but here's the number one chart of all of this that I wanted to show you this is such a cool chart this when I found out go this is the Highlight chart of this entire video I believe that most investors have it completely wrong the way that they're looking at oil and that's leading them into some risks that they should not be involved with also missing it on some opportunities I'm going to show you what really moves oil prices and it's not what you've been told it's not supply and demand we'll


get into a whole bunch of stats I'm going to show you a different outlook on the way that you can appreciate oil and position yourself to profit as it rises and Falls both of which are going to be happening in the coming weeks please subscribe to get our next actionable video everyone's going to be telling you that supply and demand is what dictates oil prices or moves them that's uncategorically not the case there's a room of traders in London there's a room of traders in Manhattan


and they're dictating what the prices of oil are going to be because they're speculating on it they're trading oil for where they expect prices to be so when a war breaks that that war doesn't increase oil prices it causes the people who are deciding the price of oil to pay more for oil in the future and that's why oil prices then rise so you've got speculators hedgers and then thirdly you've got supply and demand which also affects oil prices but it's not the be


all and end all that everybody seems to believe it is there are two main price drivers for oil right now both of which are Polar Opposites and this goes into the video I made a few months AO ago the oil Spike and fade oil is the most common liquid on the planet after water but right now the economies of the world are slowing down and so there is every day a pull lower on oil we need less and less oil than the price would imply right now there's a huge risk premium because of the Wars breaking out so


prices of oil are a lot higher and also because of the risks of what could happen and the uncertainty so yeah you're going to pay more for oil but in terms of just the demands on oil based on how much the world's using that is diminishing rather quickly so you've got a sliding price of oil every day being pulled lower every day but then you're prone to these spikes where a big macroeconomic event breaks out or some kind of conflict expands and you got these spikes there's going to be a


lot of short-term spikes significant spikes in oil prices while it's continually pulled lower over time this is from World meters the current supply of all known barrels of oil in the world even underground is 1. 65 trillion in terms of known reserves meanwhile the current demand is 97 million barrels per day and you guys know I always talk to you about the Reserve Life index rli how many years are the current extraction rates will this resource remain so if you talk 1.65 trillion known barrels and reserves globally then


you're looking at 97 million barrels being used up every day that would give you about 47 years years however the information from World meters that I have here is from 2016 that's 8 years ago and while year to year things don't change that dramatically so it's okay to use something like oil from 8 years ago but take 47 years of remaining Reserve Life and take off eight years from that we're looking at 39 years and when do oil Wars really seriously break out it's not when


there's one year left it's not when there's 10 years left 20 years you're getting warmer there will be major military escalations more and more as o becomes more and more scarce and interestingly they say now we use about 97 million barrels of oil per day when I first made the Peter leed's World oil depletion clock worldwide we were using about 85 million barrels per day now that number is up to 97 million probably even above that now but I'll put a link below if you want to see the


Peter Le's oil depletion clock basically counting down the time that's left before the World goes to O day or the day where there's no more oil available call it zero day if you want there will be no oil there's going to be Wars breaking out because of it there's going to be risk premiums there's going be Major Distribution issues there's going to be major hoarding issues and to back up my comments about the things that really drive oil prices this is from Investopedia talking about investor


sentiment the other key factor in determining oil prices is sentiment the mere belief that oil demand will increase dramatically at some point in the future can result result in a drastic increase in oil prices in the present the speculators and hedgers alike snap up oil's Futures contracts of course the opposite is also true the mere belief that oil demand will decrease at some point in the future can result in a dramatic decrease in prices in the present as oil Futures contracts are sold which means that prices can


hinge on little more than Market psychology that's my point and I'm going to be working on stocky as my next book but not for a few years so so just keep that in the very back of your head but what I'm trying to say is that oil prices are not dictated by supply and demand and oil prices are not dictated by supply and demand they're dictated by decisions of the people who are speculators in the space and then everybody follows that so if the speculators suddenly Panic that oil prices are going to be going to the moon


and they all buy up oil prices that's why oil prices rise but I want to talk about the US strategic petroleum reserves of the sprs the purpose of these which apparently has been lost is for the times of utmost need times of War times when we need oil to defend the population but we don't have any oil but instead it's been used recently for political gains where Biden wanted to get some more votes so he released a bunch of oil to make oil prices less expensive for people Insanity you get some votes but


then you've got way less oil on the Strategic petroleum reserves so so let's look at a chart of this one year looks like the sprs are being rebuilt or reinflated pretty aggressively but not if you pull it and look at a 10-year chart we used to have a lot more we were in a lot more secure situation you help yourself and people just like us when you click the like button now this is from best diplomats the top 10 countries with the largest oil reserves in the world starting with Venezuela Canada comes in fourth United


States comes 10th but let's talk about the real Powers behind the scenes that are controlling oil prices and that's OPEC here's a list of all the countries in OPEC from Algeria Congo Equatorial Guinea to places like United Arab Emirates and Saudi Arabia and Venezuela but then you've got OPAC plus which is basically Russia Mexico Kazakhstan and Oman and then a bunch of others that each have production of less than 1 million barrels a day all of plus put together results in 16.5 million


barrels of oil per day but of that 16.5 million 10.3 million are just attributable to Russia and if you take out the OPEC plus you look at just OPEC they're producing about 28.7 million barrels per day OPC plus 16.5 million barrels per day and you can see from this chart the different magnitudes of each country which is producing oil from OPEC and OPEC plus and here's a chart of found from Rebel capitalist big oil is a circle which is engulfing all the other Raw Metals markets each of these circles represents


how large each of the metals markets is and then oil encompasses engulfs all of that together in terms of comparative size but here's the number one chart of all of this that I wanted to show you this is such a cool chart this when I found I go this is the Highlight chart of this entire video is from Deep knowledge investing and it's about the Petro dollar transer from exporter of goods to importer of goods prior to the Petro dollar system we were a net exporter of goods now we are a net


importer of goods we export dollars and we import cars and phones you know I always tell you that America used to be the manufacturing Hub of the entire world and now China is taking over that mantle while we're just putting our money out to buy all the stuff that they're making and this chart says it all how we went from a production Surplus to a production deficit and now we've got an ongoing negative balance of trade we're just pushing away our GDP to other countries and just taking the stuff that


they're making and we're importing everything mainly because we have the Petro dollar status which is holding our currency in higher regard around the world than it otherwise should be but I'll tell you exactly what I'm going to do with this big oil rethink where you need to understand the two things the main drivers of oil are pulling in different directions macroeconomic events like War declining global economy they're pulling in different directions it's going to be incredibly


difficult to play oil prices with any certainty so I'll tell you what I'm going to do personally I'm not giving you personalized trading advice the Peter leads newsletter is one of the most popular financial publications of all time what I'm going to do is look to unload some of the oil companies that are doing very well for me right now but not yet I'm going to give it a couple of months and sort of look for opportunities to unload some of these just to go to Cashmore to be ready for


this big stock market meltdown which is going to happen and it may take down some of the precious metals companies and some of the oil companies as well and I want to get some of the money off the table out of oil before that happens precious metals I'm just going to let that ride no matter what happens but you're going to want to be in a heavy cash position to take advantage of all of these tremendous opportunities which are going to be showing up all over the place and it'll happen where one day it


just happens and all of a sudden everything's red on the screen and then we have a hard time recovering out of that and it just gets worse and worse and people say well maybe it'll bounce back and they wait longer and then they blink and you're looking at down 80% on some of these stocks you're definitely going to want to keep an eye on this with me I'll help you as much as I can that's why you subscribe to this Channel and please become a Peter leads Insider Peter leads.com


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