by John Ward
Anyone looking to oil as a long-term hold in 2017 needs to examine the realities more closely. The glut can no longer be denied – while the rise of electric vehicle power spells big trouble for Arabs, Islam, stock markets, frackers and the Pentagon.
Some so-called “market movements” on the bourses of the world are so clearly idiotic, one has to just keep on bashing away at the issue until some of the innocents finally wake up. By far the most brazenly obvious is the continuing attempt to keep the price of oil high – while at the same time pretending that “the world is finally returning to growth after the shock of 2008”. This process is, respectively, mendacious and complete tosh.
Fifteen months ago, I posted an analysis showing that there is an oversupply problem either side of the refining process.
At that time I wrote:
‘It is certainly true to say that refined oil production has been barely affected, but pull-through is no more than an indicator – especially in an environment where very soon stock build will put storage infrastructure under pressure and could see floating storage become profitable again.’