Is there a causative link between oil speculation and fuel prices?

Poll

How much is the price of fuel determined by oil speculation?

All of it is.
Most of it is.
Roughly half of it is.
Some (e.g., 20-30%) of it is.
Very little of it is.
None of it is.

Author Topic: Is there a causative link between oil speculation and fuel prices?  (Read 35003 times)

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Offline Geolibertarian

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Before answering the above poll question, please read the following:

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The Problem

Wall Street speculators manipulate oil prices at your expense. This speculation increases the cost of gasoline, diesel, jet fuel, heating oil and other energy products. Higher fuel prices make it more expensive to drive, travel, farm, pay utilities and ship goods. Government regulators must now implement the recently passed financial-reform law to stop rampant speculation once and for all.

What is causing the high price of fuel?

Fuel prices remain high despite the weak economy. Gasoline costs nearly the same as the days following Hurricane Katrina – even though people and companies around the world are using less fuel because of the weak economy. There is absolutely no justification for today’s inflated prices.

The only logical explanation for this disconnect in supply and demand is the rise of rampant speculation on Wall Street. Speculators buy and sell as much oil as possible to make a quick and easy profit – even though they will never use the oil that they purchase. Speculators might trade a barrel of oil more than 20 times before it is ever used – the price going up with each speculative trade, and consumers picking up the final tab. This rampant speculation reportedly increases oil prices by as much as $10 to $30 a barrel – raising the cost of nearly everything you purchase.

High energy prices have forced many families to choose from paying their heating bills, filling up on gasoline or putting food on the table. Many businesses have struggled to stay afloat and keep workers on the job because of high shipping and transportation costs. Enough is enough. It is time for Wall Street to earn its money – not get rich at your expense by recklessly gambling on oil.

How did they get away with that?

Lobbyists and special interests used their influence in Washington, D.C. to weaken regulations on oil trading. For example, in 2000, Enron convinced Congress to overhaul 60-year-old commodities rules that formerly provided checks and balances on oil speculation. This loophole allowed speculators to manipulate and potentially corner the market.

[Continued...]

---------------------------
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #1 on: February 26, 2011, 11:12:05 AM »
http://www.nader.org/index.php?/archives/1276-Stop-the-Oil-Speculators.html

Stop the Oil Speculators

Nader.org
May 27. 2008

What factors are causing the zooming price of crude oil, gasoline and heating products? What is going to be done about it?

Don’t rely on the White House—with Bush and Cheney marinated in oil—or the Congress—which has hearings that grill oil executives who know that nothing is going to happen on Capitol Hill either.

Last week the price of crude oil reached about $130 a barrel after spiking to $140 briefly. The immediate cause? Guesses by oil man T. Boone Pickens and Goldman Sachs that the price could go to $150 and $200 a barrel respectivly in the near future. They were referring to what can be called the hoopla pricing party on the New York Mercantile Exchange. (NYMEX)

Meanwhile, consumers, workers and small businesses are suffering with the price of gasoline at $4 a gallon and diesel at $4.50 a gallon. Suffering but not protesting, except for a few demonstrations by independent truckers.

A consumer and small business revolt could be politically powerful. But what would they revolt to achieve? Their government is paralyzed and is unable to indicate any action if oil goes up to $200 or $400 a barrel. Washington, D.C. is leaving people defenseless and drawing no marker for when it will take action.

Oil was at $50 a barrel in January 2007, then $75 a barrel in August 2007. Now at $130 or so a barrel, it is clear that oil pricing is speculative activity, having very little to do with physical supply and demand. An essential product—petroleum—is set by speculators operating on rumor, greed, and fear of wild predictions.

Over the time since early 2007, U.S. demand for petroleum has fallen by 1 percent and world demand has risen by 1.3 percent. Supplies of crude are so plentiful, according to the Wall Street Journal, “traders of physical crude oil say their market is suffering from too much supply, not too little.”

Iran, for instance, is storing 25 million barrels of heavy, sour crude oil because, in the words of Hossein Kazempour Ardebili, Iran’s oil governor, “there are simply no buyers because the market has more than enough oil.”

Mike Wittner, head of oil research at Societe Generale in London agrees. “There’s various signals out there saying for right now, the markets are well supplied with crude.”

Historically, oil has been afflicted with the control of monopolists. From the late nineteenth century days of John D. Rockefeller, and his Standard Oil monopoly, to the emergence of the “Seven Sisters” oligopoly, made up of Standard Oil, Shell, BP, Texaco, Mobil, Gulf and Socal, to the rise of OPEC representing the major producing countries, the “free market” price of oil has been a mirage. Despite the breakup of the Standard Oil company by the government’s trustbusters about 100 years ago, selling cartels and buying oligopolies kept reasserting themselves.

In an ironic twist, the major price determinant has moved from OPEC (having only 40% of the world production) and the oil companies to the speculators in the commodities markets. What goes on in the essentially unregulated New York Mercantile Exchange (NYMEX)—without Commodity Futures Trading Commission (CFTC) enforced margin requirements, and, unlike your personal purchases, untaxed—is now the place that leads to your skyrocketing gasoline bills. OPEC and the Big Oil companies reap the benefits and say that it’s not their doing, but that of the speculators. Gives new meaning to “passing the buck.”

Deborah Fineman, president of Mitchell Supreme Fuel Co. in Orange, New Jersey, summed up the scene: “Energy markets have been dictated for too long by hedge funds and speculators, who artificially manipulate the numbers for their own benefit. The current market isn’t based on the sound principles of supply and demand but it is being rigged by companies and speculators who are jacking up prices for their own greed.”

Harry C. Johnson, former banker who worked for many years inside Big Oil and ran his own small oil company in Oklahoma, blames the CFTC, the Department of Energy, the Administration, and Congress, as “asleep at the switch on an issue that is probably costing U.S. consumers $1 billion per day.”

He cites “some industry experts, who profit greatly from the high price of crude, and have stated openly that the worldwide economic price of crude, absent speculators, would be around $50 to $60 per barrel.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #2 on: February 26, 2011, 11:18:08 AM »
http://www.truth-out.org/remember-4-gasoline-oil-speculators-are-back65799

Remember $4 Gasoline? Oil Speculators Are Back

by: Kevin G. Hall
McClatchy Newspapers | Report
December 8, 2010

Washington - Despite weak demand in the U.S. and Europe, oil prices climbed this week to near $90 a barrel and gasoline prices have passed $3 a gallon on the West Coast and parts of the Northeast.

Why? If demand is down and supplies are plentiful — and they are — why would prices be going up?

Because Wall Street speculators are driving up oil and gasoline prices again — just in time to dampen holiday cheer.

"It's all about investor optimism, and that's been the story about 2010 ... that's the primary reason why we're seeing oil prices at $90 (a barrel) and gasoline making an uncharacteristic climb in December towards $3 a gallon," said Troy Green, a national spokesman for the AAA Motor Club, which monitors gasoline prices.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #3 on: February 26, 2011, 11:23:14 AM »
http://www.counterpunch.org/zadeh10012008.html

The Recurring Myth of Peak Oil

By Ismael Hossein-Zadeh
CounterPunch
October 1, 2008

The Peak Oil theory maintains that world production of conventional oil will soon reach a maximum, or peak, and decline thereafter, with grave socio-economic consequences. Some proponents of the theory argue that world oil production has already peaked, and is now in a terminal decline [1].

Although, on the face of it, this sounds like a fairly reasonable proposition, it has been challenged on both theoretical and empirical grounds. While some critics have called it a myth, others have branded it as a money-making scam promoted by the business interests that are vested in the fossil fuel industry, in the business of war and militarism, and in the Wall Street financial giants that are engaged in manipulative oil speculation.

Regardless of its validity (or lack thereof), the fact is that Peak Oil has had significant policy and political implications. It has also generated considerable reactions among various interest groups and political activists.

While environmental and similar activists have used Peak Oil to promote more vigorous conservation and more energetic pursuit of alternative fuels, the oil industry and its representatives in and out of the government have taken advantage of Peak Oil to argue in support of unrestrained extraction of oil and expanded drilling in the offshore or wildlife regions.

Because of its simple logic and facile appeal, Peak Oil has also led many ordinary citizens, burdened by high fuel bills during periods of energy crisis, to support unrestrained or expanded drilling. According to a recent Rasmussen poll, 57 percent of Americans favor more offshore drilling. Misled and misplaced popular perceptions, in turn, play into the hands of the oil industry and their representatives to lobby for the lifting of the Federal ban on oil production in hitherto restricted regions.

Citing voter anger over soaring energy prices, Senator John McCain of Arizona, the Republican presidential nominee, recently argued that opening vast stretches of the country’s coastline to oil exploration would help America eliminate the dependence on foreign oil. "We have untapped oil reserves of at least 21 billion barrels in the United States. But a broad federal moratorium stands in the way of energy exploration and production," he said. "It is time for the federal government to lift these restrictions" [2].

Perhaps the financial giants of New York and London have benefited the most from the misleading implications of Peak Oil: “As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. . . . Since the advent of oil futures trading and the two major London and New York oil futures contracts, control of oil prices has left OPEC and gone to Wall Street. It is a classic case of the tail that wags the dog,” points out William Engdahl, a top expert on energy and financial markets [3].

