Oil Panic The Three Myths Driving the Market Wild
Below is a MRR and PLR article in category Business -> subcategory Other.
Oil Panic! The Three Myths Driving the Market Wild
Summary:
Oil is the most widely traded and corrupt commodity globally. Producers, with the help of the financial media, are profiting at our expense.
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Keywords:
oil panic, oil supply worries, dwindling oil reserves, hedge fund manipulation
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Article:
Oil is the most heavily traded commodity in the world, and unfortunately, it is also rife with corruption.
Consider the past two years: We’ve been inundated with images of burning oil pipelines in Iraq, traffic congestion in Shanghai, and hurricane damage in the US. These stories, replayed repeatedly, aim to create a narrative of an impending oil crisis.
OPEC claims they can't meet rising demand. Experts discuss China's seemingly insatiable appetite for oil, warn of gasoline and heating oil shortages, lament the lack of new oil discoveries, and predict our reserves will be dangerously low within two decades.
Now, the market is anxious about Iran potentially withholding oil. But realistically, Iran needs our money just as much as we need their oil.
Crude oil prices soared from $25 to a peak of $72 per barrel. Currently, it stands at $66, with media speculating a continued rise to $150 and gasoline to $5.30 per gallon.
Before you trade in your SUV for a car with less power than a hair dryer, consider the true story. Let’s debunk three pervasive myths:
MYTH
1: Demand Far Exceeds Supply
The International Energy Agency (IEA) reports, widely trusted in trading, reveal otherwise. Global inventories have increased to near-record levels since the Iraq invasion. Rising inventories contradict the notion that demand outpaces supply.MYTH
2: China's Insatiable Oil Demand
In 2004, China increased imports by a modest 900,000 barrels per day against a global consumption of 20 million barrels daily. In 2005, China’s imports actually decreased. Yet, the narrative persists, overshadowed by profitable headlines.MYTH
3: No New Oil Discoveries
The Department of Energy estimates world reserves at about 7.6 trillion barrels. Since 1971, only 767 billion barrels have been consumed. Recent discoveries in West Africa, the Gulf of Mexico, the South China Sea, and the Falkland Islands alone equal half of the world’s consumption to date.An oil crisis? Hardly. The world is awash in oil, enough for the next 400 years. When was the last time you heard of a real shortage?
So, who benefits from these inflated prices? The answer is predictable: oil producers, companies, and speculators, particularly hedge funds, are reaping the rewards. Supported by complicit financial media, they profit enormously while everyday people like us pay the price.
Our politicians have allowed this to happen, just as they did during the tech bubble and the collapse of financial markets, leading to massive losses in personal savings and pensions. Now, they remain passive during this oil price manipulation.
What Can You Do?
If our leaders won’t act, we must. Start by sharing this article with your elected representatives and demand accountability. Advocate for banning hedge funds that manipulate markets for selfish gain, hurting consumers in the process. Share this information with friends and encourage them to take action too.
Additionally, be cautious with your finances. Don’t blindly trust Wall Street. Protect your job and pension. Have a backup plan and explore secondary income opportunities. For practical advice, visit [Techno Twerp](http://www.techno-twerp.com). In uncertain economic climates, it's critical to be prepared.
Robbie Pugh - All Rights Reserved
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