Oil prices have been in a free fall the last couple of weeks and most pundits and talking heads have been pointing to Saudi Arabia as a culprit. I have news for you folks while the Saudis could reverse the slide by a simple production cut, there two market forces that are behind this.
First, we have too much oil being produced in the world right now and that’s mostly due to Fracking! So when you fill up with the cheapest gasoline in about 6 years. You can thank fracking for that.
Second factor is to reduce global demand for energy. Now most of the world is still hurting economically. With that, comes less demand for oil at a time where we’re producing too much.
Eventually the free market will prevail and prices will go back up
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