Just as Peak Oil plays into the hands of manipulative speculators and beneficiaries of fossil fuel, so too can it be used by the champions of unilateral wars and military adventures, as it implies that war power and military strength are key to access or control of the “shrinking” or “soon-to-be-shrinking” oil. It thus provides fodder for the cannons of war profiteering militarists who are constantly on the look out to invent new enemies and find new pretexts for continued war and escalation of military spending—that is, for the looting of the national treasury, or public money.

By the same token that Peak Oil can serve as a pretext for war and military adventures, it can also serve as a disarming or pacifying factor for many citizens who accept the Peak Oil thesis and, therefore, internalize responsibility for U.S. foreign policy every time they fill their gas tank. In a vicarious way, they may feel that they own the war!

Thus, Peak Oil serves as a powerful trap and a clever manipulation that lets the real forces of war and militarism (the military-industrial complex and the pro-Israel lobby), and the main culprits behind the soaring energy prices (the Wall Street financial giants engaged in manipulative commodity speculation) off the hook; it is a fabulous distraction. All evils are blamed on a commodity upon which we are all utterly dependent.

Not only millions of lay-citizens, but also many scholars and academics have taken the bait and fallen right into this trap by arguing that recent U.S. wars of choice are driven primarily by oil and other “scarce” resources. More broadly, they argue that most wars of the future, like the recent and/or present ones, will be driven by conflicts over natural resources, especially energy and water—hence, for example, the title of Michael T. Klare’s popular book, Resource Wars [4].

As a number of critics have pointed out, this is reminiscent of Thomas R. Malthus’s theory of “scarcity” and “overpopulation.” Malthus (1766-1834), a self-styled British economist, argued that the woes and vagaries of capitalism such as poverty, inequality and unemployment are largely to be blamed on the poor and the unemployed, since they produce too many mouths to be fed, or too many hands to be employed.

In a similar fashion, Peak Oil implies that current crisis in energy (and other commodities) markets is to be blamed, in part, on less-developed or relatively poorer nations such as India and China for growing “too fast” and creating “too much” demand on “scarce” resources. (Similarities between the Peak Oil theory and the Malthusian theory of scarcity are further discussed below.)

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #4 on: February 26, 2011, 11:24:52 AM »
From pages 108-114 of Armed Madhouse by Greg Palast (all emphasis original):

------------------------------------

...we really should take a look at the theory that we went into Iraq to get its oil. A ride up “Hubbert’s Peak” will allow a clearer view of the real topic of this chapter: the geo-politics of petroleum.

No Peaking: The Hubbert Humbug

On March 7, 1956, geologist M. King Hubbert presented a research paper that would, a half century later, become the New Gospel of Internet Economics, the Missing Link that would Explain It All from the September 11 attack to the invasion of Iraq.

In his 1956 paper, Hubbert wrote:

    On the basis of the present estimates of the ultimate reserves of world petroleum and natural gas, it appears that the culmination of world production of these products should occur within a half a century (i.e., by 2006).

So get in your Hummer and take your last drive, Clive. Sometime during 2006, we will have used up every last drop of crude oil on the planet. We’re not talking “decline” in oil from a production “peak,” we’re talking “culmination,” completely gone, kaput, dead out of crude--and not enough natural gas left to roast a weenie.

In his 1956 treatise, Hubbert wrote that Planet Earth could produce not a drop more than one and a quarter trillion barrels of crude.

    We obtain a figure of about 1,250 billion barrels for the ultimate potential reserves of crude oil of the whole world.

That’s the entire supply of crude that stingy Mother Nature bequeathed for human use from Adam to the end of civilization. Indeed, our oil-lusting world will have consumed, by the end of 2006, about 1.2 trillion barrels of oil. Therefore, by Hubbert’s calculation, we’re finished; maybe in the very week you read this book we’ll suck the planet dry. Then, as Porky Pig says, “That’s all, folks!”

But the pig ain’t sung yet. Planes still fly, lovers still cry and smog-o-saurus SUVs still choke the LA freeway. Why aren’t our gas tanks dry? Hubbert insisted Arabia could produce no more than 375 billion barrels of oil. Yet, Middle Eastern oil reserves remaining today total 734 billion barrels. And those are “proven” reserves--known and measured, not including the possibility of a single new oil strike or field extension. Worldwide, ready-to-go reserves total 1.189 trillion barrels--and that excludes the world’s two biggest untapped fields, which could easily double the world reserve. (One is in Iraq, the other we'll get to in Chapter 4.)

In all fairness to the Hubbert Heads, there’s a more sophisticated, updated version of Hubbert’s theory. This is where the “peak” concept comes in. In this version of the Hubbert scripture, we ignore his dead wrong prediction of total crude available and look only at the up and down shape of his curve, the “peak.” The amount of oil discovered each year, Hubbert posited, will stop rising by 2000, then will crash rapidly toward zero when we will have used up our allotted 1.25 trillion barrels.

We haven’t crashed or even peaked. Oil production has risen year after year after year and discoveries have more than kept pace. Nevertheless, like believers undaunted by the failure of alien spaceships to take them to Mars on the date predicted, Peak enthusiasts keep moving the date of the oil apocalypse further into the future. In the new, revisionist models of Hubbert’s prediction, the high point in the curve of discoverable oil on our planet will come in a decade or so. Though we have a reprieve, goes the new theory, still, we’re running out of crude, dude! There’s only another twenty years left in proven reserves! Oh, my!

“It’s true that there’s only twenty years’ supply left-and that’s been true for the last hundred years,” Lewis Lapham told me over a decent sauterne at Five Points....Lapham of Harper’s magazine is the only editor in the hemisphere with hard knowledge of the petroleum market, insight he inherited legitimately: His family helped found Mobil Oil, the back half of what is now ExxonMobil.

He asked, “Why in the world would oil companies, or any company, announce that there’s lots of its product out there? You’d bust your own market. It’s better to say the cupboard’s bare.” As Lapham noted, we have been “running out of oil” since the days we drained it from whales.

OPEC’s big headache before the war shut down Iraq’s fields was that there was way too much oil. We were swimming in it and oil prices stayed low. The last thing oil companies want is more oil from Iraq, any more than soybean farmers want more soybeans from Iraq. Increasing supply means decreasing price.

This war is about the oil, but what about the oil? The Hubbert Peaksters think they know. They are convinced that Dick Cheney in his bunker is panicked that the world’s supply of oil is about to run out, and so to Iraq we go, to seize the last of it. Here’s the flaw in that argument: To believe that George Bush and Dick Cheney hustled us into Iraq to open up that nation’s untapped bounty of petroleum is to believe that these two oil Texans in the White House are deeply troubled that the price of oil will rise unless they get us more crude. But Dick and George get a rise out of the rise.

Have we peaked? The planet is producing today twice as much as the maximum predicted in 1956 by the “Peaking Man.” But the political uses of holy-sh*t-we’re-running-out-of-oil! has yet to peak.

Indeed, Bush and Cheney are more than happy to allow others to promote Hubbert Peak hysteria in the public. “We need Iraq’s oil” is used as a good bogeyman to get the public behind an invasion that promises to get Americans a fill-up for the family gas guzzler for less than a hundred dollars. Anti-war progressives seized on the Hubbert humbug as proof that Bush’s invasion was a war of “Blood for Oil.” Nuns, professors and rock stars were outraged. But the average American thinks, Blood for oil? That’s a BARGAIN.

The Shell Game

Hubbert’s predictions may have been astonishingly wrong but his little forty-page research report is, nevertheless, astonishingly important in understanding the mindset of Big Oil.

Almost everything you need to know about Hubbert and the agenda behind his crucial 1956 study is contained on its cover page. The oil doomsday pronouncement is “Publication No. 95, Shell Development Company, Houston, Texas.” Hubbert was the chief Consultant on general geology for Shell Oil and his “end of oil” paper was presented to the Texas meeting of the American Petroleum Institute. All else flows therefrom.

Every once in a while the landlords of the planet have to remind us to be grateful for their services. In 1956 it was Shell Oil’s turn and Hubbert was their man for the job. It was not a happy time for the oilmen of Texas. Shell and the other Seven Sisters, as Big Oil was then known, faced a heck of a problem: crude was cheaper than dirt--$2.77 a barrel, that is, a nickel a gallon-and sinking. Worse, they were finding more of the stuff all over the planet, meaning prices would fall further.

In March of that year, Hubbert presented the solution to his fellow oilmen at the API in Houston. He unveiled this magical chart. [viewable here]

Look closely. When Hubbert spoke, oil reserves worldwide were zooming heavenward. Despite the tide of petroleum rising around us, Hubbert declared that oil discoveries in the USA had begun to peak “as recently as 1951 or 1952" and that the world’s reserves would follow not long thereafter. He didn’t need to wink. His oil industry audience understood what oil giant Shell wanted America to believe: Oil isn’t abundant, it’s a scarce commodity and therefore...

1. It’s too cheap--so oil companies should, for the public’s own good, raise the price to conserve this precious resource.
2. We need to find an abundant alternative to fossil fuel.
3. We need to protect our access to dwindling sources of crude, by force if necessary.

Shell Oil, through Hubbert, sought, successfully, to change the way America thought of oil’s price, alternatives to oil and access to oil.

