For the 13th month in a row, The Dallas Fed Manufacturing Outlook was contractionary with a stunning -34.6 print following December’s already disastrous collapse back to -20.1, post-crisis lows. With “hope” having plunged back into negative territory (-2.2) in December, January saw a complete collapse to -24.0 as one respondent exclaimed, “we expect the continued depression in the oil and gas industry to negatively impact our customer base and result in significant demand reduction.”
Bloodbath…
First the feast, then the famine… we have a glut in petroleum products at the moment, and lack of demand is driving the price down (along with other factors).
But when the deman fails to rematerialize at the lower price point, then oil production and refinement will be cut back substantially, which will eventually cause even the attenuated demand to exceed production.
At that point, the price of all petroleum-based fuels will “necesarily skyrocket”.
The idiotic oligarchy and their media pogues will claim that this “justifies” the ridiculous sums squandered by our government upon “renewable energy”. Once again, they will have engineered an emergency, for the express purpose of using it to manipulate human behavior…
WE HAVE BEEN WARNED