Skip to comments.Wall Street is driving up oil prices (Evil Wall Street and Oil Companies at it again. /sarc)
Posted on 03/31/2010 6:17:26 AM PDT by tobyhill
Oil prices have steadily rose over the last year, and experts are worrying further increases could snuff out an already-fragile global economic recovery.
President Barack Obama is expected to announce Wednesday his plan to open oil and natural gas drilling off the Atlantic Coast and Gulf of Mexico. The proposal aims to reduce the nations reliance on foreign oil, which theoretically could hold down prices for U.S. consumers.
OPEC countries also are convening in Mexico this week to map out a strategy for keeping prices from rising higher.
But officials may face an even bigger problem: The recent rise in prices seems to be driven by Wall Street investors not market supply and demand.
Though prices crashed from their peak of $140 a barrel before the recession began in December 2007, they have since recovered substantially. Last year, the price of crude fell to $33 a barrel before a relentless recovery to about $80 by year-end.
(Excerpt) Read more at msnbc.msn.com ...
Why the sarcasm? We have a considerably-sized contingent of FReepers who believe it.
The proposal aims to reduce the nations reliance on foreign oil, which theoretically could hold down prices for U.S. consumers.
This proposal aims to buy a few votes. Obummer wants $10 per gallon gasoline. There’s no fool like a MSNBC fool.
Government run oil companies. Demonize, ridicule, takeover to save the poor downtrodden.
Well it’s true.
The stock market does not reflect the economic situation on the ground, and much of what drove the price of oil up in the first place was speculation. The speculation is what killed our economy because it turned fuel from a minor cost into the main cost after home payments that people had to make. That caused the use of credit to go up, it caused people to draw out the equity from their homes and it caused them to spend less overall on the economy overall.
Real estate speculation in a few markets helped sow the seeds for our problems but none of it would have happened without oil market speculation.
You trust that Bastard? I don’t!! Watch the other hand!
Like I'm supposed to believe thst? WTH is the matter with people?
Ok, you can explore and drill but you now have to have zero CO2 discharge from the rig, all rig power must be clean wind or solar generated, fair salaries from executives to roughnecks will be established by the Engery Dept.
Makes perfect sense.
Dollar strength plays a large part in this as well....
Not to give Obama any credit but I seriously doubt that.
$10 a gallon gasoline would be the spark that would set off mass unrest in this country because that would give the average American family a gasoline bill higher than a car payment.
It would ground the country to a halt. $4 a gallon gasoline collapsed our economy. We’ve now “adjusted” to gas between $2.50-3.50. $10 would kill us
Government run oil companies—which will suddenly start running at a loss (no doubt). In the end, we’ll nationalize everything and everything will be in the red. That way, when there is nothing left to devour and the Government finally defaults, all sembalance of order will really collapse. When our form of communism collapses, we will have the bloodbath the Soviet Union avoided.
The whole oil drilling thing is tied to Cap and Trade, and “opening” the areas does not guarantee that the drilling will take place. The EPA and Interior Departments get to have their say first, then comes the lawsuits.
I thought dumbnuts wanted $5 gallon gas.
Right. Speculation drove the price up. Have you been complaining that speculation was driving the price down, until recently?
Darn them, and they always time raises for early Spring and early Summer. Just a conspiracy to hide the increases over times when demand increases. Greedy SOBs forcing us to use more gas. I heard they also had a mind control device at all the gas pumps that caused people to use more.
I honestly believe Obama wants to ruin this economy to facilitate complete government takeover.
I love how ‘speculation’ has become a dirty word. Everything in commerce is speculation.. Eliminate speculation, you eliminate capitalism.
CO2 Ex order is coming late this week! That is what yhe hidden hand was doing! We have to vote BIG in November to get rid of Obama’s power! I hate that BASTARD!
“You trust that Bastard? I dont!! Watch the other hand!”
The community disorganizer in action:
long term....the Democrats definitly want $10 gas.
short term....driving prices down before November no doubt looks like a good electoral strategy to them.
I don’t doubt they can do this by having Obama float phony offshore lease proposals, and dragging commodity traders down to D.C. for the Waxman treatment.
