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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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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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