Source: Kenneth Ameduri for The Gold Report 03/24/2017
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Collapsing oil prices are only the beginning as fossil fuels are turning into a historic relic, says Kenneth Ameduri, chief editor of Crush the Street. He discusses two commodities whose demand he expects to skyrocket as the world shifts to cleaner energy.
Elon Musk is at the forefront of this movement with his innovations that are turning fossil fuels into a historic relic. Some say oil’s true price per barrel with the “supply glut” that exists and the innovations in the battery space is $20 per barrel.
Oil prices are destined to collapse in REAL TERMS. Sure, there are some inflationary and deflationary forces counteracting each other over the longer term.
The fact is that oil is still a highly demanded commodity, and the world isn’t ready to be converted to 100% electricity TOMORROW. The power grid would not support this rapid shift. Cars haven’t fully gotten to the point YET where they are cost effective enough to be as practical as gas-powered vehicles. But believe me, it’s coming.
Also, the Fed’s monetary policy and habit of printing trillions of dollars is going to put upward pressure on the price per barrel simply because there are more dollars chasing the same amount of goods.
No doubt, the world is demanding clean air solutions and this is deflationary for oil because demand will ultimately continue to dwindle.