PRICE: The problem of falling oil prices was solved for Shell, brilliantly, in four years, in 1960, by the creation of OPEC. On paper, OPEC was created by national governments. If oil companies had created this cartel to fix prices, that would have made it a criminal conspiracy--cartels are illegal. But when governments conspire for the same purpose, the illegal conspiracy turns into a legitimate “alliance” of sovereign states. OPEC’s government cover makes the price-fixing perfectly legal, and Big Oil reaps the rewards....

Have we peaked? Worldwide oil reserves continue to rise even faster than America and China can burn it. Since 1980, reserves, despite our binge-guzzling, have risen from 648 billion to 1.2 trillion barrels. Yet, weirdly, despite the rising flood of discovered crude, its price quadrupled between 2001 and 2005. Supply choked, yet there’s no peak in sight....

So please don’t slander Mother Earth and say she’s run out of oil when it’s man-made mischief to blame. Evil, not geology, has a chokehold on energy; nature is ready to give us crude at $12 a barrel where it was just a few short years ago.



------------------------------------

http://www.youtube.com/watch?v=jL6pca_1DG4 (Alex Jones In Studio With Greg Palast: Big Oil & The Armed Madhouse)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #5 on: February 26, 2011, 11:26:02 AM »
http://www.prisonplanet.com/archives/peak_oil/index.htm

The Myth Of Peak Oil

Paul Joseph Watson & Alex Jones
PrisonPlanet.com
October 12 2005

Peak oil is a scam designed to create artificial scarcity and jack up prices while giving the state an excuse to invade our lives and order us to sacrifice our hard-earned living standards.

Publicly available CFR and Club of Rome strategy manuals from 30 years ago say that a global government needs to control the world population through neo-feudalism by creating artificial scarcity. Now that the social architects have de-industrialized the United States, they are going to blame our economic disintegration on lack of energy supplies.

Globalization is all about consolidation. Now that the world economy has become so centralized through the Globalists operations, they are going to continue to consolidate and blame it on the West's "evil" overconsumption of fossil fuels, while at the same time blocking the development and integration of renewable clean technologies.

In other words, Peak oil is a scam to create artificial scarcity and drive prices up. Meanwhile, alternative fuel technologies which have been around for decades are intentionally suppressed.

Peak oil is a theory advanced by the elite, by the oil industry, by the very people that you would think peak oil would harm, unless it was a cover for another agenda. Which from the evidence of artificial scarcity being deliberately created, the reasons for doing so and who benefits, it’s clear that peak oil is a myth and it should be exposed for what it is. Another excuse for the Globalists to seize more control over our lives and sacrifice more American sovereignty in the meantime.

The lies of artificial scarcity

The crux of the issue is that if oil was plentiful in areas in which we are being told by the government and the oil companies that it is not, then we have clear evidence that artificial scarcity is being simulated in order to drive forward a myriad of other agendas. And we have concrete examples of where this has happened.

Three separate internal confidential memos from Mobil, Chevron and Texaco have been obtained by The Foundation for Taxpayer and Consumer Rights.

These memos outline a deliberate agenda to gouge prices and create artificial scarcity by limiting capacities of and outright closing oil refineries. This was a nationwide lobbying effort led by the American Petroleum Institute to encourage refineries to do this.

An internal Chevron memo states; "A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins."

The Memos make clear that blockages in refining capacity and opening new refineries did not come from environmental organizations, as the oil industry claimed, but via a deliberate policy of limitation and price gouging at the behest of the oil industry itself.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #6 on: February 26, 2011, 11:31:18 AM »
Despite all of the above information, there are countless well-meaning conservatives and right-leaning libertarians who -- as an apparent result of Austrian School propaganda -- are incessantly exclaiming (in effect):

"Pay no attention to those price-manipulating oil speculators and artificial scarcity-creating oil barons behind the curtain! It's the printing press operator! He's the one responsible for all this!"

So when oil speculators drive up fuel prices, what's the solution? Shut off the printing press, of course.

When oil tycoons shut down refineries for the express purpose of creating artificial supply shortages, what's the solution? You guessed it -- shut off the printing press.

Now does everyone see why I get so frustrated and disgusted with the Austrian School?

       http://forum.prisonplanet.com/index.php?topic=202072.0
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Letsbereal

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #7 on: February 26, 2011, 11:43:32 AM »
How Goldman Sachs Hikes Our Food and Oil Prices At Will http://forum.prisonplanet.com/index.php?topic=197135.0

Man Made Peak Oil

The Americans can pump oil at will since they’ve got huge hidden sources like Lindsey Williams has been saying for years.

They first gonna hike up oil to round $200 a barrel before they gonna use these hidden sources.


Lindsey Williams: Globalists To Hijack Middle East, Cause Food Riots and Spike Gas Prices 1/2 http://www.youtube.com/watch?v=qa3X4paPCGo

Lindsey Williams: Globalists To Hijack Middle East, Cause Food Riots and Spike Gas Prices 2/2 http://www.youtube.com/watch?v=Db6sePbjhoQ


** Full Copy of Lindsey Williams ebook "The Energy Non Crisis" DOWNLOAD

http://z4.invisionfree.com/The_Great_Deception/index.php?showtopic=8966&st=0
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline lovkarpin

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #8 on: February 27, 2011, 04:51:04 AM »
When it looks like there's plenty or too much of something you can't get a nickel for it, but let it look like it may run short or run out and it's a sellers heaven.

Exactly

The argument that Peak-Oil deniers are receiving their information from Big Oil sponsored think tanks/research institution can be easly turned around. Especially such a cartel-ed industry that lobbies for big wars and supports dictatorships in the middle east would be the biggest beneficiary from spreading that Peak-Oil fear, not to mention that scarcity of resources is one of the greatest tools of the oligarchy to keep us in fear and accept increasing prices of many commodities.

from http://8020vision.com/2010/09/10/top-business-leaders-deliver-clean-energy-plan/

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #9 on: March 24, 2011, 03:06:59 PM »
http://www.prisonplanet.com/gas-to-hit-5-per-gallon-before-summer.html

Gas to Hit $5 Per Gallon Before Summer

Kurt Nimmo
Prison Planet.com
Thursday, March 24, 2011

Oil industry experts warn that the price for a gallon of gas will reach $5 before summer. They blame the unfolding conflict in Libya and across the oil-producing Middle East for exploding prices.



The price for a barrel of oil rose 31 cents to $106.07 today.

Oil prices do not follow the classic laws of capitalist supply and demand. Despite the fact the Energy Department reported a 2 million-barrel rise in crude oil supplies for the week that ended March 18, according to a survey by Platts, the energy information arm of McGraw-Hill Cos, the price of gas continues to rise. The increase represented 970,000 barrels.

Supply and demand is an irrelevant theory under globalist mercantilism.

“Supply and demand mean nothing to the oil industry. Basic economics teaches that if supply goes down, prices will go up. If demand goes down, prices go down. The inverse of each is also true, unless you are in the oil industry,” writes The Mercury in an op-ed. “Previous excuses for price increases of gasoline have been damage to refineries by Hurricane Katrina, a pipeline leak in Alaska, the increased cost of refining for the summer time driving season, the war in Iraq, and most anything that can be associated with gasoline.”

Confronted with an overall supply increase, the industry expects gasoline supplies to decline by 2 million barrels, distillate stocks to shrink by 1.5 million barrels and refinery utilization to increase by 0.3 percentage point to 83.7 percent according to Bloomberg.

Nielsen Wire reports that a 50-cent increase in gas prices would cost the typical U.S. household about $52.50 per month, and if prices were to rise two dollars, that would mean $210 a month, or more than $2,500 a year.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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How Wall Street Wagers Pump up Gas Prices
« Reply #10 on: April 04, 2011, 11:50:19 AM »
http://www.moneytalksnews.com/2011/03/31/wall-street-wagers-pump-gas-prices/

How Wall Street Wagers Pump up Gas Prices

Think Moammar Khadafy’s behind the rise in gas prices? The true answer may be a lot closer to home. Here’s what really influences the price of oil, and how you can hedge against higher prices.

By Stacy Johnson
MoneyTalksNews
March 31, 2011



Many Americans seem mystified when it comes to what’s happening with oil. They wonder – quite reasonably – how American gas and oil can gush so far so fast based on political upheaval in a country from which we buy no oil. And rather than making it more clear, many news reports make it more confusing by laying the entire blame at the doorstep of some current news event. From a story at CNN Money

    Investors are keeping a close eye on commodities, after crude oil rose to more than $106 a barrel early Monday on continued tensions in Libya.

In short, the media would have you believe that Moammar Khadafy’s problem is your problem. And while that’s partly true, that’s not the full story. Because the only way problems in Libya should be able to influence the price of oil is if those problems resulted in a supply problem. And there’s no supply problem.

From this recent article at CNBC:

    Youcef Yousfi, Algeria’s minister of energy and mines told CNBC that there is no supply panic, no shortage of oil and that part of the rise in oil prices is due to speculation.

So what the heck is going on here? To understand, let’s take a closer look at just how oil is priced.

Who’s not pushing up the price of oil

When you go to the store to buy a shirt, the wholesale price is established by the manufacturer, the retail price by the retailer. Simple. But when it comes to commodities like corn, wheat, soybeans, gold, copper, oil, gasoline and dozens of others, the story is entirely different.

