Wall Street Does It Again
It was a shocker!
Answering a question from Senator Maria Canwell (D-WA) of the Senate Finance Committee, Exxon Mobil CEO Rex Tillerson admitted that oil prices did not currently reflect supply and demand. “When we look at it, it’s going to be somewhere in the $60 to $70 range."
Oil barrels is currently just under $100 a barrel, so it is clear that something beyond the laws of supply and demand is driving the high price of oil, and with it, the high price of gasoline. Well, if it isn’t supply or demand that is driving the price of oil up so high, there’s really only one other culprit: oil speculators.
What, exactly, are oil speculators? They are social parasites, gamblers who produce absolutely nothing of value. They bet on the price of a barrel of oil, and use their low margin requirements and influence in the market to drive the price of commodities higher and higher. They then feed off each other, like lemmings off a cliff, speculating and pushing the market higher. When the market seems prime for a dip, they switch their bets. This drives the price back down some, allowing them to magically make money on both sides of the transaction.
A small amount of oil speculation is a healthy thing for the economy, when it is done by firms intent on actually receiving the oil and producing something of value with it. Speculation lets those companies time the markets to reduce their costs. Those bets have a negligible effect on the price of oil.
But, according to experts, speculators in today’s market have added $30 to $40 to the price of a barrel of oil. Let’s assume that Tillerson is telling the truth, and not just placing blame on these convenient, shadowy targets. What does this mean for you?
For starters, it means you are paying a ridiculous premium at the pump. By allowing speculators to gamble on the oil commodities market, you add those additional $30 to $40 to the price of a barrel of oil. Take that money out of the equation, and you’re looking at $60 barrels of oil. That translates to a gas price of around $2 per gallon, if not less.
Oil speculation might also have cost you your job. The high price of oil has been a drag on the economy for two years, dragging the economy down every time it starts to grow. The unemployment rate has hovered around 9-10% for years now, and every time it threatens to make gains, the price of oil drags the economy back down.
It is clear to any impartial observer that regulators need to clamp down in speculative trading in the oil market before the economy will ever fully recover. Failure to do so will not just effect the bottom line of corporations, but the pocketbooks of America’s families.


Comments: 85
Hello Everyone,
I'm everyone on this blog and I love to tell everyone a lot of lies and everything else. Plus I'm KC and Kman and a few of the other people on this blog because nobody wants a stupid person like me.
From,
Larry Retart Mendte
Hello Everyone,
The Obama Toga party is still going on and I'm still going!
From,
Larry Retart Mendte!
PS. TOga TOGA TOGA!!!!!!
I'm going top **** Kaity Tong back stage tonight!!!!!
I like how people finally are realizing the larry writes as KC. KC and and larry are the only two that give a crap about this blog, everyone trashes it while good ol' KC backs larry up. Also they are the only two that use the word "stupidity". Well looks like KC wont be writing anymore...but look for more fake names putting obama down...its larry
big corps in bed with the govt, again, is not really a news, Larry
There is this book that was introduced from John Stossel's show from FOX business, it is called "Bought and Paid For: The Unholy Alliance Between Barack Obama and Wall Street"
Well, it is not really limited to Obama, it is the whole freaking govt that is bought and paid for. Those big guys in wall streets are really liberals, they love big govt - to protect their own interest.
It is not a real capitalism with free market anymore, it is crony capitalism with big corps wanting oligopoly, and the govt wanting more power
PS: who the heck give you people the idea that I am Larry??
Give it a rest KC, the jig is up
When you had themendtereport.com website I commnted on an article and I wrote as KC in the same style you always write just to see if it was you or not. And the next day you removed the comment....why?....you did not want another person pretending they were KC.
Dear Larry,
I appreciate your commentaries! I will try to keep my comments brief. Your 5/13/11 commentary on oil market speculators and our politicians is partially correct. The speculators on the commodity markets see an opportunity caused by the Federal Reserve’s (Feds) monetary policy to pay our debt and de-flat the long term debt. The Feds policy (called QE2) is monetizing our national debt. When they print money this devalues the dollar causing commodities to naturally rise in price because these markets are based on the US dollar. Simply said, the Feds are printing money to pay part of our trillion plus dollar national debt (annual debt). The other part of our debt is being bought by foreigners which is another story. One analyst, calculates that the rise in commodity prices (particularly oil) is caused more by this policy than the uncertainty of the middle east. He calculates this @ 70%. This policy is driving the commodity train more than the investors.
