In the age of oil he who controls its price is king.
And ironically it’s the king who controls its price.
Saudi Arabia can produce oil in some of its wells for as little as $4 per barrel. Because of this it has long been the swing producer for the world.
When oil prices start to drop Saudi Arabia cuts production creating a floor to stabilize prices and bring them back up.
When oil prices get too high Saudi Arabia adds oil to the market creating a ceiling to stabilize prices and bring them back down.
But over the last couple years as oil prices dropped Saudi Arabia did the unthinkable by actually increasing production.
There is plenty of speculation as to why they did this, but no one seems to have hit the nail on the head just yet … until now.
One theory is that they did this to weed out shale oil producers in the U.S. But that really lacks credibility. Some shale producers were hurt, but not horribly. In fact, in many regards they were hurt less than Saudi Arabia itself.
So why would Saudi Arabia work to lower oil prices when they need higher oil prices just to maintain their economy?
In his new video presentation JR Crooks details the long-standing pact between the executive branch of the U.S. Government and the Saudi royal family that ensures both parties will work together to meet objectives when the time calls for it.
And recently the time has called for it.
The last time this tactic was used to drastically alter oil prices was in the 1980’s when the U.S. and Saudi Arabia worked together to push oil prices lower in an attempt to destroy the Soviet Union Empire. History has shown that it worked extremely well and now they have come together to do it again.
[Readers ask: Is history repeating itself? Click here to learn why lower oil prices could be sounding the death knell for Putin’s Russia.]
Only this time they have three times the number of enemies to bring down. Iran, ISIS and Russia were all in the crosshairs of this weapon. And all have been critically hurt by cheap oil prices. But as history has shown, when oil prices are artificially manipulated lower they rebound quickly too.
And these rebounds in the price of oil create incredible opportunities for savvy investors who see the writing on the wall to reap outrageous gains by purchasing “slingshot” oil companies whose values skyrocket when oil begins its rise once again.