RE:SAUL,Remember 2007 derivatives crash, way too many speculators creating, selling, buying derivatives on the presumption markets would only go higher or they could flip at a higher price.......when the trade went against them, they sold at what every price to avoid an even bigger losses.....aka.....Oversupply and much needed flush and market correction.
Remember 2007 housing crash, way too many speculators buying 5, 6, 7 etc. (0% down), on the presumption they could flip them for a higher price....aka....Oversupply and much needed market correction.
Now Oil......Yes, there is an oversupply of oil all of a sudden, but I believe, there was way too many futures contracts written on the assumption oil would only go up.....now that these futures contracts came due and contract owners (let’s call them Oil-Badholders) had/have obligation to purchase oil at 120, 110, 100 etc., as oil was falling below 100, 95, 90, 85 etc……The $120, $110, etc. Oil-Bagholder had to dump their contracts at where ever price they could to avoid ever bigger losses…this started a cascade affect where no-wanted to hold oil-futures and had to keep selling to avoid even bigger losses and oil hit a low of $45…aka…..It is my opinion, the flush and market correction has completed.
Law of Unintended Consequences: The OverSupply was over-exaggerated and should of never gotten as low as $45, but it did, due to all these Futures Contracts being dumped……Unintended Consequences are Rigs reductions, Billions in Cap-Ex Reductions, projects halted, no new projects for the next decade……..I believe the same Shysters who forced oil to $45 will force it back to $100 soon enough(before end of 2015)
TakeOver….I think it will happen, media don’t report it unless they know something…..COS getting back to $20 (TO or not) before year end, is a no-brainer.