Posted on 09/01/2005 3:08:36 PM PDT by ex-Texan
Germany has accuses the US and "hedge" funds, which cause speculations from one country to another, for the high oil prices which now exceed $70.
The US is partly responsible for the high oil prices as it has not expanded its refinery capacity for a long time, said German Economy Minister Wolfgang Clement in a statement to German radio. High oil prices were not due to the oil companies but due to the US administration's economy policy, he said, and he hopes the US administration would change its attitude and take action to increase its oil refinery capacity.
Indicating that Hurricane Katrina hitting US oil production facilities and refineries would deteriorate the situation, Clement said America would demand more oil from Europe and further increase pressure on oil prices.
Clement also accused the "hedge" funds of the high oil prices. Speculations created by these funds is influential in increasing oil prices according to the German minister, estimating that the share of hedge funds speculations was around 18 percent on the barrel price of oil, reaching $70. Clement called for international observation for hedge funds speculations.
The term "hedge" fund is used for the activity of rich investors who take their money of hundreds of thousands of dollars from one market to another in order to accumulate interests with extraordinary profits. The most famous example of the investment companies dealing with these types of funds are the companies owned by famous American business tycoon George Soros.
US open strategic reserves
In the meantime, US Energy Secretary Sam Bodman said the White House will open the strategic oil reserves for use in order to balance energy production shortages caused by the Hurricane Katrina, one of the most violent hurricanes in the US history. After Bodman's statement, the per barrel price of US light crude oil dropped below $70, and the barrel of Brent type crude dropped below $67. A US Energy Department representative said the oil flow might begin towards refineries in the Gulf of Mexico Thursday. The US administration holds nearly 700 million barrels of oil stocks in Texas and Louisiana underground salt caves for use in case of any shortage in oil supply. The reserves at issue are not meant to be used to affect world oil prices, but in case of any natural disaster or war.
Hey they already blamed Bush for the hurricane, global warming, etc.
Ignoring the little fact that over geologic time the Earth has cooled and heated up many times...but, hey, when have the Germans let the facts get in the way..
The Germans ceased to be relevant 65 years ago.
Tell us something we don't know, Sigfried.
The concept was we need more refineries, I agree.
How is it the administrations policy about refineries? Where does this puke get his information.
Democrats' inaction and catering to special environmental interests has started America sliding towards 3rd world status.
Maybe now Americans will wake up and just say no to Democrat stonewalling energy independence.
We haven't been able to trust the Germans since they bombed Pearl Harbor.
Build refineries, don't emit C02, no war with out UN approval, help us in Bosnia, etc, etc.
Do these people realize they are making enemies with the most powerful nation on Earth?
Keep funding Russia's emerging fascism, guys.
memo to germany: if you had an economy, you might use some oil too.
"Germany has accuses the US and "hedge" funds"
OH PUT A F'ING SOCK ON IT!! ughhhhh, I'm so sick of those bastards kicking us when we're down!
Why did the United States government construct a bunch of huge oil storage depots with no method of refining the stored product? Why didn't they construct some refineries to go along with these depots? If the private sector didn't want to build them for one reasons or another, so what? If the federal government doesn't belong in the refinery business, then why do they belong in the fuel depot business? Looks like another case of government incompetence to me. Perhaps the Germans have a point.
Blaming speculators is nonsense. Commodities can be very volatile. When something happens to disrupt production prices go up. We may as well blame economics. Was the rise to 70 speculation? Maybe. If so, oil prices will come down hard and we will have relatively cheaper prices. I just don't get why government leaders are so willing to use to slander "price gouging" on oil producers but not say clothing manufacturers, or Californian produce growers.
What is the countdown til Herr Schroeder and his Socialist ilk are run out of town.
Scroeder will take a dive in the election in a few weeks so why not desparately spew crap to the hate America crowd? A vote for Schroeder is a vote against Bush and the US.
I think we better keep an eye on Germany. Some of the lunacy coming out of there sounds familiar. Next the Japanese will start blaming us for stuff.
You're on a roll.
I hope that is a joke?
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