I submit to you that we (the voting US citizenry) have elected politicians who cannot say no to expanding government programs and give aways. Is it really their fault or those who vote in these elected leaders!!!??? If we can learn to live within our means and elect leaders who believe in limited government like our founders created, America can get out of this hole and prevent these extreme situations where over reaching policies create the hidden tax of inflating commodities (food, oil, etc) which we are paying!
Sincerely,
Darryl Pelletier
“Alycia Lane was (and still is) suing me. (There is no money to be had, so the suit seems purely vindictive.) Her attorney was quoted in the paper saying, “We don’t want to leave him with a penny.” The lawsuit is ongoing, but it is only my children who can be hurt now. I wish she would see that. I, like many other people, wish I never met Alycia Lane.”-Mendte words from “it” article. Now Larry why dont “you” heed your advice and just drop the case?ohhhh cause your privacy was violated.
I've been blogging here, for over a year, that the oil speculators are fictitiously "jacking up" the price of oil...
I repeat.. it costs about $7/brl to find and extract the oil.. Another $7/brl to refine the crude oil, and another $7/brl to transport and provide gas at the pump...
That's $21 for the cost of a gallon of gas.. All else is greedy, excessive profit and political manipulation !!
And these speculators who write these "over-the-top" oil futures contract are without a doubt, primarily republican commodities market manipulators ...
Republicans have us by the throat, and will strangle us decent americans to death for political gains...
The republican billionaire KOCH BROS are big, big players in the high price of oil and many other commodities !!!!
ANY PRICE OVER $1.25 A GALLON OF GAS IS PURE GREED
AND AVARICE..
And is now politically motivated !!!!
Hello Everyone,
I'm going to let Larry & Lionel and their wifes and ex wifes rub sun tan oil all over me very soon and with the obama toga party!
Tanning Rooms!!!!
From,
Kaity Tong!
PS. Toga Toga Toga!!!!!
I don't understand how you can write an article about oil prices without mentioning how the heads of the big oil companies are in Washington D.C. defending their government subsidies they receive. Republicans are defending these subsidies, saying to end them is a "job killing" "tax increase". That same argument can be made about any cut in government spending, but Republicans say they're serious about cutting spending? It should be obvious to end subsidies to large companies making record profits, but their fighting to give our tax dollars to oil companies. How can anyone take them serious about their credo to cut spending when they fight to protect money for oil companies?
The problem is we have no real alternative to gas in the U.S. If gas had some competing alternative, it's price would drop into the realm of realistic. As things stand now, they can charge whatever they can get away with. If consumers could choose another option, the oil companies would need to compete. Countries like Brazil run most of their vehicles on ethanol produced in their own country, and the export most of the oil they produce.
Their are several proven alternatives to gas like: e85, CNG, bio-diesel, coal liquifaction, electric cars, etc. If the money that's being given to oil companies was used as incentive to get gas stations to offer at least one alternate fueling option, vehicles would be made to use those alternatives. But until people can realistically use a vehicle that uses something other than gas, car makers won't invest the money to make the vehicles. Unless someone steps in, the oil companies will maintain their monopoly and do what they can to kill any competition.
As far as Darrly's comment that "One analyst, calculates that the rise in commodity prices (particularly oil) is caused more by this policy than the uncertainty of the middle east. He calculates this @ 70%", I hope you realize that "one analyst" isn't part of the majority. The price of oil has been going up when the economy's forecast is good, and down when the economy's forecast is bad. It's really simple, speculators believe if Americans have money they will spend it and if they don't have money they spend less. The stock market is just a glorified casino where people with money place bets. Those people are out to make money and have no concerns about how their actions might impact the economy, other than to guide their next bet.
I don't understand how you can write an article about oil prices without mentioning how the heads of the big oil companies are in Washington D.C. defending the government subsidies they receive. Republicans are defending these subsidies, saying to end them is a "job killing" "tax increase". That same argument can be made about any cut in government spending, but Republicans say they're serious about cutting spending? It should be obvious to end subsidies to large companies making record profits, but their fighting to give our tax dollars to oil companies. How can anyone take them serious about their credo to cut spending when they fight to protect money for oil companies?
