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Wednesday, June 25, 2008

Oil Speculation Outcome

Oil market speculators are going to be scrambling for the largest profits they can get from now till the first Tuesday in November. With the outright demand for change from not just one political party candidate for President but BOTH! When it comes to oil speculation then the free for all of the Bush Big Oil dynasty will be over. Or is it?

The so called free market game is up when the King of Saudi Arabia opens the spigot of his oil rich nation and says to the world that it is not a supply problem. It is not a supply problem when only a fraction of oil reserve drilling sites inside the United States have yet to be tapped. It’s not a supply problem when the only voice in the world saying it is a supply problem is coming from President Bush and his administration. If you for one minute think that George W. Bush is not in bed with Big Oil then you deserve to pay $12 a gallon for gasoline and see the cost of every product you need to survive triple.

Over at Market Watch they have the official word on what the price of oil should be and the wink, wink, wink of Congressional investigations into oil speculation.

Gas could fall to $2 if Congress acts, analysts say

Limiting speculation would push prices to fundamental level, lawmakers told

By Rex Nutting & Michael Kitchen, MarketWatch
Last update: 4:24 p.m. EDT June 23, 2008

WASHINGTON (MarketWatch) -- The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters' assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.

"Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."
- Market Watch

With the current price of oil threatening $140 per barrel then Congress needs to act with or without the President of the current administration. Not doing so is threatening the American and world economy at near collapse levels. Protests are breaking out all over the world because the cost of oil is crippling industries and yet the prices are going higher day after day. Maybe it is time for Americans to get pissed off too when they tank up the old Chevy for the week and it costs three times more than it did eight years ago!

Same article and same message from the Bush crew in bed with Big Oil…

However, other witnesses said that pure speculators have had little impact on energy prices, which have doubled in the past year to about $135 per barrel. Both Treasury Secretary Henry Paulson and Energy Secretary Samuel Bodman have dismissed the impact of speculators on prices paid by consumers.

Speculators now account for about 70% of all benchmark crude trading on the New York Mercantile Exchange, up from 37% in 2000, said Rep. Bart Stupak, D-Mich., chairman of the investigations subcommittee. Stupak introduced a bill on Friday that would limit index speculation. - Market Watch

Both of the candidates running for President are ticked off at the runaway oil speculation markets and it doesn’t matter at this point in our economy who wins if the economic engine of the world collapses under the oil greed and speculation. When, or if the dust settles, there will be no oil giants, no oil speculation, no free markets simply because you can’t feed your children oil! Anarchy is close and it will start with the mothers of American babies saying enough is enough.

This is not a joke my friends, it is a prediction of times to come. Americans love the simple life and when that life is no longer available to them then they react. How they react is up to the actions of a Congress willing to listen.

People are loosing their homes, jobs are being lost, wages and benefits are being cut, and yet oil continues to take more of what the people no longer have and that is a recipe for a disaster that none of us could ever fathom. People can not sit idly by as they see reports of even more grotesque record profits in the tens of billions as they look at the car in the driveway that they can no longer afford to drive simply because the cost of living has outstripped their paycheck.

Dupont today announced staggering price increases across the board just to stay in business. If you don’t know who Dupont is then all you have to do is look at every item in your home and if it looks like your stuff then Dupont had a hand in making it your stuff at the manufacturing level. Some of their customers are increasing prices by 20% simply because they can’t cut costs any further. This is an oil based cycle that is out of control.

Don’t believe me, Google search it and see what you come up with on Dupont Price Increase. Google search protests across the world on the cost of oil hurting economies not as resilient as ours in the United States. Google is the worlds largest search engine and the links you find do not lie.

Now is the time for you in America to start emailing and complaining to your representatives in the Congress to get behind this disaster that is oil pricing. Tell them you are pissed off and do something about it. Numbers in the complaint column will speak louder than these written words ever will when the other end of the phone or email is your Congressional Representative.


Hat tip to Worm Town Taxi

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