People have been speculating for some time about the true underlying reasons as to why and how the oil l price has been declining and where it will go. We have the Saudi's stating that we will never see $100 a barrel of oil again. Then we have the Secretary General Abdell El-Bardri saying that oil will climb up to $200 a barrel.
The Saudi's have been lowering prices to cripple the American fracking rigs. Its working, North Dakota as well as all other minor fracking Fields across the U.S. are shutting down. Manipulation to put America's production on halt could be OPEC's doing. It is like Wal-mart vs. mom and pop stores if you can wipe out all the small stores then you can reign supreme because you are the monopoly. It took over six months for many oil and fracking companies just to turn off the tap even though they saw the demand decreasing and prices plummeting. Most if not all these companies will never be able start up again because its all leveraged out with junk bonds. The lack of investors will make it impossible to open the way it was. The population is growing, that means demand for food and other conveniences such as oil and energy will grow regardless. It is estimated that by 2030 China's demand for oil will increase 600%, even though demand is low now it may not be soon enough.
Many theories are on the table, I personally see this as economic war. The U.S. is driving the price down in targeted countries Russia, Venezuela and Iran. These counties will soon be replaced with pro-westerns leaders, most likely by the Obama Administration. Putin, Maduro and Rouhanie are on the United States "blacklist". Putin is a major target, he has the will and drive to assert their *sovereignty*. He supports Assad because he was freely elected. However he opposes Islamic fundamentalism. Other nations bow under America's drone bombs and trade agreements, like China has been doing. The world buckles under the "extra-sovereign" companies like Monsanto and Apple. On the other side of this onslaught is really just one man, Putin. There's a second guy in Greece, but the powers that be will make sure he doest have a leg to stand on.