The SAME PLAY as OIL early 2000's23 Jan 2024 20:08
Oil industry - early to mid-2000s,
suspicious manipulation in oil prices were affecting wages across the sector globally, a play that shows the resemblance to the lithium industry today.
Both instances involve major players strategically influencing (fixing) market conditions to their advantage.
During that time, the construction and commissioning (C&C) of massive CAPEX, multi-billion $$$ refineries, terminals and offshore platforms were underway globally for oil majors.
Companies directly kept prices artificially low during during the C&C phase to crush workers rates, ultimately to no detriment of shareholders (the banks, Wall St etc etc)
In a parallel scenario, the lithium industry is currently experiencing a surge in demand due to the growing popularity of EV’s and renewable energy storage solutions.
Similar to the oil industry, there is clear indicators of price manipulation pattern at play, again look to Wall St & the Banks ‘statements on Li’ this last 12 months.
As companies invest heavily in lithium extraction and processing facilities to meet this demand (i.e. CAPEX projects again),
its clear that some companies are influencing prices strategically, driving them low again during the C&C phase of new facilities, only to benefit from the subsequent inbound surge when they are operational.
The recurring theme of “strategic timing” in the oil industry and the suspected patterns emerging in the lithium sector only lead to one conclusion . . . Manipulation at high level.
In the meantime, try stay calm, you know Li is the new global powerhouse!!!