gold news

 there's going to be a glut of oil prices are therefore going to come down there's going to be too much oil not enough demand it's all playing out right now besides military conflicts in the Middle East for example there's not a lot actually insisting or suggesting that oil prices would go dramatically higher anytime soon and that they're actually going to be declining over time as I've been telling you for quite a long time now besides the spikes from the military events they're going to be declining

over time very anti inflationary it's very good for the economy as oil prices get lower for the global economy but as you'll see in this video that's part of the problem the global economy which is bringing oil prices down as it deteriorates or slows down is going to actually lead to lower oil prices which will then allow the economy to function more efficiently and for Less cost one of the biggest players in the whole oil Market is Saudi Arabia of course that's where most of the oil comes from and

they recently changed their strategy they're trying to get to $100 a barrel oil because they make more money and they can produce oil very inexpensively especially compared to every other country in the world but they've given up on the higher priced oil and they said that we're going to start working on gaining or renewing our market share we're going to lower prices we'll produce more oil put more oil onto the market that's going to bring prices down going to put a lot of

pressure on all of our competitors other countries other oil producers and generally make the long-term outlook for Saudi Arabian oil production even better putting some squeeze or some pressure on your competition gobble up or retain market share get it back that's exactly what's happening so they go from constraining the supply to adding to the supply and OPEC actually just recently cut their Global oil demand forecast from 2 million barrels a day in 2024 to 1.7 million barrels A Day in 2025 so in

other words just that math there translates to an extra 300,000 barrels of oil each year and talking about another country that uses a tremendous amount of oil that's China and they have recently said that their crude oil imports have fallen by 3% year-over-year and expect that Trend to continue as their economy continues to slow down there was a lot of talk of the Chinese government issuing some stimulus to try and revive the economy and they didn't do as much as was expected and that's

what caused oil prices to fall a little bit more that day but China is moving away from diesel powered engines they're going more towards electric vehicles renewable energy and liquid natural gas as their fuel source of choice but China was bringing in 650,000 barrels of oil and Revis that down to 580,000 year-over-year and the OPEC nations along with OPAC plus they've identified that they've got about 5 million barrels a day of spare capacity right now today every day five million barrels that's

where they're at and when you have spare capacity and you keep producing it it has to go somewhere and then you've got more and more spare capacity until the demands turn around which they're far from doing as I'll explain to you in this video and from my oil Spike and fade video I explained how it's the military events that dramatically suddenly Spike oil prices and then there's an ongoing pull lower as the economy slows down the demands slow down the production increases a spare

capacity builds up but there's a ton of uncertainty about what kind of response Israel would have against Iran and would they hit their oil refineries and when Israel came out with a statement that they're not going to hit the oil refineries the prices of oil just dropped and that is also a risk premium that was built up built into the price of oil and that risk premium was ripped away and that's why the prices came down like they did is down about 4% on the day and while we're talking about

military the other thing you want to keep an eye on couple of things is there going to be American Military involvement in the conflict with Iran and that leads into the other thing which could happen with America being involved and also without America being involved and I've told you about this ages ago the straight of hor if that gets shut down which could easily be shut down by Iran if they decided to do that just just look at the houie rebels in Yemen the effect they're having just

once in a while may be sinking a boat and that's changing entire logistical flow of goods around the world if the street of Hormuz gets closed or even if there's threats of it you'll see oil prices Spike very significantly how high would prices go who knows but no matter what take that Spike as an opportunity to take any profits or sell any shares you want to get out of because once the spike Fades once the shock Fades that's when gravity sets back in and pulls prices lower gravity being the demand

Trends the production Trends the Surplus stock piles and the increasing economic weakness globally the International Energy Administration also says that they're expecting lower oil demands they're citing significantly slowing growth worldwide and at the same time you've got the dollar having tremendous strength lately here's a chart of the dollar Index at dxy you can see in the very recent time period how the dollar has strengthened dramatically in a short time to a 10- we high and as the dollar

strengthens that makes it more valuable more purchasing power and it makes things like Commodities seem to Cost Less which is funny because no one's realizing how much gold prices are moving because that happened over a Time recently when the dollar was increasing in strength making it take less dollars to buy gold and here's a chart from Trading economics this is the change in crude oil stocks not stocks like investment stocks but like inventories this is the change in crude oil inventories in the Energy Information

administrations talking about us crude oil inventories on October 9th they were expected to be a decline of 2 million barrels but the actual result they got was an increase of 5.8 million barrels that's how offside a lot of people people are there thinking we're expecting oil supplies to be used up and stock piles to fall and then you get whipsaw or shocked where it's not down 2 million barrels it's actually up 5.8 that's a lot of oil not being needed a lot of oil not being used so what does

this all mean for you and how do you act or benefit based on this information well one thing I'm doing personally and I'm not going to tell you what to do it's not trading advice it's all opinion only I I'm using any kind of strength and oil to move out of a few of my energy companies although I'm keeping many of them because you need to have exposure to oil because something can happen in an instant the straight of hormo shuts down boom all of a sudden you're going to want to be owning oil

stocks it's the second most common liquid on the entire planet and we're finding other new ways new technologies to avoid using these energy sources that are not renewable and instead moving more towards Renewables and as many economies around the world Germany America Next will be in recession Canada's in recession Ireland a lot of nations in the Euro Zone China's having trouble now all of a sudden all these pulls towards oil are winning away or slowing down and they'll recover they'll come back one day but

first we're going to go through a time of what I believe is going to be recession a time of oil prices coming down even beyond the influence es of things that happen with the uncertainty and the risk premium the war premium and military conflicts around the world I believe that oil prices are on a trend or path much lower besides that there's not a lot of forces that are going to be lifting oil and thus not a lot of forces that are going to be lifting the stocks that benefit from oil prices increasing

you're going to want to keep an eye on this because when it changes and it starts going the other way you're going to want to jump on that because that could be if we see a capitulation point and oil there'll be a time where it's just back up the truck and load up and that's going to be a tremendous trade just like this has been with gold just like the tremendous trade right now will be silver next it'll be oil but first oil has to go lower that's why you're going to want to connect with me become

a Peter Leeds Insider so that you get this information right when I'm looking at it and also subscribe to this Channel please you guys will love it we' got lots of great videos coming out next one is going to be the silver squeeze part three