by Michael Smith (Veshengro)
October 2014: Oil prices are at an almost all time low for the last decades but does that mean that peak oil is not real and that more oil is being gotten out of the ground? No is the answer, plain and simple.
Some oil producing states have reduced the prices, actually, and the US has increased, so it is said, its production of oil and especially of shale oil. But what no one mentions is that fact also that some of the Western nations have, once again, put strategic reserves onto the market in order to create some more smoke and mirrors.
Furthermore the fall in prices, and the reduction in prices by some producing states, is also due to some large extent to the lack of demand for oil as economies, including the Chinese one, are still shrinking, despite what the powers-that-be like to make us believe.
While the oil price is falling indeed almost daily the reason is not that there is more oil sloshing about on the market but that many producers are reducing their prices because of the economy of most of the developed and developing nations still being in the doldrums the price reduction is due to the producers needing to sell their oil in some way. Thus they have to cut the price.
Don't believe what you hear and read and what you see about this on the TV. There is not so much more oil sloshing about; there is just a lot less demand and there are strategic reserves that are being used also.
While the fall of the prices may be good for consumers, such as drivers, and it may, if the energy companies will allow it to happen, also be good for energy consumers, it shows that the economy is not happy and that we better prepare for yet another crash to some in the not too distant future.