The price of oil and gasoline aren’t set by Exxon, ConocoPhillips, or any other “manufacturer” – instead, they’re set in an auction market that takes place every weekday on a futures trading floor in New York, as well as other places around the world. As with an online auction like eBay or a live auction at Sotheby’s, buyers compete with one another, bidding up prices until the auction ends with a seller accepting the buyer’s offer – it’s called the “clearing price,” the price where supply and demand meet.

So the price you’re paying at the pump isn’t a reflection of what Exxon demands for the oil it has, nor is it related, at least directly, to the political stability of places like Libya. Instead, prices are tied to the number of buyers and sellers showing up at that day’s auction and the clearing price that results.

Who’s at the auction?

You would think that the auction for oil would have only two types of participants: companies that dig oil out of the ground and want to sell it, and companies that operate things like airlines and refineries and want to buy it. Since oil is auctioned in contracts of 1,000 barrels – 42,000 gallons – who else would go to an oil auction?

The answer is speculators. They have no oil to sell, and they certainly aren’t there to pick up 42,000 gallons of crude. They’re attending the auction simply to bet on the future price of oil. They’re hoping to buy (or sell) a bunch, wait for the price to rise (or fall), make money, and be out of their position long before the delivery date rolls around.

The problem is that if a bunch of well-heeled speculators hop on the buying bandwagon, they move prices – sometimes by a lot. That’s what’s been happening in recent weeks.

From another CNN Money story

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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http://www.globalresearch.ca/speculators-cartels-and-myths-of-scarcity-how-war-pushes-up-the-price-of-oil/24110

Speculators, Cartels and Myths of Scarcity: How War Pushes up the Price of Oil

by Dean Henderson



Global Research
April 3, 2011

Last week, as if to justify his Libyan crusade, President Obama echoed the prevailing “peak oil” myth, stating that “we must accept the new reality that from here on out, demand for oil will always exceed supply”.  It was music to the ears of the Rockefeller/Rothschild energy cartel and tax-dodger oil traders in Zug, Switzerland alike.  Both know full well that oil companies pay around $18/barrel to get crude out of the ground.

Big Oil rings up its usual quarterly record profit, speculators led by Goldman Sachs and Morgan Stanley tack on another $50/barrel and people get gouged at the gas pump.  Governments “tighten their belts”, economies contract and the myth of scarcity (root word: scare) encourages a race to the bottom for the global masses, alongside an historical concentration of power and wealth by the well-fed and fueled global elite.
 
A day after Obama’s endorsement of concentrated corporate power and casino capitalism, the US Department of Energy reported that the main US oil stage depot at Cushing, Oklahoma was holding 41.9 million barrels of crude oil, very near its capacity of 44 million barrels.  In other words, the US is awash in crude oil.
 
Here in South Dakota, the USDA announced that farmers plan to plant an additional 850,000 acres of corn- the most since 1931.  According to a March 10 bulletin from USDA, Brazil’s corn crop is 2 million tons higher than last year.  Yet corn futures on the Chicago Mercantile Exchange trade at record prices.
    
According to the same USDA report, “U.S. wheat ending stocks for 2010/11 are projected higher this month on reduced export prospects. Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat, particularly in Australia, and a slower-than-expected pace of U.S. shipments heading into the final quarter of the wheat marketing year.”  Yet wheat futures hover near record highs.
    
There is nothing alarming in the report about supplies of beef, poultry, eggs, milk, sugar or rice either.  Yet food prices continue to skyrocket.
    
The global elite know that both food and energy are paramount to life. Control over these two most basic needs means control over people.
    
After the 2008 acquisitions of Swift, Smithfield and National Beef Packers by Brazilian meat-packer JBS, there are three conglomerates that control over 80% of beef-packing in the US – Tyson, Cargill and JBS.  These same companies control most of the burgeoning cattle feedlot industry centered in SW Kansas and SE Colorado.  They also dominate the pork, chicken and turkey industries.  Cargill is the largest grain processor on the planet, handling a full one-half of global grain supplies.
    
Four giant companies are making a play to own not just all the oil, but virtually all energy sources on the planet.  In my book, Big Oil & Their Bankers…I dub them the Four Horsemen – Royal Dutch/Shell, Exxon Mobil, Chevron Texaco and BP Amoco.
    
These companies control crude oil from the Saudi well-head to the American gas pump and profit from every step of processing, shipping and marketing in between.  While reactionary Republicans blame environmentalists for the lack of US oil production, it was these oil giants who capped permitted wells in Texas and Louisiana and moved production to the Middle East – where Bangladeshi, Filipino and Yemeni workers are paid $1/day to work the oil rigs.
    
Royal Dutch/Shell and Exxon Mobil are the heaviest and most vertically integrated of the Four Horsemen. These behemoths have led the charge towards horizontal integration within the energy industry, investing heavily in natural gas, coal and uranium resources.
    
With the fall of the Berlin Wall, Eastern Europe, Russia, the Balkans and Central Asia were opened to Big Oil.  According to Kurt Wulff of oil investment firm McDep Associates, the Four Horsemen, romping in their new Far East pastures, saw asset increases from 1988-94 as follows: Exxon Mobil-54%, Chevron Texaco-74%, Royal Dutch/Shell-52% and BP Amoco-54%. The Rockefeller/Rothschild Oil Cartel had more than doubled its collective assets in six short years.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline WakeUpAmerica

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #12 on: April 04, 2011, 06:37:21 PM »
There's no doubt in my mind that 90% of the price is due to rampant uncontrolled speculation. I wrote this article about it a while ago:

http://endthelie.com/2011/03/08/speculation-artificially-raising-oil-price/

Today The Nation wrote about the problems surrounding speculation among traders in the market due to speculation about the uprisings in the Middle East. The fact is that oil production has not been affected by the tumultuous events unfolding in the region except for the relatively minor production of Libya. The rising prices of oil are based purely of speculation, not scarcity. This undermines the entire mechanism of supply and demand, proving that artificial scarcity is a tactic employed far too often by Crony-Capitalism. Indeed, some in the market are already betting on oil rising to $200 a barrel due to the “Day of Rage” reported to occur on March 11th in Saudi Arabia.

The unrestricted speculation in the market makes those on a fixed income or low income have more trouble paying for their daily expenses while making the traders even more rich. I am not a supporter of Socialism but this kind of artificial commodity raising by the traders in NYC needs to be stopped and post haste.

Obama has toyed with the idea of regulating excessive speculation on Wall Street in the past but we’ve yet to see any real changes in the ridiculous trading practices that are serving to grow the rich-poor dichotomy here in America. I definitely support a free market system but allowing traders to control the economy with no regulation whatsoever really makes no sense and unless you’re a trader, you’re not going to be served by the total lack of regulation.

For the Love of Money

I think this is similar to the issues surrounding the Federal Reserve system in that the American people are not able to see where their money is going or even what is actually behind the dollar. Just watch how the chairman of the Fed, Bernanke, cannot define a dollar and just skirts around the question to avoid the fact that the Fed has been printing money like crazy and increasing inflation.

Bernanke is nothing short of a criminal, and the fact that the American people are sitting by while the Fed is driving up inflation artificially and commanding the supposed “free market” system by their corrupt practices. The Fed is printing money without anything backing up the new money being brought in to the economy. This devalues the spending power of the dollars of every American and makes it even harder for impoverished individuals and individuals on a fixed income like senior citizens. The American people deserve to know where our money is coming from, what it is backed with, what it is really worth, and where it is going. Fight the corporate takeover of America and the Crony-Capitalist “free market” system we are currently subjected to. Educate other people on how the Fed operates, namely how the “Federal” Reserve is not remotely federal in the sense that it is completely private yet has 100% control over the supply of US Dollars (and thus inflation and value of the dollar). Not only can they print however much money they wish, as you saw in the above clip Bernanke tells us how the dollar isn’t even based on a gold standard and is instead worth however much the Fed determines. We need to enlighten those around us about the corporate interests that are taking over America with terrifying speed and how we have the constitutional right to know exactly where every cent of our tax dollars goes.

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #13 on: April 06, 2011, 05:07:29 AM »
from a economics student's point of view, i think there's a causative link.
I walk slowly, but never walk backwards.

Christian Louboutin
http://www.louboutinshoestoday.com/

Offline Geolibertarian

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The global oil casino benefits only its players
« Reply #14 on: April 07, 2011, 07:36:30 PM »
http://www.ft.com/cms/s/0/c39cf48a-607e-11e0-9fcb-00144feab49a.html#axzz1IsoGwIB9

The global oil casino benefits only its players

By Leah McGrath Goodman
FT.com
April 6 2011

Tensions in the Middle East and north Africa, we are told, lie behind the recent increase in global fuel prices, which Wednesday hit a 2 ½-year high. Yet while Brent crude this week stayed above $120 a barrel, in Tripoli petrol hovered at around 34p a gallon. And that is not a typo. The popular reason for why those closest to the fighting, in this case, suffer less than those farther afield, is Libya’s hefty subsidies. The less popular reason is that world energy markets have been carefully designed to profit from the slightest supply hiccup, even if there is little evidence of actual shortages.

The energy-trading fraternity has never let the facts get in the way of a good supply scare. True, this historically fragile market is vulnerable to price swings as demand threatens to climb faster than production. But there is more to it than that. Indeed, what President Barack Obama did not mention last week in his energy security speech about the faults of the global energy market could fill a Saudi oilfield.

