pull over dat ass too fat
kiwifarms.net
- Joined
- Mar 3, 2019
It's not a panic reaction, it's just been kept afloat in a zombielike state by the US gov buying it up. this shit is a burden to store now. There's an oil price war between Saudi Arabia and Russia. This caused a rapid & large surplus in oil for other countries which produce oil. The final collapse was inevitable, the US was just trying to lighten/delay the fall imo.This should have happened 2 months ago when China stopped production, IMO it's a late panic reaction on the news that everybody is full tanks on oil ATM.
For anyone who cares, it's not that the oil is worthless, it's that nobody wants to slow production (should have happened 2 months ago).
the more concerning part to me is that there's a huge surplus of something that's worthless (and I'm gonna double down and say it really is worthless until either the virus is abated or the oil war lets up) while consumers lack cash and aren't buying shit. all of this indicates a deflation, but the stock market has been chugging along with inf QE. also the gold price is so fucking weird, that shit normally follows oil. the fact that it saw significant gains while oil went negative is unsettling, though I'm not sure yet what it means. my guess is that people with money are looking to get liquidity.