OIL DROPS BELOW 45; U.S STOCKPILES MAY SPEED COLLAPSE

[Wiljor]

Oil extended losses to below $45 a barrel amid speculation that U.S. stockpiles will increase, exacerbating a global supply glut that’s driven prices to the lowest in more than 5 1/2 years.

Futures fell as much as 4.1 percent in New York, declining for a third day. Crude inventories probably gained by 1.5 million barrels last week, a Bloomberg News survey showed before government data tomorrow. The United Arab Emirates, a member of the Organization of Petroleum Exporting Countries, will continue to expand output capacity, while shale drillers will probably be the first to curb production as prices fall, according to Energy Minister Suhail Al Mazrouei.

Oil slumped almost 50 percent last year, the most since the 2008 financial crisis, as the U.S. pumped at the fastest rate in more than three decades and OPEC resisted calls to cut production. Goldman Sachs Group Inc. said crude needs to drop to $40 a barrel to “re-balance” the market, while Societe Generale SA also reduced its price forecasts.

Oil Prices

“It’s a classic case of supply overwhelming demand,” said Michael Hiley, head of energy OTC at LPS Partners Inc. in New York. “U.S. production will continue to edge higher. OPEC keeps reminding us that they are going to continue to produce.”

West Texas Intermediate for February delivery decreased 73 cents, or 1.6 percent, to $45.34 a barrel at 9:19 a.m. on the New York Mercantile Exchange after reaching $44.20, the lowest since April 2009. The volume of all futures traded was more than double the 100-day average for the time of day.

U.S. Supplies

Jan. 13 -- Ayers Alliance Securities CIO Jonathan Barratt discusses falling oil prices and what they mean for OPEC and oil-producing countries with Bloomberg's Rishaad Salamat on "On The Move." (Source: Bloomberg)

Brent for February settlement slid $1.45, or 3.1 percent, to $45.98 a barrel on the London-based ICE Futures Europe exchange after touching $45.19. The European benchmark crude’s premium to WTI shrank to as little as 78 cents, the narrowest since July 2013.

U.S. crude stockpiles probably rose to 383.9 million barrels in the week ended Jan. 9, according to the Bloomberg survey before the Energy Information Administration’s report.

“Prices continue to free-fall and there is little that can stop them,” Amrita Sen, chief analyst at consultants Energy Aspects Ltd. in London, said in a report. “OPEC remains the only factor that can stabilize markets in the short term. But with the group out of the picture, the market is looking elsewhere for a tangible reaction.”

U.S. production accelerated to 9.14 million barrels a day through Dec. 12, the most in weekly EIA estimates that started in January 1983. The nation’s oil boom has been driven by a combination of horizontal drilling and hydraulic fracturing, or fracking, which has unlocked supplies from shale formations including the Eagle Ford and Permian in Texas and the Bakken in North Dakota.

OPEC Output

Customer Marcus Rudy fuels his tractor trailer at a Road Ranger gas station in Princeton, Illinois, U.S., on Tuesday, June 17, 2014. Photographer: Daniel Acker/Bloomberg

The U.A.E. plans to boost its production capacity to 3.5 million barrels a day in 2017, Al Mazrouei said in a presentation in Abu Dhabi yesterday. The country currently has a capacity of 3 million and pumped 2.7 million a day last month, according to data compiled by Bloomberg.

OPEC nations can withstand a drop in crude prices while “those who are producing the most expensive oil, the rationale and the rules of the market say that they should be the first to pull or reduce their production,” Al Mazrouei told reporters today.

OPEC, whose 12 members supply about 40 percent of the world’s oil, agreed to maintain its collective output target at 30 million barrels a day at a Nov. 27 meeting in Vienna. Qatar estimates the global surplus at 2 million barrels a day.

In China, the world’s biggest oil consumer after the U.S., crude imports surged to a new high in December, capping a record for last year. Overseas purchases rose 19.5 percent from the previous month to 30.4 million metric tons, according to preliminary data from the General Administration of Customs in Beijing today. For 2014, imports climbed 9.5 percent to 310 million tons, or about 6.2 million barrels a day.

Bloomberg.com

[Texstorm]

I love cheap oil and cheap gas however it's probably not in America's best interest. The oil companies that we have here employ lots of hard working Americans and I'm afraid that eventually there will be some major cutbacks. It appears that OPEC is spearheading this war on global oil prices to drive out competition,  there never has been a shortage of oil and there never will be, may be a thousand years or so. The only problems that we face here in the U.S. is our governments strict regulations. Do y'all realize that we have not built an oil refinery in more than 40 years, I really wish that the U.S. government would put less restrictions on the oil companies so that we can put Americans back to work. If there is a spill make them pay for it it's just that simple. I know that there are a lot of alternative resources of energy but these things will never happen anytime soon, nor will the big oil companies really allow it. What America needs is to is to put our great work force back to work and do what we do best....that's the American dream !

