Oil is down 10% this week (so far). This is being caused by FAKE!!! orders that have been placed at the NYMEX where traders pretended to demand hundreds of millions of barrels of oil in order to inflate prices during the summer. Now they are suffering for their scam as the physical inventories have filled up and they are forced to roll (now 5% of the contract cost per month) or cancel their fake orders when there are no buyers present . In other words, this is EXACTLY what I told you would happen when oil was at $107 in June ! As I said at the time: Forget peak oil, we're seeing PEAK DEMAND for oil pass us by! Keep in mind that the non-OECD line on the chart above is just 1/4 of all demand and that is barely positive while OECD demand (66M out of 90Mbd demand) has been NEGATIVE since 2008 with the very brief exception of 2011 but, of course, that was only up 2% compated to 2010, which was flat to 2009s 5% decline . In other words, the demand NEVER CAME BACK but that fact is being covered up by a cartel of Billionaires who own the supply of oil as well as the media that they control ( see excellent History Channel report on the subject ). As I noted yesterday, the "demand" on the NYMEX for 172M barrels of oil that is scheduled to be delivered to the US in July is completely and utterly FAKE and those contracts will almost all be cancelled by next Friday – purposely shorting our country's oil just at the start of summer driving season. Our play at the time was shorting the /CL oil futures at $107. At $47, those shorts were already up $60,000 per contract and, for non-futures players, I …
Oil is down 10% this week (so far).
This is being caused by FAKE!!! orders that have been placed at the NYMEX where traders pretended to demand hundreds of millions of barrels of oil in order to inflate prices during the summer. Now they are suffering for their scam as the physical inventories have filled up and they are forced to roll (now 5% of the contract cost per month) or cancel their fake orders when there are no buyers present.
In other words, this is EXACTLY what I told you would happen when oil was at $107 in June! As I said at the time:
Forget peak oil, we're seeing PEAK DEMAND for oil pass us by! Keep in mind that the non-OECD line on the chart above is just 1/4 of all demand and that is barely positive while OECD demand (66M out of 90Mbd demand) has been NEGATIVE since 2008 with the very brief exception of 2011 but, of course, that was only up 2% compated to 2010, which was flat to 2009s 5% decline.
In other words, the demand NEVER CAME BACK but that fact is being covered up by a cartel of Billionaires who own the supply of oil as well as the media that they control (see excellent History Channel report on the subject). As I noted yesterday, the "demand" on the NYMEX for 172M barrels of oil that is scheduled to be delivered to the US in July is completely and utterly FAKE and those contracts will almost all be cancelled by next Friday – purposely shorting our country's oil just at the start of summer driving season.
Our play at the time was shorting the /CL oil futures at $107. At $47, those shorts were already up $60,000 per contract and, for non-futures players, I…
