As the world braces for a clash of the oil titans, former energy market regulator, Chris Cook, doesn’t believe the hype about there being a price war between Saudi Arabia and Russia. He believes this price collapse is all about the lack of demand and that is the lower bid putting frackers out of business. Cook believes the balance of power is shifting to the buy side of oil market, led by China.
He also suggests the repo market intervention, which started the same day as the attack on the Saudi oil field, is all about pegging the dollar to fracking reserves. And that, as such, oil in America is being funded by Enron methods of pre-payment. And, finally, on a bright note amidst an otherwise gloomy economic forecast, oil and energy are the only objective costs and if you cut those costs back, it opens up the margins for many businesses. Tune into Double Down to hear more about what Chris Cook has to say about the energy market.
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