[zzztop]

I'm sorry the oil sector might lose some jobs, but that's life.  The savings to damn near every American will boost jobs everywhere else across the country.  I have a landscape company in SoCal.  I'm saving about $600 per mo on gas compared to what I was spending last spring/early summer.  My wife owns a janitorial company and she is saving over $1000 per mo.  If you add our personal vehicles' savings it's almost $2,000 per mo.  That's about $24,000 per year and the price keeps dropping.  We will spend a big chunk of this money in our local economy. 

[Texstorm]

I understand your position and I would enjoy it while it last as I do. But if we allow our reserves to go down then oil prices will rise again. If OPEC drives out competition or causes it's competition to slow down production then OPEC is in control of the worlds oil prices. America does not have to depend on anybody for oil , there is plenty right here on the North American continent and adjacent off-shores .  if we take some of the restrictions off the oil companies, and build new refineries  then we would not  have to be dependent on other foreign nations. This cheap supply of gas won't last long that's a given. Thanks 

[Wiljor]

I agree with you completely Texstorm, OPEC wants to drive down the price to eliminate the competition and put the control back into the hands of the ME. Also oil is much cheaper to extract there as well. Its a planned and coordinated game of chess, so enjoy the current prices because they wont last to long.

I understand your position and I would enjoy it while it last as I do. But if we allow our reserves to go down then oil prices will rise again. If OPEC drives out competition or causes it's competition to slow down production then OPEC is in control of the worlds oil prices. America does not have to depend on anybody for oil , there is plenty right here on the North American continent and adjacent off-shores .  if we take some of the restrictions off the oil companies, and build new refineries  then we would not  have to be dependent on other foreign nations. This cheap supply of gas won't last long that's a given. Thanks

Yep, you beat me to it bro, agreed

[Tripphood]

I don't understand all of this really but if there is plenty of oil then why can't the price of fuel stay reasonable? Like in the $2 range at least. Prolly a dumb question but.......

[puckster_guy]

I'm gonna go off on a tangent here. What if there's a new technology coming around the bend that's gonna make oil/gas obsolete? I'd drop the price of gas to make it competative and delay any conversion as long as possible.The US Navy has posted articles that they're working on or have a motor that'll run on seawater. I'm sure I can find the article if I have to. It was out last summer. Maybe it works.   Just throwing this out there guys. I'm gonna enjoy the lower prices and take my wife out to dinner with the savings.

[SnowGlobe7]

http://www.zerohedge.com/contributed/2014-04-22/us-navy-makes-gas-seawater

http://www.nrl.navy.mil/media/news-releases/2014/scale-model-wwii-craft-takes-flight-with-fuel-from-the-sea-concept

[The Machine]

Water-powered cars have existed for years.

Oil, with its attendant evils - pollution, oil wars, oil spills - are unnecessary.

Water-powered cars have been given scant media coverage. In some cases, the inventors were intimidated into ceasing their work or assassinated. - See more at: http://henrymakow.com/2013/11/Illuminati-Suppress-Water-Powered-Cars.html#sthash.xFSs9Rsj.dpuf

 

Stanley Meyer, who invented a water fuel device, encapsulated the agenda: 'The internationalists want zero industrial growth, zero population growth... There is a move to force countries to sign over their natural resource rights, and if you sign over your natural resource rights, they have taken over the countries without even firing a shot. The number one thing that will diffuse the entire episode is to bring in an alternate energy source.'

Most of the cars use water as a source of hydrogen, which is a very efficient fuel.

Here is a list of men and companies who have invented water powered cars.

Herman Anderson (1918-2004) - Herman had an illustrious career as a scientist at NASA testing hydrogen powered rockets. He used this knowledge to create a water-powered vehicle which he believed would transform the world.

Herman created a water powered Chevy Cavalier (left). See Video


He was allowed to drive it, but was banned from selling or manufacturing the vehicle in his home State of Tennessee. The official reason was that the car gave off too much radiation. However, hybrid cars (that use both electricity and oil) produce a similar level of radiation and are legal. Go figure.
 

In 2008, a Japanese company called Genepax unveiled a water-powered car.  They received a patent for the vehicle in Japan and demonstrated it to the press. The car is extremely efficient, able to drive at 50km/h for an hour on a litre of water. It runs on virtually any form of water too, even tea and soda.

A year after the launch Genepax stopped selling the cars due to lack of funds. They currently have a website that explains how to convert your car to run on water. 
 
