peripato wrote:This release of less than one day's worth of global consumption was done in an environment of record inventories and falling demand (hmm, I wonder if the two might be linked in some way?). Prices were already on the way down, this action is just a stunt to cover the fact that the US and by extension, world economy, is slowly but surely sinking back under the mire and that the Great Recession Part Deux would have caused the oil price to drop anyway.
There is no "road trip" for the US and global economy going forward. Instead of a party, there will be a wake, as the black hole that was the old FIRE economy sucks more and more people, businesses and ultimately countries into its bottomless pit of deflation. In fact this process will only accelerate as it builds momentum.
So it sounds like you're saying the fed should print money to pay off the debt and that we're facing deflation rather than hyperinflation. I'm taking away your doomer card.
Certainly you are correct, Peripato; but just like November 2009 there is a small window to load the Honda and do some family camping. The low prices should be fully kicked in by the end of July so it'll be perfect timing once again. I find it odd that the President is acting on his own without Congress quite a bit lately, in apparent fits of desperation. So it's likely that the light at the end of the tunnel is a train coming the other way.
Honestly, I think it's a diplomatic move, coordinated with the IEA, to try and scare Iran. The former CEO of Royal Dutch said 60 million barrels of oil has very little impact on oil prices.
My target oil price for the end of the year is $100-$110. Oil prices will remain high and remain the limiting factor on the economy, but it doesn't mean we're going into a crash. Just more stagflation, doom and gloom, etc until we move on to a better energy technology.