The price of crude oil momentarily dipped to just below $40 per barrel on Friday. Hearing about the oil market reminded me of the coming Second Signpost, the invasion by Iran (as if I needed a reminder). About these low prices, the Wall Street Journal article said there is “a growing consensus that cheap crude is here to stay.”
Indeed, if there was no Second Signpost coming, I would agree. US producers with their new technologies are attempting to make the US independent of foreign oil. Saudi Arabia, wanting to maintain its position of leadership as the number one producer of oil in order to maintain its markets has raised its production. On top of that demand has eased a bit with China’s slowdown. Yes, low oil prices would be here for a while much to the benefit of consumers.
But the Second Signpost will put an end to that. As I have shown in Daniel Revisited and in numerous posts on this website, great turbulence in the oil market and a resulting deleterious effect on everyone’s lives will result. A test is coming of the Signpost interpretation. If the four horsemen are indeed representative of each of the Four Signposts and hence the four beasts of Daniel 7, we should see peace of mind and relative lack of concern for day-to-day living be removed from much of the world. Revelation 6:4 says of the second horseman, “Its rider was given power to take peace from the earth…”
How else could peace (in the Greek, iraynay) be taken from the earth? How would a great Sunni-Shia War covering the Mideast take peace from the earth. We only have to look as far back as the Arab-Israeli Wars of 1967 and 1973 to know how peace was under assault. Was it because Israel was being attacked? Unfortunately, no. It only concerned Americans (and Israelis of course). It was the oil.
In the last forty years whenever anything bad happens in the Middle East the oil price jumps a bit. In 1973 when 6% of the world’s oil supply was cut off the price doubled (yes, doubled). If Iran takes over the oil fields and turns off the spigot we are talking about a 25% cut off. I believe a doubling in the price would occur overnight and only be the beginning. This is a guess on my part of course, but what kind of prices might we see? We could possibly see oil at $200 per barrel and gasoline at $10-12 per gallon here in the US. But this might be conservative – it might go even higher. It will go to a level that fulfills the prophecy of the second horseman.
The point is, consumers and nations could get used to $40 per barrel oil and make investments and decisions assuming it will be like this for a long time. For instance, look at the graphic half-way down the article. It shows in the last year that the number of rigs being used has been cut in half in the last year because of the low prices. There is pressure to reduce oil production which would make the Second Signpost, when it strikes, an even greater hardship.
The Second Signpost will change many things and impact the world economically. Be aware of the Second Signpost. And don’t count on continuing low oil prices. Iraynay could be taken from the earth.