The problem is we have no real alternative to gas in the U.S. If gas had some competing alternative, it's price would drop into the realm of realistic. As things stand now, they can charge whatever they can get away with. If consumers could choose another option, the oil companies would need to compete. Countries like Brazil run most of their vehicles on ethanol produced in their own country, and the export most of the oil they produce.
Their are several proven alternatives to gas like: e85, CNG, bio-diesel, coal liquifaction, electric cars, etc. If the money that's being given to oil companies was used as incentive to get gas stations to offer at least one alternate fueling option, vehicles would be made to use those alternatives. But until people can realistically use a vehicle that uses something other than gas, car makers won't invest the money to make the vehicles. Unless someone steps in, the oil companies will maintain their monopoly and do what they can to kill any competition.
As far as Darrly's comment that "One analyst, calculates that the rise in commodity prices (particularly oil) is caused more by this policy than the uncertainty of the middle east. He calculates this @ 70%", I hope you realize that "one analyst" isn't part of the majority. The price of oil has been going up when the economy's forecast is good, and down when the economy's forecast is bad. It's really simple, speculators believe if Americans have money they will spend it and if they don't have money they spend less. The stock market is just a glorified casino where people with money place bets. Those people are out to make money and have no concerns about how their actions might impact the economy, other than to guide their next bet.
Hello Everyone,
I know that you're goig to be looking for me at the obama toga party on July 4, 2011. I'm going to be in the bikini and it's a very nice one with a top and a bottom of course.
I'm going to be taking it off and then showing everyone everything that I've got and even my body parts I'll have to get cleaned before I can show up.
My legs and everything else is ready and I've got a one piece to.
I know that it's going ot be avery nice evening and then we're all going to be doing the obama and dancing the night away and I know that it's going to be very good for me because I'll be their all day long. And back at the studio at night then it's back to the party and the obama hot tub.
From,
Kaity Tong
PS. Please
send E-mail to
president@whitehouse.gov.
Toga Toga Toga america!!!!!
OK PEOPLE JUST THINK ABOUT THIS:
if everone didn't go anywhere for one day, and nobody got gas at all for that one day, i would almost guarentee that gas would be back at 2-2.50$ a gallon. just b/c our economy couldnt take it...... we seriously need to do it.......
To the average person who has trouble understanding these things it seems easier to accept unrest in the Middle East as the main reason. Obama doesn't sound like he's gonna do anything about it, just study the issue:)
I'm wondering what you'd like our President to do? He's increased public transit options, increased fuel economy standards and promoted alternative energy options. He just recently "launched a task force led by the Attorney General that has one job: rooting out cases of fraud or manipulation in the markets that might affect gas prices, including any illegal activity by traders and speculators". Plus he directed the Department of the Interior to conduct annual lease sales in Alaska's National Petroleum Reserve while respecting sensitive areas, to speed up the evaluation of oil and gas resources in the mid and south Atlantic and to create new incentives for industry to develop their unused leases both on and offshore. You must not be paying much attention if you honestly believe the President is going to "just study the issue":)
In order to lower prices, consumers need another option to gas. Today they just installed an electric charging station 45 miles from my house. I'm going to need one a lot closer if I'm going to honestly consider an all electric vehicle, and I'm sure that's true for most people. We need the ability to refuel with alternatives to gas within a reasonable distance to home.
Increasing oil production here doesn't increase our supply, it all gets sold on the international market. The U.S. has only 2%-5% of the worlds known oil reserves, but we use 25% of the world's oil production. and other countries like India and China are playing catch up with us. The only way we're going to get gas prices down is to use less of it by giving consumers an honest alternative.
I agree w/disgusted why aren't we using alternative fuel by now anyways
The price of oil, gas is affecting our business sooo much right now. It's just ridiculous these oil speculators! Why can't we go back to you can't buy the oil contracts unless you can house the freakin' oil! Ridiculous
How in the world, I want to know, is this speculating crap still going on!?!? Gas demand is not there I know. It's just crazy because of how much they can manipulte the prices of everything. Take away their power. It's reALLY EFFECTING BUSINESS AND RECOVERY OF THE ECONOMY!
Way to go this is exactly is the type of stuff im was hoping to see, good article.
Your thoughtful insight and proactive thoughts is a big reason why I'll always visit your site. I can tell you've spent a lot of time on this. Great job!
The Obama Toga party is still going on and I'm still going
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