Click to enlarge.
The parabolic trend in red is failing to the downside. It is currently being pulled towards the blue line (which shows the average daily crude oil imports over the past year).
Never underestimate a weakened US economy combined with a booming North Dakota!
December 8, 2014
Oil drops $2 to five-year low on oversupply
The U.S. shale industry has yet to be hit by the slump in crude prices, Baker Hughes said in a report on Friday, reporting three new U.S. oil-drilling rigs had been added in the last week.
Rising interest rate environment! It's the only way to stop the relentlessly upward trend in oil prices! Oh, wait. Never mind. I think I have that backwards.
In all seriousness, any further attempts at $100+ oil by the Middle East will probably be met by increased oil production in the Middle West. You don't have to be a rocket fuel scientist to figure that out. Well, unless you work at ShadowStats anyway.
Speaking of which, I anxiously await their next imminent hyperinflation special report, just like I do every year. As a saver with deflationary tendencies, they just get more and more amusing!
Subscription fees of $175 per year? Every year? And they take a credit card? That's a ridiculous thing to do during hyperinflation! I don't mean to be preachy, but I feel the need to offer them some free advice.
1. You are providing a service! Crank up those fees to match the inflation you see in our real service economy! Don't get left behind! You can't afford to show weakness as the whole country falls around you!
2a. Credit cards? During hyperinflation? Seriously? That's insane! At the very least, you should be getting paid in canned goods, gold, silver, copper, toilet paper, cattle, ammunition, or dare I say it, imported French sparkling natural mineral water (Perrier)! Just think of the hyperinflationary panic! Create a self-fulfilling prophecy and the paid newsletter world becomes your oyster!
2b. Credit cards? When you know "full well" our country has a serious debt problem? Seriously? What kind of message are you trying to send? That's just got bad public relations written all over it. Did you learn nothing of BP's liability nightmare?
3. Speaking of "full well" and oil, have you ever considered creating an imminent hyperdeflation special report written in Japanese or Swiss Standard German? Go global! Increase your market share! Attract a wider audience! Heck, the Swiss central bank might even buy you out!
EIA: Petroleum & Other Liquids