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Wall Street is driving up oil prices (Evil Wall Street and Oil Companies at it again. /sarc)
MSNBC ^ | 3/30/2010 | John W. Schoen

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 nation’s 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 ...


TOPICS: Business/Economy; Extended News; News/Current Events
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1 posted on 03/31/2010 6:17:26 AM PDT by tobyhill
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To: tobyhill

Why the sarcasm? We have a considerably-sized contingent of FReepers who believe it.


2 posted on 03/31/2010 6:18:20 AM PDT by 1rudeboy
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To: tobyhill

The proposal aims to reduce the nation’s 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.


3 posted on 03/31/2010 6:20:56 AM PDT by Huskrrrr
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To: tobyhill

Government run oil companies. Demonize, ridicule, takeover to save the poor downtrodden.


4 posted on 03/31/2010 6:22:15 AM PDT by dforest
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To: 1rudeboy

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.


5 posted on 03/31/2010 6:22:33 AM PDT by AzaleaCity5691
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To: Huskrrrr

You trust that Bastard? I don’t!! Watch the other hand!


6 posted on 03/31/2010 6:22:56 AM PDT by WellyP
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To: tobyhill
OPEC countries also are convening in Mexico this week to map out a strategy for keeping prices from rising higher.

Like I'm supposed to believe thst? WTH is the matter with people?

7 posted on 03/31/2010 6:23:39 AM PDT by ecomcon
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To: 1rudeboy
I'm not one of them. It was supply and demand under Bush and it is the same with Obama. My only question is, will the MSM claim Obama is in bed with the oil companies the same way they claimed Bush was?
8 posted on 03/31/2010 6:23:42 AM PDT by tobyhill
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To: tobyhill

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.


9 posted on 03/31/2010 6:25:02 AM PDT by TexasCajun
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To: tobyhill
I get it. Obama is President - he can't possibly be causing oil prices to rise. But of course when Bush was President, it was all his fault.

Makes perfect sense.

10 posted on 03/31/2010 6:25:11 AM PDT by MEGoody (Ye shall know the truth, and the truth shall make you free.)
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To: tobyhill

Dollar strength plays a large part in this as well....


11 posted on 03/31/2010 6:26:02 AM PDT by misterrob (Have you tea bagged a liberal today?)
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To: Huskrrrr

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


12 posted on 03/31/2010 6:26:08 AM PDT by AzaleaCity5691
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To: indylindy

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.


13 posted on 03/31/2010 6:26:32 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: tobyhill

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.


14 posted on 03/31/2010 6:26:35 AM PDT by Thunder90 (Fighting for truth and the American way... http://citizensfortruthandtheamericanway.blogspot.com/)
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To: tobyhill

I thought dumbnuts wanted $5 gallon gas.


15 posted on 03/31/2010 6:26:52 AM PDT by pissant (THE Conservative party: www.falconparty.com)
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To: AzaleaCity5691

Right. Speculation drove the price up. Have you been complaining that speculation was driving the price down, until recently?


16 posted on 03/31/2010 6:27:07 AM PDT by 1rudeboy
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To: Huskrrrr
snip] The first lease sale off the coast of Virginia could occur as early as next year in a triangular tract 50 miles off the coast that had already been approved for development but was held up by a court challenge and additional Interior Department review, officials said. But as a result of the Obama decision, the Interior Department will spend several years conducting geologic and environmental studies along the rest of the southern and central Atlantic Seaboard. If a tract is deemed suitable for development, it is listed for sale in a competitive bidding system. The next lease sales — if any are authorized by the Interior Department — would not be held before 2012. March 31 (Bloomberg) -- Oil Companies may struggle to unload their Excess Refining Capacity in Europe this year as profits from turning crude into fuel stay depressed. Total SA, Royal Dutch Shell Plc and Chevron Corp. are seeking to sell refineries in Europe after the Recession reduced demand. Eni SpA Chief Executive Officer Paolo Scaroni said this month it’s “impossible” to find Buyers after Refining Profit Margins slumped to a 15-year low in December. More ▼ The desire to cut capacity highlights Oil Companies’ shift toward China and India for growth as Demand For Fuel slips in Europe and North America. BP Plc Chief Executive Officer Tony Hayward, whose company sold at least 10 refineries in the past decade, has said that Mature Markets will Never Again consume as much gasoline as they did in 2007. My point? When major oil refining companies predict that US and European gasoline consumption will 'Never Again' return to 2007 levels, that says that our economy will be on the skids for a loooonnng time.
17 posted on 03/31/2010 6:27:52 AM PDT by griswold3
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To: tobyhill

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.


18 posted on 03/31/2010 6:28:31 AM PDT by mnehring
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To: AzaleaCity5691

I honestly believe Obama wants to ruin this economy to facilitate complete government takeover.


19 posted on 03/31/2010 6:29:00 AM PDT by Huskrrrr
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To: tobyhill
When you hear the left speak watch their right hand to keep it out of your pocket. Klinton had oil at $20 and things worked good. Now they have shut down drilling with all sorts of liberal excuse. Liberals decided to ship off $250B to opec for payoff for something when prices were over $100/barrel. The liberals are so busy trying to take over the government they will have destroyed America while piddled and will have nothing to be a dictator over.
20 posted on 03/31/2010 6:29:06 AM PDT by mountainlion (concerned conservative.)
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To: 1rudeboy

+1
I love how ‘speculation’ has become a dirty word. Everything in commerce is speculation.. Eliminate speculation, you eliminate capitalism.