Rising from the ashes of a failed potato exchange in downtown Manhattan, the modern-day oil market came to prominence in the 1980s. Its main architect was Michel Marks, the Paris-born son of a produce merchant, who to this day is none too happy with how his creation turned out. Over time, the market has mushroomed to include futures, options and swaps contracts traded on a handful of exchanges round the world. There is also a thriving private, over-the-counter market, where physical “wet” barrels change hands. Today, the oil market’s global daily value comes to about $600bn, even if limited transparency means exact figures remain elusive. The central market for oil is now part of the Chicago Mercantile Exchange, although it is making inroads into London in an apparent effort to escape new US rules under the Dodd-Frank act.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Is There a Financial Scam Behind the Rise in Oil and Food Prices?
« Reply #15 on: April 19, 2011, 04:35:55 PM »
http://www.prisonplanet.com/is-there-a-financial-scam-behind-the-rise-in-oil-and-food-prices.html

Is There a Financial Scam Behind the Rise in Oil and Food Prices?

Danny Schechter
Global Research
April 19, 2011

The global economy and its recovery, and the living standards of millions of plain folks, are now at risk from the sudden rise in oil and commodity prices.

Gas at the pump is up, and going higher. Food prices are following.

The consequences are catastrophic for the global poor as their costs go up while their income doesn’t. It’s menacing American workers too, who in large part have not seen a meaningful raise since the days of Reagan (keeping it this way is clearly behind the current flurry of attacks on unions).

Already, unrest in the Middle East and many African countries is being blamed for these dramatic increases. It seems as if this threat to global stability is being largely ignored in our media, one that treats the oil business as just another mystical world of free market trading.

Why is it happening? Why all the volatility? Is oil getting scarcer, leading to price increases? Is the cost of food, similarly, a reflection of naturally increasing commodity prices?

While it’s true that natural disasters and droughts play some role in this unchecked price inflation, it also seems apparent that something else is attracting increasing attention, even if most of our media fails to explore what is a political time bomb while most political leaders shrug their shoulder and ignore it.

President Obama recently said there is nothing he can do about the hike in oil and food prices.

Critics say the problem is that government and media outlets alike refuse to recognize what’s really going on: unchecked speculation!

Not everyone buys into this suspicion. In fact, it is one of more intense subjects of debate in economics. Princeton University economist Paul Krugman pooh-poohs the impact of speculation counter posing the traditional argument that oil prices are set by supply and demand.

The Economist Magazine agrees, summing up its views with a pithy phrase, “Speculation does not drive the oil price. Driving does.”

Others, like oil industry analyst Michael Klare of Hampshire College in the US see demand outdistancing supply:

“Consider the recent rise in the price of oil just a faint and early tremor heralding the oilquake to come. Oil won’t disappear from international markets, but in the coming decades it will never reach the volumes needed to satisfy projected world demand, which means that, sooner rather than later, scarcity will become the dominant market condition.”

Usually you hear this debate in scholarly circles or read it in political tracts where orthodox views collide with more alarmist projections about the oil supply “peaking.”

But officials in the Third World don’t see the subject as academic. Reserve Bank of India Governor Duvvuri Subbarao charges “Speculative movements in commodity derivative markets are also causing volatility in prices,” he said.

The World Bank is meeting on this issue this week because it is seen as a matter of “utmost urgency.”

“The price of food is a matter of life and death for the very poorest people in the world,” said Tom Arnold, CEO of Concern Worldwide, the international humanitarian agency, ahead of his participation at The Open Forum on Food at World Bank headquarters.

He adds, “…with many families spending up to 80% of their income on basic foods to survive, even the slightest increase in price can have devastating effects and become a crises for the poorest.”

Journalist Josh Clark argues on the website “How Stuff Works” that much of the oil speculation is rooted in the financial crisis, “The next time you drive to the gas station, only to find prices are still sky high compared to just a few years ago, take notice of the rows of foreclosed houses you’ll pass along the way. They may seem like two parts of a spell of economic bad luck, but high gas prices and home foreclosures are actually very much interrelated. Before most people were even aware there was an economic crisis, investment managers abandoned failing mortgage-backed securities and looked for other lucrative investments. What they settled on was oil futures.”

The debate within the industry is more subdued, perhaps to avoid a public fight between suppliers and distributors who don’t want to rock the boat. But some officials like Dan Gilligan, president of the Petroleum Marketers Association, representing 8,000 retail and wholesale suppliers has spoken out.

He argues, “Approximately 60 to 70 percent of the oil contracts in the futures markets are now held by speculative entities. Not by companies that need oil, not by the airlines, not by the oil companies. But by investors who profit money from their speculative positions.”

Now, a prominent and popular market analyst is throwing caution to the wind by blowing the whistle on speculators.

Finance expert Phil Davis runs a website and widely read newsletter to monitor stocks and options trades. He’s a professional’s professional, whose grandfather taught him to buy stocks when he was just ten years old.

His website is Phil’s Stock World, and stocks are his world. He’s subtitled the site, “High Finance for Real People.”

He is usually a sober and calm analyst, not known as maverick or dissenter.

When I met Phil the other night, he was on fire, enraged by what he believes is the scam of the century that no one wants to talk about, because so many powerful people armed with legions of lawyers want unquestioning allegiance, and will sue you into silence.

He studies the oil/food issue carefully and has concluded, “It’s a scam folks, it’s nothing but a huge scam and it’s destroying the US economy as well as the entire global economy but no one complains because they are ‘only’ stealing about $1.50 per gallon from each individual person in the industrialized world.”

“It’s the top 0.01% robbing the next 39.99% – the bottom 60% can’t afford cars anyway (they just starve quietly to death, as food prices climb on fuel costs). If someone breaks into your car and steals a $500 stereo, you go to the police, but if someone charges you an extra $30 every time you fill up your tank 50 times a year ($1,500) you shut up and pay your bill. Great system, right?”

Phil is just getting started, as he delves into the intricacies of the NYMEX market that handles these trades:

“The great thing about the NYMEX is that the traders don’t have to take delivery on their contracts, they can simply pay to roll them over to the next settlement price, even if no one is actually buying the barrels. That’s how we have developed a massive glut of 677 Million barrels worth of contracts in the front four months on the NYMEX and, come rollover day – that will be the amount of barrels “on order” for the front 3 months, unless a lot barrels get dumped at market prices fast.”

“Keep in mind that the entire United States uses ‘just’ 18M barrels of oil a day, so 677M barrels is a 37-day supply of oil. But, we also make 9M barrels of our own oil and import ‘just’ 9M barrels per day, and 5M barrels of that is from Canada and Mexico who, last I heard, aren’t even having revolutions. So, ignoring North Sea oil Brazil and Venezuela and lumping Africa in with OPEC, we are importing 3Mbd from unreliable sources and there is a 225-day supply under contract for delivery at the current price or cheaper plus we have a Strategic Petroleum Reserve that holds another 727 Million barrels (full) plus 370M barrels of commercial storage in the US (also full) which is another 365.6 days of marginal oil already here in storage in addition to the 225 days under contract for delivery. “

These contracts for oil outnumber their actual delivery, a sign of speculation and market manipulation, as oil companies win government authorizations for wells but then don’t open them for exploration or exploitation. It’s all a game of manipulating oil supply to keep prices up. And no one seems to be regulating it.

What Phil sees is a giant but intricate game of market manipulation and rigging by a cartel—not just an industry—that actually has loaded tankers criss-crossing the oceans but only landing when the price is right.

“There is nothing that the conga-line of tankers between here and OPEC would like to do more than unload an extra 277 Million barrels of crude at $112.79 per barrel (Friday’s close on open contracts and price) but, unfortunately, as I mentioned last week, Cushing, Oklahoma (Where oil is stored) is already packed to the gills with oil and can only handle 45M barrels if it started out empty so it is, very simply, physically impossible for those barrels to be delivered. This did not, however, stop 287M barrels worth of May contracts from trading on Friday and GAINING $2.49 on the day. “

He asks, “Who is buying 287,494 contracts (1,000 barrels per contract) for May delivery that can’t possibly be delivered for $2.49 more than they were priced the day before? These are the kind of questions that you would think regulators would be asking – if we had any.”

The TV news magazine 60 Minutes spoke with Dan Gilligan who noted that, investors don’t actually take delivery of the oil. “All they do is buy the paper, and hope that they can sell it for more than they paid for it. Before they have to take delivery.”

He says they make their fortunes “on the volatility that exists in the market. They make it going up and down.”

Payam Sharifi, at the University of Missouri-Kansas City, notes that even as the rise in oil prices threatens the world economy, there is almost total silence on the danger:

“This issue ought to be discussed again with a renewed interest – but the media and much of the populace at large have simply accepted high food and oil prices as an unavoidable fact of life, without any discussion of the causes of these price rises aside from platitudes.”

What can we do about that?
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

worcesteradam

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Re: Is There a Financial Scam Behind the Rise in Oil and Food Prices?
« Reply #16 on: April 19, 2011, 06:27:02 PM »

He says they make their fortunes “on the volatility that exists in the market. They make it going up and down.”