Another illiterate journalism school grad.
What drove it down was that the American economy went into near collapse state and took the rest of the world’s economies with it.
Had their been no speculation this last decade then gas prices would have about now inflated to $2.50 by now, driven in large part by demand in India and China, but that increase would have been generic, would have been overtime and would have been something Americans could have absorbed.
What we got instead was a situation where we saw a 300% increase in the average price of gas over 5 years which was a much higher inflation rate than the actual inflation rate. That was the poison pill that killed the consumption based economy.
It too is a factor but according to PMSNBC it’s all just the evil Wall Street.
No wonder Hugo Chavez is envious of Obozo. It has been easier to takeover the US than Venezuela. I used to believe there would be a tipping point. Not anymore.
It seems we have our eggs all in the basket of the 2010 elections. Since massive fraud will occur and we the opposition will not protest....very sad.
I remember when the Soviets used to curse Wall Street. Now it’s MSNBC.
He does but this article is in prep for Wall Street to take the blame when it does.
Yea, they forget that it’s the evil left enviroes that have blocked at ever turn, any building of new refiners and any drilling for decades. If not for them, we wouldn’t be having this discussion at all.
I am one of those idiots then. While supply and demand ultimately dictates the price, you better believe that big time players like GS jump from market to market and piggyback on major trend moves.
They should really accelerate the utilization of clean energy.
Hope that the Wall Street would not become the hardest obstruction for a new technology revolution.
Yes, absolutely. This is a way to dampen the markets temporarily during an election season without actually drilling. Seem to create a future pool of oil without actually following through.
Obama and the Dems are in desperation mode for '10. The health care bill was a stopgap measure that progressives actually hated, but held their noses for, in order to salvage the reputation of their Dear Leader. This is another indication that they're frightened about November.
It is not supply and demand because oru refineries are running at 79% of capacity and we are importing 1.2 million fewer gallons of oil every day. see the oil inventory report http://tonto.eia.doe.gov/oog/info/twip/twip.asp
Some markets are too big for individuals to corner, and worrying about the effect of somebody like Soros is counterproductive. OPEC itself can’t completely control things, so worrying about a Bond villain-type character is a bit irrational. Soros can profit by making a correct call, but his control of energy is an imagined thing.
Who edits this stuff?
After Cap and Tax, our prices will only be 100 times higher than they are now. Gee, Oboma sure is a swell guy.
(This is only because Iran has Oboma over an oil barrel. This has nothing to do with the American citizens saving money. When was the last time Oboma did anything on behalf of Americans? Gimmie a break!)
“takeover to save the poor downtrodden”
You got it!
I agree. The economy can deal with one or two serious crises at a time but a prolonged spike in oil prices when two other pillars have fallen starts the collapse.
I believe another relevant factor was the installment of a Democrat Congress in January 2007. That sent negative signals around the world and began a shift of foreign capital and market holdings away from the U.S.
And now the Democrats want to stop frac-ing, which is essential in the Bakken Shale region of N. Dakota.
By January 2011 the government will run almost everything.
I am like most who took a big whack to the portfolio from roughly 9/08 to 3/09. But when oil went from $140/barrel to $40 a barrel, I saw an opportunity. From March to October of 2009 I spent 3 hours a day studying,reading,trying to understand the market. I was able to trade my way back to even,(plus a little more). I made money on oil,natgas, gold, and silver. I sold my winning positions againt my losers. So it wasn’t Wall St driving up the price, it was me. I confess. But I met my goal of getting rid of my 500 upsidedown shares of GE(NBC,MSNBC) I’m not a Wall St raider gaming the system, I’m a truck driver.
A thought crossed my mind after the take over of the student loan business. Will gunsmithing be banned from being elgible from the student loan program?
Also, it's odd to see someone claim that they "feel" the market-clearing price should be lower (or higher), yet simultaneously claim that others shouldn't feel differently.
Maybe, or gunowners could be denied medical treatment or have to pay more for treatment. Basically, the more they takover, the more control of our lives they will take.
Anytime there is any announcement coming from Obama and the dems means they have picked their next target for a takeover. They are moving very fast.
There will be no fair elections, count on it.