Oil The never ending story

Fort Worth star Telegram ^ | 2.27.2012 | Ed Wallace

[q_an_a]

For weeks the headlines have screamed that U.S. gasoline prices have hit an all-time-record high for this time of year. Other media outlets continue to speculate on the impact of the EU's proposed ban on Iranian oil, which would keep refiners based on the Continent from using it. Some question whether this new record winter price for oil will derail what looks like a reasonably strong economic recovery. And speculation on how higher gasoline prices will affect new car sales seems popular. Welcome to 2012 and our longest-running national melodrama: Oil.

Read more here: http://www.star-telegram.com/2012/02/27/3765797/oil-the-never-ending-story.html#storylink=cpy

[q_an_a]

To me, Ed Wallace has the best take on oil speculation, with some great facts. To bad some of our sitting congress people don't read him.

[RetiredArmy]

Your statement implies that members of congress can in fact READ. They don’t seem to be able to READ all those bills that get passed late in the dead of night.

[BfloGuy]

He's correct, in my opinion, that speculation is behind the oil price increase. He doesn't mention, however, why.

At the moment, there are trillions of recently-minted Dollars and Euros sloshing around the world's markets looking for a return. That money is the result of several years' of quantitative easing and Europeans' desperately trying to stave off Greece's default.

They are driving up stock markets against all economic indicators, they are filling up hedge funds, and they are betting on commodities futures without any intention of ever owning the resources behind the contracts.

Governments will soon start to pass new laws trying to restrict speculation. What they should be doing is reining in the central banks that are inflating us to death. You can well imagine which of those courses of action will be followed.

[Java4Jay]

Until we get an efficient ‘National Energy Policy’ that protects our own interest, petrol’s heavy boot will always hold hostage and crush any economic gains.

[Recon Dad]

What people in high places never can seem to understand is oil is the most important product for the last 100 years and for the foreseeable future. There is no “without it”.

[lacrew]

“a reasonably strong economic recovery”

Get ready for the meme...the economy was recovering, after all the Tsunami and earthquakes, only to get ‘de-railed’ by mean nasty oil people.

[FrankR]

[fredhead]

The administration is working up a plan that will make gas prices drop precipitously in September/October. That will be their “October surprise.”

[reaganator]

The United States could be, should be and some day will be the leading oil producing nation in the world.

Of course specualtors are buying up oil contracts they know the price is going to go even higher because the oil industry and their products are under attack from the Leftist anti-capitalist.

But it is senseless to lay the blame at the feet of the speculators.

[q_an_a]

I lay the problem at the feet of the same regulators that let Madoff have so much freedom to thumb his nose at the system. Those SEC guys that sent 4-6 horus each day watching porn instead of enforcing the rules. There are rules about trading - it is for SW Airlines, Greyhound and farmers - the folks that take delivery not bankers or traders of currency.