Dr. Kent Moors
Dr. Kent'S LATEST HEADLINES
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The Shocking Role of Iranian Sanctions in Crude Oil's Plunge
The collapse in oil prices has now reached historic levels.
Tuesday's 7% plunge in West Texas Intermediate (WTI) – the largest slump in more than 30 years of futures contracts – marked the 12th consecutive daily loss for the New York benchmark. Before rebounding slightly yesterday, crude had been down more than 22% in less than a month.
Now, we've spoken many times before about the numerous reasons why crude prices can plunge: artificial manipulation from short sellers and institutional monkeyshines, geopolitical tensions, distortions in supply and demand, even outright oversupply – we've seen it all before.
In this present case, some of this current decline is warranted, given the market's overestimation of Iranian sanction impacts and, to a far lesser extent, some weakening in underlying fundamentals.
But to be sure, the leading cause of the plunge has been a combination of what I have called the "lemming fixation" (a penchant for jumping off the cliff en masse) and some outright market manipulation.
I'll have more to say on this shortly, in a more extensive analysis my team and I are preparing right now.
But it's the completely counterintuitive - yet entirely predictable - effect of the recently re-imposed sanctions on the Islamic Republic that I want to explore today... - Elon Musk Just "Delivered the Goods" in This Australian Energy Project
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