2) The Dollar is still losing value
3) Therefore, the cost of oil in Dollars goes up, even if the value of oil remains constant.
Whew, that was hard.
Maybe if we could drill our own oil and not depend on others we could have cheaper fuel costs here...
Interesting...ping for later...thanks.
Will read later.
What I know is that I am PISSED at environmental wackos and DEMONcrats for NOT allowing oil drilling and promoting the search for another alternative. It’s catching up with us.
Ping to self to read after work.
Weak dollar and speculators having been fooled by the great anticipated massive hurricane season are now betting on a colder than usual winter. Get the crack-head speculators out of the market and let real supply and demand manipulate the prices then we’ll see the real market cost not just some whacked-out “fear” premium.
Lot to read, but no mention of oil futures contracts being the main catalyst for what could be a legitimate explosion of this oil bubble—right before the 2008 elections...
Why? Because of the Iraq war.
Maybe because we are a nation of reactionaries sitting on a ton of resources and yet, still dancing to the tune of our masters at OPEC. I’m not speaking of government subsidized ethanol that isn’t viable and that is causing food prices to inflate. I am talking shale oil and diesel from coal. We could easily be energy independent within 5-10 years. Well, that is if we weren’t a bunch of mincing reactionaries allowing the anthropogenic global warming scammers to dictate our energy policy.
Greed?
Oil and gasoline are skyrocketing for two main reasons
1. The Dollar: While this is the lesser reason, it does figure in the equation. With commodities priced in dollars, inflation in the US drives safe havens in commodities.
2. Traders: This is where it is really at. There is so much money chasing the market, from everywhere: Mideast, China, Europe, Emerging Markets, Developing Markets, the US Mutual and Hedge funds, as well as equity markets. All that money chasing a return and "SAFETY" make the Commodities market subject to wild girations. Much of this money was in the Financial markets before the collapse. Now, all that money can move the market anyway it wants to. As someone on CNBC yesterday said, there is a lot Hanky Panky goin on!"
Mike