The low POO is not just a indication that Fraccing for oil has increased supply and is more a product of Saudi selling literally boat loads of cheap oil to China. It is also a product of Russia and China making huge deals for Gas and Oil. Significantly, POO and POG are a factor of the financial war being waged by the US/UK/EU against Russia and China.
GOLD
The West has sanctions on buying Russian Gold and so the Russian government is financing the purchase of as much Gold by the Russian CB from Russian Gold miners as it can. Not a lot different to the US/EU buying its own debt or buying most of the Dow.
Obviously this will take most of the Russian Gold off the market and grow the Russian Gold reserves.
Chinese Property Market.
The Chinese government has now begun a programme of buying Chinese property in an attempt to stave of a complete collapse of the property market in China. It is a massive purchase programme.
Fraccing for Oil
Oil from fraccing is expensive and the companies have to constantly drill new wells. This is because the wells are short lived and do not produce a lot of oil, well there are some gushers but they are in the minority. The amount of sweet spots for fraccing for oil is also really quite finite.
By some estimates the oil from fraccing will not last more than another 5 to 10 years at most. Less when you consider when the falling quantity will start to raise the POO again.
Just a few points I have researched over the years. I use to invest in Fraccing companies but not any longer.