Stanley Meyer (1940-1998) - The most famous water car inventor. The American created the 'water fuel cell', claiming that any car fitted with it could run purely on water.  A local television station filmed him driving a dune buggy powered by the device.

The British Advanced Energy Institute reported, 'We recently sent a delegation to witness Stan's work, to really evaluate it, and came back saying "this is one of the most important inventions of the century."'

In 1998, Stanley was murdered. He and his brother Stephen met two Belgian men at a restaurant who claimed to be potential investors. After drinking a sip of cranberry juice, Stanley grabbed his neck and ran outside, where he was violently sick. Stephen recalls, "I ran outside and asked him, 'What's wrong?'. He said, 'They poisoned me.' That was his dying declaration."

The following day Stephen tracked down the Belgian men. "I told them that Stan had died and they never said a word, absolutely nothing, no condolences, no questions." A week after his death, the Feds came to Stan's home and confiscated his car and research equipment.

 
 Steve Ryan's water powered motorcycle - In 2005,  "60 Minutes" featured the inventor Steve Ryan demonstrating his water-powered motorbike. The footage shows Ryan fueling the bike with just water and then driving it 50mph along a highway.

Ryan's firm, BiosFuel were planning to sell motorbikes with the conversions in them. However, the company went quiet before announcing, 'Due to political and economical reasons, we are unable to sell the motorcycles.'
 
The Joe Cell - An Australian man, only identified by the name of Joe "X", has designed an Energy Cell that utilizes water for a fuel.

Unlike the other devices that use water as a source of hydrogen, The Joe Cell uses electrically-charged water as the "gate" or medium through which to draw a special kind of energy from the atmosphere. The existence of this free energy (termed the 'ether') is denied by orthodox science but adhered to by alternative scientists like Nikola Tesla. Ken Adachi explains in detail how The Joe Cell works.

Joe's experiments with various prototypes of his Energy Cell were recorded on amateur videos recorded in Australia from 1993-1997.

Joe X was the victim of threats and harassment that succeeded in stopping him talking. However other researchers have taken his videos and manuals and tried to build the device.

A man called Bill Williams studied the tutorials and claimed that he was able to power his truck using the fuel cell. He shared his findings with a group of fellow enthusiasts online. He explained in detail how he was intimidated into stopping his research:

In 2006, Bill posted this on the group: "I was standing in front of my truck, and this late model 2005 or 2006 Ford Explorer pulled up and parked diagonally in front of my truck.

"The driver got out of the rig and approached me. At about the same time, the passenger opened his door. The driver stated that they wanted me to stop working on all forms of alternative energy. He also stated that we know everything about me, my family, and all my projects past and present.

"At about that time the passenger reached and held up a file that was about 2 or so inches thick. He opened it up and showed me telephone transcripts, emails, messages from the groups that I had belonged to. They knew where my kids worked, the times they are at work; also my wife's working hours, my grandkids' school, etc. They knew everything.

"The driver said that if I did not stop working on this (he then opened up the left side of his jacket and showed his weapon that was holstered) that there would be other consequences. He also stated that he wanted me to post that I was no longer working in this field and to destroy all my work, i.e. cells, drawings, lab journals, everything!"

After a few days of contemplation, Bill decided to abide by the demands: "I thought I was strong but when illness to the family comes into play, I have failed. I am truly sorry. I will not be working in any form of alternative energy field anymore. I destroyed my device tonight along with my written data and lab notes."

CONCLUSION

We are complicit in the suppression of free energy technologies. The truth is right in front of our faces: a quick YouTube search pulls up MANY videos of water powered cars.

If we want free energy we need to stand behind the inventors. As Stanley Meyer once told an audience, 'If me and you could come together in accord, no political institution in the word, no multinationalist groups could defeat us.' - See more at: http://henrymakow.com/2013/11/Illuminati-Suppress-Water-Powered-Cars.html#sthash.xFSs9Rsj.dpuf

Edited January 13, 2015 by The Machine

[Texstorm]

Oh I'm all for clean energy, I just don't think that the oil companies are going to allow it unless they own it. They can buy any and every patent they want and put it on a shelf. When it's all said and done big companies rule our government and ultimately rule us in some shape or form. I guess that you could tell the oil companies that your not going to buy their gas anymore because you have decided to ride a bicycle instead. But seriously oil companies are the ones who will control how fast that we will develop other sources of energy. Thanks

[puckster_guy]

TY Snowglobe Great post Machine

[Deb45]

