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RE: Crude Oil Price - Reasons why the price keeps dropping
Oil fluctuation like other crisis is fueled mostly by political manipulations. Tensions between few powerful international stakeholders often determine the price.
And there's also the issue of storage; Like you said in your second second.
I remember one of my pals jokingly said to me when the price of oil went unbelievably down; that now was the time we could come on, buy massive oil and emerge the next Bill Gates of oil, Lol. I was merely amazed at his silliness to think that we could actually turn billionaires so easily even if we had the money. Like dude are we going to clear out cans in the garage and fill them with oil or just keep em in the basement?😂
Manipulation is the right word. A lot of stakeholders just do the manipulation when they want to show they are still in control.
For this, selling oil isn't as easy as it looks. First storing oil is a very vital thing as it is highly flammable even in its raw form. It smells really bad when stored and also it is almost impossible to sell a few barrels of oil. You need to have in thousands of barrels before it can be marketable. The bad part about oil is that unlike Amazon that charges you delivery fee, you have to transport the oil to the buyer yourself.