21 posted on 03/31/2010 6:29:35 AM PDT by mnehring
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To: WellyP

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!


22 posted on 03/31/2010 6:29:57 AM PDT by WellyP
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To: WellyP

“You trust that Bastard? I don’t!! Watch the other hand!”

The community disorganizer in action:

http://www.freerepublic.com/focus/f-news/2469614/posts


23 posted on 03/31/2010 6:30:08 AM PDT by Need4Truth (We can't afford the empire or the entitlements.)
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To: tobyhill

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.


24 posted on 03/31/2010 6:30:15 AM PDT by Buckeye McFrog
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To: tobyhill
Oil prices have steadily rose risen over the last year

Another illiterate journalism school grad.

25 posted on 03/31/2010 6:31:37 AM PDT by tx_eggman (Liberalism is only possible in that moment when a man chooses Barabas over Christ.)
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To: 1rudeboy

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.


26 posted on 03/31/2010 6:32:03 AM PDT by AzaleaCity5691
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To: Buckeye McFrog
Waxman treatment.

Torture?

27 posted on 03/31/2010 6:32:04 AM PDT by Osage Orange (A fear of weapons is a sign of retarded sexual and emotional maturity. - Sigmund Freud)
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To: misterrob

It too is a factor but according to PMSNBC it’s all just the evil Wall Street.


28 posted on 03/31/2010 6:35:11 AM PDT by tobyhill
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To: rbg81

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.


29 posted on 03/31/2010 6:35:28 AM PDT by dforest
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To: tobyhill

I remember when the Soviets used to curse Wall Street. Now it’s MSNBC.


30 posted on 03/31/2010 6:35:59 AM PDT by popdonnelly (I'm so old, I remember when free enterprise was praised, and communism was shunned.)
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To: pissant

He does but this article is in prep for Wall Street to take the blame when it does.


31 posted on 03/31/2010 6:37:53 AM PDT by tobyhill
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To: tobyhill

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.


32 posted on 03/31/2010 6:40:54 AM PDT by MsLady (If you died tonight, where would you go? Salvation, don't leave earth without it!)
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To: 1rudeboy

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.


33 posted on 03/31/2010 6:41:12 AM PDT by MiltonFriedmanFan
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To: tobyhill

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.


34 posted on 03/31/2010 6:42:28 AM PDT by LeCash
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To: Thunder90
The whole oil drilling thing is tied to Cap and Trade, and “opening” the areas does not guarantee that the drilling will take place.

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.

35 posted on 03/31/2010 6:43:25 AM PDT by qwertypie
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To: MsLady
No! Those are the real patriots that don't have a thing to do with supply and demand. /sarc
36 posted on 03/31/2010 6:43:59 AM PDT by tobyhill
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To: 1rudeboy
If you want to find out how the Wal street and big bank folks have played/gamed the system read Ed.Wallace in BusinessWeek. They are using 0 % intrest money to play the market. They can drive the futures of oil, which is no gamble to new highs, sell and with no risk they pay back their laons to the Fed. According to Ed. the oil futures market has gone from a billion dollars a day trading to 500 billion in less than 10 years.

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

37 posted on 03/31/2010 6:45:53 AM PDT by q_an_a
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To: MiltonFriedmanFan

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.


38 posted on 03/31/2010 6:47:14 AM PDT by qwertypie
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To: tobyhill
Oil prices have steadily rose over the last year

Who edits this stuff?

39 posted on 03/31/2010 6:49:21 AM PDT by HIDEK6
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To: tobyhill
The proposal aims to reduce the nation’s reliance on foreign oil, which theoretically could hold down prices for U.S. consumers.

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!)

40 posted on 03/31/2010 6:49:59 AM PDT by concerned about politics ("Get thee behind me, Liberal")
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To: indylindy

“takeover to save the poor downtrodden”

You got it!


41 posted on 03/31/2010 6:50:01 AM PDT by dynachrome (Barack Hussein Obama yunikku khinaaziir!)
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To: AzaleaCity5691
[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.]

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.

42 posted on 03/31/2010 6:54:00 AM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: TexasCajun

And now the Democrats want to stop frac-ing, which is essential in the Bakken Shale region of N. Dakota.


43 posted on 03/31/2010 6:56:16 AM PDT by Melchior
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To: dynachrome

By January 2011 the government will run almost everything.


44 posted on 03/31/2010 6:56:59 AM PDT by dforest
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To: tobyhill

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.


45 posted on 03/31/2010 6:58:29 AM PDT by joelt
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To: indylindy

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?


46 posted on 03/31/2010 6:59:39 AM PDT by dynachrome (Barack Hussein Obama yunikku khinaaziir!)
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Comment #47 Removed by Moderator

To: q_an_a
OPEC is gaming the system, certainly. So is Washington, DC. If Goldman tries, and fails, it loses money. That's the difference.

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.

48 posted on 03/31/2010 7:04:25 AM PDT by 1rudeboy
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To: joelt

Good going


49 posted on 03/31/2010 7:04:48 AM PDT by dennisw (It all comes 'round again --Fairport)
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To: dynachrome

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.


50 posted on 03/31/2010 7:06:29 AM PDT by dforest
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