WHY WILL OIL PRICES DROP DUE TO OVERSUPPLY

I am not a "perma-bear" -- someone who is always predicting bearish events -- but I am a "perma-realist" -- someone who is right more often than wrong Every time I predicted the price of oil would drop, it did I predicted the collapse of oil prices when oil was at $20 a barrel I said the price of oil would drop to $15 a barrel in early 2016 I said the price of oil would drop to $10 a barrel later in 2016, and I said the price of oil would continue to drop to $5 a barrel by the end of 2016 I was right I am now predicting that the price of oil will drop to $2 a barrel in 2022 I am not predicting that the price of oil will go to $2 a barrel overnight I am predicting that the price of oil will drop to $2 a barrel in 2022 because the world is about to experience a massive oil supply glut in 2019 and 2020 If the price of oil is $2 a barrel in 2022, it will be the first time in history that the price of oil has been this low Think of it this way: $2 a barrel is more than twice as cheap as the price of gas at the pump right now Think of the impact that $2 a barrel oil will have on the entire world https://www.weforum.org/agenda/2020/04/oil-barrel-prices-economic-supply-demand-coronavirus-covid19-united-states/ I am not making this up I am not a perma-bear I am not trying to scare you and make you nervous I am simply telling you what is going to happen WHAT ABOUT THE THRILLING HIGHS OF THE 1970s? People often ask me what is going to happen to the price of oil in the future They ask me why I am so pessimistic about the price of oil when the price of oil is going to $100 a barrel or even $200 a barrel Break even price for oil drilling is 50 to 60 dollars a barrel. The long term futures market in oil is taking losses as cost drop because of shale increased production and full oil storage capacities being reached. https://www.dallasfed.org/research/economics/2019/0521 People forget that the price of oil was $45 a barrel in 1972 They forget the price of oil was $22 a barrel in 1974 They forget the price of oil was $35 a barrel in 1980 They forget the price of oil was $33 a barrel in 1981 They forget the price of oil was $38 a barrel in 1982 The expensive oil of the 1970s is all they remember People have also forgotten the impact of the 1973 oil crisis