The oil price collapse is OPEC's way of squeezing
Post# of 9903
Posted On: 12/12/2014 10:17:47 AM
Re: bigmoneytrader #5559
The oil price collapse is OPEC's way of squeezing US shale oil producers as they need a higher oil price to make producing oil by that method economically viable.
This is why OPEC did not cut it's production levels at it's recent meeting. There's a glut in oil production at the moment since the USA started producing shale oil.
Quite simply supply outstrips demand. Also the price of gold is holding steady at these levels as demand from India and China has stalled due to weakness in their economies.
When pressure comes to bear on the Dollar again, the gold price will rise again as people buy gold to hedge against the falling value of the Dollar.
That's what I believe any way.
This is why OPEC did not cut it's production levels at it's recent meeting. There's a glut in oil production at the moment since the USA started producing shale oil.
Quite simply supply outstrips demand. Also the price of gold is holding steady at these levels as demand from India and China has stalled due to weakness in their economies.
When pressure comes to bear on the Dollar again, the gold price will rise again as people buy gold to hedge against the falling value of the Dollar.
That's what I believe any way.
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