Tuesday, December 15, 2015

Oil falls below $35 a barrel while natural gas drops to lowest level since 2002

Energy prices are not simply barometers of inflation and deflation, but they are also red flags that point towards recession in ways few other indicators can.  And when you couple the current declines in oil and natural gas with highs in inventories worldwide, the result is that the global economy is slowing way down, and no amount of hyperbole from the mainstream media can change this.
A few weeks ago, Dr. Jim Willie gave an interview in which he said one of his primary sources intimated that oil would eventually fall to around $20 per barrel, and this was on a day that prices were sitting around $41-42.  And in less than two weeks, the price has now fallen below $35 per barrel heading into the new year.


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