These are market makers, not investors. Seems to be a deceptive conflation of the two

Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #17 on: April 28, 2011, 11:47:06 AM »
There are those who continue to exclaim (in effect) to anyone foolish enough to listen:

"Pay no attention to those price-manipulating oil speculators and artificial scarcity-creating oil barons behind the curtain! It's the printing press operator! He's the one responsible for the rise in fuel prices!"

To them I ask the following:

If "dollar devaluation" is, as you've been insisting for several years now, the primary cause of any increase in fuel prices, does that mean the private banking cartel ceased its policy of dollar devaluation in July 2008 and began magically increasing the value of the dollar over the next several months?

If not, then why, on December 21, 2008, was the price of oil less than one fourth of what it was five months beforehand?

You can't have it both ways. If the value of the dollar is, by definition, the primary determining factor of fuel prices, then that means there had to have been a reversal of dollar devaluation during the five month time period in question.

Is there any evidence of such a reversal?

If not, then please stop insulting everyone's intelligence by insisting that price-manipulating oil speculators and artificial scarcity-creating oil barons play only a minor role in determining fuel prices.
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

worcesteradam

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #18 on: April 28, 2011, 06:54:03 PM »
why is gasoline the cheapest its ever been when measured in gold.
Thats what Peter Schiffs been saying

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Who's to blame for rising oil prices? Speculators
« Reply #19 on: May 04, 2011, 05:55:40 PM »
http://www.csmonitor.com/Commentary/Opinion/2011/0427/Who-s-to-blame-for-rising-oil-prices-Speculators

Who's to blame for rising oil prices? Speculators

Many blame Middle East turmoil or a weak dollar for rising oil prices, but they provide only a partial explanation. The chief culprit is speculation in oil markets. Fortunately, it can be stemmed with several regulatory steps.

By Steve A. Yetiv
The Christian Science Monitor
April 27, 2011

People around the world are feeling the pain at the pump. President Obama, whose reelection in 2012 may depend on a rebounding American economy, has promised that his energy plan could temper oil prices. Adding to the stakes, minutes from the US Federal Reserve meeting in March 2011 revealed concern that high oil prices could hurt the American economy.

So why have oil prices risen from around $36 dollars per barrel in December 2008 to $110 dollars per barrel now? And what can be done to lower them? Speculation in oil markets, which has little to do with oil demand and supply, is a key part of the problem, and it can be stemmed with several regulatory steps.

Oil prices are determined mainly by the combined behavior of oil traders on markets, the most important one being the New York Mercantile Exchange. When traders believe that oil prices will rise, they buy oil futures in the hope of selling them down the road for a profit. Such buying increases oil prices, and, eventually, the price of gasoline, heating oil, and many other products.

Oil prices started to rise because traders saw clear signs that the US and global economy were rebounding after the Great Recession, creating more demand for oil. The weakening dollar and fears that Middle East turmoil would disrupt oil supplies have also pushed prices higher.

While popular opinion and media coverage often blame Middle East turmoil for higher oil prices, it’s only a partial explanation. After all, the Saudis are pumping extra oil to make up for lost oil from Libya. And while oil traders and many others thought that unrest in Bahrain could spread to oil-rich Saudi Arabia, this has not happened. We now have more oil in the markets than we need, pushing the Saudis to actually lower their oil production.

Enter speculation.

How speculation drives up oil prices

Only some traders are speculators. Speculators are those who do not produce or use oil, but buy oil futures solely to make a profit on price changes. Data released in March 2011 by Bart Chilton, commissioner of the US Commodity Futures Trading Commission, suggest that speculators have increased their positions in energy markets by 64 percent since June 2008. That’s the highest level on record.

Oil prices have continued to rise despite mixed news on oil supply and demand, a diminishing chance of Saudi oil disruptions, and Japan’s human and economic catastrophe. Such price movements were even more dramatic when oil prices rocketed from $50 in February 2007 to over $147 per barrel in July 2008. Rapid swings in price, which are hard to connect to traditional market forces, indicate the influence of speculation.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
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Offline Geolibertarian

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Gas: Prices Headed Lower
« Reply #20 on: May 10, 2011, 12:20:53 PM »
http://moneywatch.bnet.com/economic-news/blog/financial-decoder/gas-prices-headed-lower/3990/

Gas: Prices Headed Lower

By Jill Schlesinger
CBS MoneyWatch.com
May 10, 2011

About a month ago, I told one of my favorite TV producers that gas prices would drop as soon as “all the idiots who piled into the oil futures market got shaken out.” That time may now be upon us.
 
Last week, crude oil was down nearly 15 percent, closing under $100 dollars a barrel. While there was a good bounce yesterday, after the close, the CME Group announced a third round of new margin rules that are designed to limit speculation in the oil market, so those gains might be short-lived.
 
I’m now hopeful that crude oil will remain near $100 per barrel and accordingly, gas prices are likely to drop in the next few weeks. I discussed the dynamics of the oil and gas markets this morning on CBS TV affiliates:

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

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How the Kochs' Shady Oil Speculation May Be Driving Up Gas Prices
« Reply #21 on: June 14, 2011, 04:09:36 PM »
How the Kochs' Shady Oil Speculation May Be Driving Up Gas Prices

Out-of-control speculation has doubled the current price of crude oil. The Kochs pioneered the risky speculation industry that dominates the world’s oil markets today.

by Lee Fang
AlterNet
June 13, 2011

In April, ThinkProgress caused a stir when we uncovered a series of Koch Industries corporate documents revealing the company’s role as an oil speculator. Like many oil companies, Koch uses legitimate hedging products to create price stability. However, the documents reveal that Koch is also participating in the unregulated derivatives markets as a financial player, ]stir[/url] when we uncovered a series of Koch Industries corporate documents revealing the company’s role as an oil speculator. Like many oil companies, Koch uses legitimate hedging products to create price stability. However, the documents reveal that Koch is also participating in the unregulated derivatives markets as a financial player, buying and selling speculative products that are increasingly contributing to the skyrocketing price of oil. Excessive energy speculation today is at its highest levels ever, and even Goldman Sachs now admits that at least $27 of the price of crude oil is a result from reckless speculation rather than market fundamentals of supply and demand. Many experts interviewed by ThinkProgress argue that the figure is far higher, and out of control speculation has doubled the current price of crude oil.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
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worcesteradam

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #22 on: June 14, 2011, 04:20:28 PM »
I know they extract it for $5 a barrel
so +5 for transport
the true price is $10 a barrel

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Study finds financial speculation in oil led to higher gasoline prices
« Reply #23 on: July 06, 2011, 06:59:42 PM »
http://www.uscatholic.org/news/2011/06/study-finds-financial-speculation-oil-led-higher-gasoline-prices

Study finds financial speculation in oil led to higher gasoline prices

By Dennis Sadowski
Catholic News Service
June 30, 2011

WASHINGTON (CNS) -- Excessive speculation in crude oil futures on the part of financial traders added 83 cents to the cost of a gallon of gasoline in May, two University of Massachusetts professors reported.

The finding by Robert Pollin and James Heintz of the Political Economy Research Institute at the University of Massachusetts, Amherst showed that the influx of billions of dollars chasing oil futures led the average price of a gallon of gasoline nationwide to rise to $3.96 in May.

Pollin said if normal market forces, traced over decades, were in play, a gallon of gas would have cost $3.13 in May.

The revelation raised concerns among faith-based and public interest advocates that poor families worldwide are being further pinched because they are faced with using a larger share of their limited income for food and basic necessities.

"The problem is through the investment in commodity derivatives, (the speculators) are directly contributing to the increase in prices of gas and food around the world," explained David Kane, a staff member at the Maryknoll Office for Global Concerns in Washington, which is part of the Americans for Financial Reform coalition.

"The price of gasoline in the U.S. affects poor people more than it does affect rich people," he told Catholic News Service. "But the travesty is for people living on $1 or $2 a day who are spending a huge percentage of their income on food. So when food and gas prices go up, they are much more directly affected ... much more than we probably feel it here in the U.S."

Pollin said the study, "How Wall Street Speculation Is Driving up Gasoline Prices Today," traced the rapid rise and fall of commodities in recent months to the lack of regulation of financial markets.

"Links between spikes in oil prices and food prices is very clear. Having a highly speculative oil market feeds into food prices," Pollin explained.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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Oil Speculation At Chevron Laid Bare For All to See
« Reply #24 on: July 21, 2011, 03:22:39 PM »
http://www.huffingtonpost.com/raymond-j-learsy/oil-speculation-at-chevro_b_904289.html

Oil Speculation At Chevron Laid Bare For All to See

by Raymond J. Learsy
TheHuffingtonPost.com
7/20/11

According to an accidentally leaked email, and reported by the Wall Street Journal ("Chevron's Email 'Oops' Reveals Energy Giants Sway Over Markets" 07.17.11) less than a week ago Chevron traders held oil and product contracts of 27 million barrels of oil in the physical and derivatives markets - an amount exceeding the total daily consumption of oil in the United States by some 8 million barrels.

Yes, there is some rationale, being an oil producer and refiner to maximize or protect the price of their production. But Chevron's oil/oil product trading activities goes far beyond hedging. They, as producers are in the catbirds seat to know what is happening in the market, and as the Wall Street Journal points out that "companies' traders take advantage of their inside view of the oil market to place speculative bets..." Speculative bets that have been enormously profitable for Chevron and likely for every other oil company. For Chevron alone trading profits recorded this year through July 14 on crude oil totaled almost $100 million while fuel oil posted a trading profit of $263.9 million (makes you feel warm and cozy up there in Maine??). And on.