Ok where do I start?  I'm going to try to be nice about this.  zzztop I'm glad your saving tons in gas but your thinking on this is inaccurate about all of this, and the others that commented about doing away with oil (that's a pipe dream) A steady price on oil is very necessary.  Not too high not too low.  Our economy does not revolve around the landscaping industry. Not that there's anything wrong with landscaping, that's good hardworking way to make an honest days wage.  I like having a nice looking yard but its not a necessity of life.  Our Economy and the worlds economy revolves around oil.  Like it or not, it does and always will till the end of time.  Yes there is new technology, blah, blah, blah.  It's not economical.  The price of oil affects EVERYTHING!  Landscaping does not.  How do I know, we've had a family business in the oil industry for 40 plus years and counting and have seen the trends of up and down years.  Yes, there are good years and there are and have been very, very bad years.  Yes, you might save a few bucks on filling up but soon you won't have a job.  So what's better? Job and pay more for gas or no job and cheap gas?  Don't think it won't happen.  I live in the Houston area.  Oil companies have already announced layoffs & halting projects.  It affects more than just those folks.  The restaurant industry, housing industry, LANDSCAPING industry, services of all types.   Its best to have a robust economy where all kinds of business potential is at hand and thriving than to look like Detroit and desolate.

[The Machine]

Oil companies in the UK (North sea fields) have already started lay off's .............

[Deb45]

There's a very well know furniture company in the Houston area.  The owner does some crazy PR campaigns every now and then, usually with the super bowl.  He'll make a bet that if you buy your furniture between now and the super bowl and a certain team wins you'll get your furniture for free.  stuff like that.  Well now he has made a bet that if you buy your furniture between now and the end of the year if Oil goes above $85 a barrel by 12/31/15, you'll get your furniture for free.  You know good and well he doesn't make offers like this unless the odds are in his favor.  He takes out insurance policies to cover himself but... I'm just saying its not predicted to make any drastic increases anytime soon.  If it would just go to about $60-70 I think it would be enough to stabilize things. 

[Texstorm]

I might note Deb that Mack did payout a large sum last year when he lost his bet. It was something like 5 or 6 million dollars worth of furniture. So nothing is a for sure race horse and one major war could send oil prices through the roof again, and as far as predictions I would say if the war was a long one or a global one, a $150 bbl wouldn't be out of the realm. Thanks 

[FlyHi]

Ok where do I start?  I'm going to try to be nice about this.  zzztop I'm glad your saving tons in gas but your thinking on this is inaccurate about all of this, and the others that commented about doing away with oil (that's a pipe dream) A steady price on oil is very necessary.  Not too high not too low.  Our economy does not revolve around the landscaping industry. Not that there's anything wrong with landscaping, that's good hardworking way to make an honest days wage.  I like having a nice looking yard but its not a necessity of life.  Our Economy and the worlds economy revolves around oil.  Like it or not, it does and always will till the end of time.  Yes there is new technology, blah, blah, blah.  It's not economical.  The price of oil affects EVERYTHING!  Landscaping does not.  How do I know, we've had a family business in the oil industry for 40 plus years and counting and have seen the trends of up and down years.  Yes, there are good years and there are and have been very, very bad years.  Yes, you might save a few bucks on filling up but soon you won't have a job.  So what's better? Job and pay more for gas or no job and cheap gas?  Don't think it won't happen.  I live in the Houston area.  Oil companies have already announced layoffs & halting projects.  It affects more than just those folks.  The restaurant industry, housing industry, LANDSCAPING industry, services of all types.   Its best to have a robust economy where all kinds of business potential is at hand and thriving than to look like Detroit and desolate.

Deb45 you do make some points but the validity of the highlighted area is questionable. It seems more of an oil industry conditioned response. I acknowledge it is your family's business which like all businesses has good and bad years.

 

My uncle invented a new type of rotary engine (he was way ahead of his time) and also made headway with Hydrogen as an energy source. He was hassled and shut down by the Japanese car manufacturing industry.

 

Not all new technologies are too expensive. A similar case can be made for alternative medicines but big pharma pressurises government, scientists and the FDA etc to lock them out....simply put there is no money in it for them and they want to stop the masses for getting well. They hate to lose control of the people.

 

One must also realise that even if a suitable cheap energy source is found and utilised, the motor still requires Oils for lubrication. So it is not a total loss for the oil industry.

Have a great day!

[zzztop]

Deb45, where do you come up with the $60-$70 per barrel number? 

[Texstorm]

zzztop check out megawatt's post in ''Iraq and dinar news'' for link. I too dumb to copy and post. Thanks

[Texstorm]

Somebody even out Deb Please I'm all out of +, apparently the truth hurts sometimes and sometimes the truth is in who you are, I guess we all have a different way or reasoning for thinking the way we do. Thanks