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Oil is pegged to the dollar and the dollar is hitting historic lows in opposition to most major economies together with Euros, Yuan, Yen, and the Canadian greenback, and Actual. We have pumped 1.2 trillion of liquidity into the markets and have no plan to cease anytime soon. From what I’ve read (which is pretty minimial), world consumption of oil is definitely down while world production is mostly flat. My belief is that we’re seeing a commodity correction due to fiscal uncertainty brought on by borrowing at a price the world has by no means seen and would not know how you can quantify.
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