Taking advantage of their insider status they are supported by a regulatory system that isn't functioning (also please see "Time to Dismiss the CFTC Chairman and His Commissioners" 12.27.10). Additionally, commodity markets are not subject to the strict insider trading rules that govern equities trading. And according to the WSJ, Chevron's activities illustrate the magnitude of the company's role in setting global prices. One can multiply that by a reasonably large percentage of other producers the likes of Chevron, and probably throw in OPEC and Russian Oil players, and one begins to understand why the oil markets and oil pricing have nothing whatsoever to do with that oil industry mantra, "don't blame us, its all about supply and demand."

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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Oil reaches a 2011 low; gasoline prices should fall
« Reply #25 on: August 09, 2011, 02:47:12 PM »
http://latimesblogs.latimes.com/money_co/2011/08/oil-reaches-a-2011-low-gasoline-prices-should-fall.html

Oil reaches a 2011 low; gasoline prices should fall

by Ronald D. White
Los Angeles Times
August 8, 2011

Oil prices have hit new lows for the year following Standard & Poor's downgrade of the U.S. credit rating, but analysts said that there was little good news in the commodity's decline. They likened the situation to an obese man who is finally losing weight, but dropping the pounds because of a serious illness and not because of something positive like increased exercise.



"The lower prices in this situation are a very ominous sign. Oil is crashing because there is less demand for it. There haven't been any really good economic signs that we can attribute to this," said Fadel Gheit, senior energy analyst for Oppenheimer and Co. in New York. Gheit added that the commodity soared this past spring, in part, because it was being driven by market speculators and not because of real demand and supply fundamentals. "It was another bubble," Gheit said.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

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Jordan

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U.S. oil speculative data released by Senator, sparking ire
« Reply #26 on: August 20, 2011, 10:27:39 AM »
WASHINGTON (Reuters) - Oil trading data that exposed the extensive positions speculators held in the run-up to record high prices in 2008 were intentionally leaked by a U.S. senator, sparking broader concern about industry confidentiality as Congress moves on Wall Street reform.

Senator Bernie Sanders, a staunch critic of oil speculators, leaked the information to a major newspaper in a move that has unsettled both regulators and Wall Street alike.

In a June 16 e-mail reviewed by Reuters, a senior policy adviser to Sanders discusses how his office received private data with the names and positions of traders and forwarded it exclusively to a Wall Street Journal reporter.

The e-mail, which also attaches two files with the data, was sent to Public Citizen's Tyson Slocum asking him to review it and speak with the newspaper about his observations.

In a statement from Sanders provided to Reuters, Sanders said he felt the data needed to be publicly aired.

"The CFTC has kept this information hidden from the American public for nearly three years," he said. "This is an outrage. The American people have a right to know exactly who caused gas prices to skyrocket in 2008 and who is causing them to spike today."

The leaked information has sparked concern at the Commodity Futures Trading Commission, which is legally prohibited from releasing confidential information that identifies trader positions and identities.

The leak also raises broader questions as U.S. regulators gear up to collect massive new amounts of private data from market players on everything from swaps and hedge funds to blueprints for how large financial firms can be liquidated. The breach of data could make Wall Street less reluctant to hand over sensitive information if they fear it is not appropriately safeguarded.

"This type of incident will have a chilling effect on derivatives trading in the U.S. because market participants will be reluctant to take the risk that their positions will be exposed to the public-and their competitors," John Damgard, president of the Futures Industry Association, said in a statement sent to Reuters.

Republicans have already raised concerns in recent hearings about the Treasury's new Office of Financial Research created by Dodd-Frank, and whether its collection of data from hedge funds and banks may constitute a regulatory overreach.

Although the CFTC is barred from releasing confidential data, the law does require the CFTC to hand over such information if a Congressional committee acting within its proper authority requests it. Once it is in the hands of Congress, there is nothing to prevent lawmakers from releasing it publicly.

The leaked data contains long and short positions held by oil traders in 2008, the same year that oil prices spiked to $147 a barrel. Critics at the time accused oil speculators of driving up prices, leading lawmakers to later insert a provision into the Dodd-Frank Wall Street overhaul law compelling the CFTC to place stricter limits on how many commodity contracts any one trader can control.

Among the kinds of traders accused of excessive speculation included passive long investors such as pension funds, which often seek exposure to commodities markets indirectly by going through an intermediary swap dealer such as such as Goldman Sachs and Morgan Stanley.

The data that was leaked to the Wall Street Journal was compiled by the CFTC in 2008 during a "special call" in which the agency sought crude oil position data from swap dealers so they could piece together market activity occurring both on and off the exchange, people familiar with the matter said.

The CFTC first became aware of the breach of the data after a staffer from Sanders' office sent the agency an e-mail with the information and asked the CFTC's chief economist to discuss it more.

The agency began exploring internally whether or not any staffers were responsible for the leak, and concluded that no CFTC employees were involved, according to people familiar with the matter.

It is unclear exactly how Sanders acquired the private information, and a spokesman declined to say.

But people familiar with the matter say the data later obtained by Sanders was first formally requested by the U.S. House Energy Committee. From there it somehow migrated over to the U.S. Senate.

http://finance.yahoo.com/news/US-oil-speculative-data-rb-4160467525.html

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Leaked Documents Reveal Major Speculators Behind 2008 Oil Price Shock
« Reply #27 on: September 17, 2011, 11:33:53 AM »
http://thinkprogress.org/green/2011/09/15/317330/leaked-cftc-oil-speculation-data/

Leaked Documents Reveal Major Speculators Behind 2008 Oil Price Shock: Hedge Funds, Koch, Big Banks, Oil Companies

By Lee Fang
ThinkProgress
9/15/11

Last month, Sen. Bernie Sanders (I-VT) leaked confidential data about oil speculation to a number of media outlets, including the Wall Street Journal. Ordinarily, the Commodity Futures Trading Commission, the regulatory body that oversees futures trading, does not provide identities of speculators to the public. However, the data leaked by Sanders provides a rare snapshot into the trading volumes by major speculators right before the oil price spike in the summer of 2008.

As experts from Stanford University [.pdf], Rice University [.pdf], the University of Massachusetts [.pdf], and authorities have concluded, rampant oil speculation was the prime driver of the record high prices for crude oil three years ago.

(To view a copy of the data, click here for documents leaked by Sanders. To view an organized spreadsheet, click here.)

Notably, the top speculators are noncommercial players, meaning they are companies that simply and buy and sell crude contracts with no interest in actually refining and selling the product.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

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Offline Letsbereal

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #28 on: September 17, 2011, 11:41:29 AM »
So how it's done?

How Goldman Sachs Decides the Oil Price at Wish with ROUND-TRIP TRADEShttp://forum.prisonplanet.com/index.php?topic=197047.0
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Offline TahoeBlue

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #29 on: September 17, 2011, 01:29:57 PM »
So how it's done?

How Goldman Sachs Decides the Oil Price at Wish with ROUND-TRIP TRADEShttp://forum.prisonplanet.com/index.php?topic=197047.0

Quote
A Congressional investigation into energy trading in 2003 discovered that ICE was being used to facilitate “round-trip” trades.

Round-trip” trades occur when one firm sells energy to another and then the second firm simultaneously sells the same amount of energy back to the first company at exactly the same price.  No commodity ever changes hands.

But when done on an exchange, these transactions send a price signal to the market and they artificially boost revenue for the company.

This is nothing more than a massive fraud, pure and simple
.

This same device is being used in the "high frequency" trading scam. Also other stock option trading scams...
Behold, happy is the man whom God correcteth: therefore despise not thou the chastening of the Almighty: For he maketh sore, and bindeth up: he woundeth, and his hands make whole ; He shall deliver thee in six troubles: yea, in seven there shall no evil touch thee. - Job 5

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Once again, speculators behind sharply rising oil prices
« Reply #30 on: February 25, 2012, 06:19:03 AM »
http://www.miamiherald.com/2012/02/21/2653429/once-again-speculators-behind.html

Once again, speculators behind sharply rising oil prices

BY KEVIN G. HALL
The Miami Herald
Feb. 21, 2012

WASHINGTON -- U.S. demand for oil and refined products - including gasoline - is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to consume all that it makes.

Yet oil and gasoline prices are surging.

On Tuesday, oil rose past $106 a barrel and gasoline averaged $3.57 a gallon - thanks again in no small part to rampant financial speculation on top of fears of supply disruptions.

The ostensible reason for the climb of crude prices on the New York Mercantile Exchange, where contracts for future delivery of oil are traded, is growing fear of a military confrontation with Iran in the Persian Gulf's Strait of Hormuz, through which 20 percent of the world's oil passes.

Other factors driving up prices include last month's bankruptcy of Petroplus, a big European refiner, and a recent BP refinery fire in Washington state that's temporarily crimped gasoline supply along the West Coast; gas now costs an average of $4.04 a gallon in California.

While tension over Iran has ratcheted up in the past few months, the price of oil and gasoline has leaped far beyond conventional supply and demand variables. Financial speculators are piling into the market, torquing the Iranian fear factor into ever-higher prices.

