Apparently you are the one that doesn't know jack shit.
You also lie, can't read and lack critical thinking skills.
I doubt even going back to school could help you.
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I don't believe this guy below for a sec on the price dropping so precipitously.
But he is right about the oil supply situation that they have run out of room to store all of it. Barges have been docked up and down the Mississippi for years now. It has to be turning into sludge by now.
12-2-2012
http://seekingalpha.com/article/1039621-wti-crude-oil-to-test-65-level-in-2013?source=yahoo
WTI Crude Oil To Test $65 Level In 2013
Now we get to the supply side of the equation, and here is the problem for Oil bulls, and partly the reason so many funds got killed in 2012 trying to aggressively invest in Oil through Futures, ETFs and the like. No established trends could take hold because the supply levels globally and domestically are well above the five-year average, and at the height of that range.
The most noteworthy trend in the Oil markets for 2012 is the increased role of U.S. and Canadian production, and it is only going to get stronger for 2013 and into the future.
Just to give the reader an idea of some of this dynamic change in U.S. production numbers alone, the United States is on track for a 7% increase in oil production this year to an average of 10.9 million barrels per day. Furthermore, The U.S. Department of Energy is forecasting that U.S. production of crude and other liquid hydrocarbons will average 11.4 million barrels per day in 2013. For the sake of comparison, Saudi Arabia's output is approximately 11.6 million barrels per day.
The only reason Oil isn't much lower currently is that there has been a lot of increased Oil storage for newly built capacity in China and the U.S. For example, Cushing Oklahoma, which is the location that the WTI Futures contract is based upon, had a storage capacity of approximately 47 million barrels in March 2011, with increased Capacity upgrades it stands just above 60 million barrels as of March of 2012.
But here is the kicker; on September 30, 2011 Cushing had just under 30 million barrels in storage, as of last week Cushing has 46 million barrels stored at this location, this is an increase of 16 million barrels in one year. If we have a repeat in 2013, which all signs point to as the trend is getting stronger not weaker, then Cushing will be running out of working storage capacity of just over 60 million barrels. I am sure Cushing is building more workable storage capacity as we speak, but at some level what is the point, 2013 is when WTI starts really pricing in some of this supply glut that comes from increased U.S. and Canadian production.
The supply glut just isn't in WTI-- it is felt in total U.S. inventory levels, which to quote directly from the EIA Report: "At 374.1 million barrels, U.S. crude oil inventories are well above the upper limit of the average range for this time of year." The US Inventory level will probably bust through the 400 million level in 2013 for the first time in history.
You can only store so much Crude Oil, and with 700 million in the Strategic Reserves, another 400 million in U.S. Reserves, how much do we really need to store in an increasingly energy independent North American Region?
Economics will dictate that you can only build so much storage to avert the price drop from continual over supply,
and right now the world produces more Oil than it consumes each day, and it has for the past 16 months, this trend will only get worse in 2013. So expect prices to finally start to address this over supply issue in the Oil Markets in 2013.
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