economics of the oil market are not correctly aligned right now. The world Oil Market was not set up for both the Middle East and the United States to be pumping at Record Levels! Conclusion: All we have done is kicked the can down the road a little further just like all the other half measures governments, agencies, industries, companies and financial markets do to avoid facing the nasty, hard reality that ultimately will have to be addressed where people take haircuts, lose money, and real pain is felt. The oil market is not fixed, we have made no progress whatsoever is addressing the poor fundamentals of the oversupply of the product versus the global demand for the product. This is basic economic theory: Oil prices need to go down further and stay there until oil producers stop producing oil and go out of business in the free market producing countries. Lifting of US exports and OPEC short term cuts are only delaying the inevitable, because global demand is not going to be robust enough for the world oil producers to all stay in business, and we "grow" into a supply/demand oil market balance scenario. At least not in the next five years.
EconMatters considers the following as important: Business, Central Banks, Chronology of world oil market events, Deficit Spending, Economy, fixed, Middle East, oil sands, OPEC, Organization of Petroleum-Exporting Countries, peak oil, petroleum, Petroleum industry, Petroleum politics, Price of oil, Reality, Twitter
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We discuss the oil market in a comprehensive manner in this video, and lay out why the economics of the oil market are not correctly aligned right now. The world Oil Market was not set up for both the Middle East and the United States to be pumping at Record Levels!