"Speculation is now part of the DNA of oil prices. You cannot separate the two anymore. There is no demarcation," said Fadel Gheit, a 30-year veteran of energy markets and an analyst at Oppenheimer & Co. "I still remain convinced oil prices are inflated."

Consider that light, sweet crude trading on the NYMEX changed hands at $79.20 a barrel just four months ago, but soared past $105 a barrel Tuesday afternoon, partly on news that Iran would halt shipment of oil to Britain and France. But those countries already had stopped buying Iranian oil. And Didier Houssin, the International Energy Agency's director for energy markets and security, said that "there are alternative supplies that can make up for any loss of Iranian exports," The Wall Street Journal reported.

Still, oil's price shot up because it trades in financial markets, where Wall Street firms and other big financial players dominate the trading of oil, even though they have no intention of ever taking possession of the oil whose contracts they are trading.

Since oil prices are the biggest component in the price of gasoline, pump prices are soaring.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Letsbereal

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #31 on: February 25, 2012, 09:33:08 AM »
I think the oil spike will contain these elements:

- Money Printing

- Artificially created shortages (fake peak oil)

- Dollar depreciation

- Speculation and fraud like the ROUND-TRIP TRADES

- War angst

But bottomline: Oil prices are decided upon in some London office like the LIBOR
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Offline Geolibertarian

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Oil Speculators Cash in on Washington's Lapse
« Reply #32 on: February 25, 2012, 11:07:37 AM »
http://www.thestreet.com/story/11433108/1/oil-speculators-cash-in-on-washingtons-lapse.html

Oil Speculators Cash in on Washington's Lapse

By Chris Markowski
TheStreet.com
2/25/12

NEW YORK (TheStreet) -- In 2008, then candidate Obama said gas prices were exorbitant because of failed policies. This week he said they were high because of increasing global demand combined with pockets of unrest.

I'm not going to dignify either contention with a reasoned response.

Here's the point to keep in mind: Neither the administration nor the Congress wants clarity on energy prices. The reason for this is simple. They are too indebted to the financial services industry that is capitalizing on the confusion to do anything about it.

Whether this is a sin of omission or commission is too scary to ponder. I'd like to think it's the former, but the gains made by the financial services industry in lobbying sometimes makes me think it could be the latter.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Letsbereal

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Peter Schiff on FOX Business News about Oil 02/24/12
« Reply #33 on: February 25, 2012, 11:16:13 AM »
Peter Schiff on FOX Business News 02/24/12 http://www.youtube.com/watch?v=vA6mDG7mv1I

These people on the trading floor are there for nostalgic reasons right.

Cause do they realy think they can beat HFT LOlz
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Offline Valerius

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #34 on: February 25, 2012, 11:23:53 AM »
Has the whole world pretty much forgotten those memos?
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Offline jerryweaver

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #35 on: February 25, 2012, 01:18:30 PM »
Found over at  http://www.rumormillnews.com/cgi-bin/forum.cgi?read=231568

Seems like a drop in the bucket, a few heads step down, but the machine rolls on.


'Big Oil' and 'Big Pharma' CEO's Starting to Step Down!


Malcolm Brinded departure from Royal Dutch Shell

22/02/2012: Shell announces today that Malcolm Brinded has agreed to step down as an Executive Director of the Company with effect from 1 April 2012. Mr Brinded has agreed to remain at Shell until 30 April 2012 in order to assist with the transition of his responsibilities.

Mr Brinded is currently Executive Director Upstream International. He first joined Shell in October 1974 and has served the company in Brunei, the Netherlands, Oman and the United Kingdom. In 1998 he became Managing Director of Shell UK Exploration and Production and from 1999 until 2002 he was Shell Country Chairman in the UK. He has been a member of the Royal Dutch Shell plc Board (and its predecessors) since 2002. Prior to his current role, he was Executive Director in charge of Exploration & Production.

Royal Dutch Shell Chief Executive Peter Voser commented “Malcolm Brinded has had a most distinguished career over many years and has made an important contribution to Shell’s success during that time. He leaves the Upstream International business in a strong position, well-placed to deliver on its targets and pursue the next stage of Shell’s growth.”

Read more: http://royaldutchshellplc.com/2012/02/22/malcolm-brinded-departure-from-royal-dutch-shell/

~~~~~~

Johnson & Johnson CEO Resigns After Series Of Missteps

NEW YORK (CNNMoney) -- Johnson & Johnson CEO Bill Weldon, will step down in April, the pharmaceutical giant announced Tuesday.

Alex Gorsky, J&J's head of pharmaceuticals in Europe, the Middle East and Africa, will take over in Weldon's place. Weldon will remain the company's chairman.

Weldon, who was with the company for more than 40 years, was for a long period one of the most respected executives in the drug industry. But a series of missteps over the past two years damaged his and his company's once sterling reputations.

Recall after recall hit J&J division McNeil Consumer Healthcare, culminating in the Food and Drug Administration's takeover of three of the company's factories that manufactured Tylenol last March.

Over the past two years, J&J recalled numerous over-the-counter drugs, including Topomax (odor), Mylanta (undisclosed alcohol), Tylenol (musty smell), and hip implants (required more surgery).

Read more: http://www.wcyb.com/nationalnews/30510455/detail.html


Offline Valerius

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #36 on: February 26, 2012, 11:38:11 AM »
Internal Memos Show Oil Companies Intentionally Limited Refining Capacity To Drive Up Gasoline Prices

9/7/2005

© Consumer Watchdog, all rights reserved


http://www.consumerwatchdog.org/newsrelease/internal-memos-show-oil-companies-intentionally-limited-refining-capacity-drive-gasoline

"Group: Internal memos show oil companies limited refineries to drive up prices"

Originally published on Wednesday September 7, 2005.

http://rawstory.com/news/2005/Group_Internal_memos_show_oil_companies_limited_refineries_to_drive_up__0907.html
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Offline Geolibertarian

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #37 on: February 26, 2012, 12:27:32 PM »
Internal Memos Show Oil Companies Intentionally Limited Refining Capacity To Drive Up Gasoline Prices

Yet if you rightly criticize this sort of blatant profiteering, you'll immediately be accused of spewing "anti-capitalist" rhetoric.

Why?

Because in the economic fantasy world of royal libertarians, there is no fundamental difference between (a) honestly earned profit and (b) profit derived from privilege (see this, this and this).

Of course in reality the very opposite is true, and that's why they're always having to mold reality so that it conforms to the anarcho-capitalist dogma of the privatize-everything Austrian School instead of the other way around.

Case in point:

    "The oil companies have nothing to do with the global price of gasoline."

-- Porter Stansberry, December 29, 2010, http://www.youtube.com/watch?v=hATEK5rmYRU
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Valerius

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #38 on: February 26, 2012, 12:44:35 PM »
I thought I remembered that there was also a claim that there were some tiny companies trying to compete with the bigs and the bigs sought regulations that drove the little guys out of the game. I could not find such references in 2012 but if that's true it would tend to support the libertarian model that what we see is nothing like a free market-- even if self-described capitalists defend it.
"No man can put a chain about the ankle of his fellow man without at last finding the other end fastened about his own neck."  -Frederick Douglass

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Re: Is there a causative link between oil speculation and fuel prices?
« Reply #39 on: February 26, 2012, 01:16:54 PM »
I thought I remembered that there was also a claim that there were some tiny companies trying to compete with the bigs and the bigs sought regulations that drove the little guys out of the game. I could not find such references in 2012 but if that's true it would tend to support the libertarian model that what we see is nothing like a free market-- even if self-described capitalists defend it.

The problem is that, because of the ridiculously false Austrian School "capitalism"-vs.-Marxist "socialism" paradigm, whenever an economic left-winger criticizes something, the Pavlovian response of economic right-wingers is to immediately rush to the defense of that something. And economic left-wingers, of course, often have the same knee-jerk reaction whenever an economic-right winger criticizes something. It's all very childish when you really stop and think about it.

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"Marx's biggest error was to suppose that society could be improved by grand design: that the solution was to impose a new order, rather than to abolish privileges embedded in the existing order. His scheme actually rescued the aristocracy he had condemned, as it required an aristocracy to run it, and it pitted labor against capital, when, in fact, true capital is nothing more than the fruits of labor, and is a natural ally of labor against privilege....

"The errors of anti-Marxists derive mostly from overreaction -- from denying whatever Marx asserted, replacing Marxist half-truths with equally false anti-Marxist half-truths. Often, in so doing, they fall into the trap of accepting underlying Marxist assumptions....

"While Marx treated land as capital to attack it, anti-Marxists treat land as capital to defend it. This not only accepts the Marxist redefinition of capital, but causes anti-Marxists to say absurd things about land that make sense only with regard to true capital.

"Buying into the Marxist equation of wealth and privilege, anti-Marxists defend privilege as if it were wealth. They do this with regard not only to land, but to banking, incorporation, franchises, the overextension of patents, etc. While there are sometimes glimmers of theoretical distinctions, there is a near constant defense of those parties whose wealth comes almost entirely from capitalized privilege, and only minimally from true capital. Such errors defy logic, are inconsistent with classical liberalism, and are intuitively rejected by the unindoctinated."


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"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0