Wall Street is driving up oil prices (Evil Wall Street and Oil Companies at it again. /sarc)

MSNBC ^ | 3/30/2010 | John W. Schoen

[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.

[1rudeboy]

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

[Huskrrrr]

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.

[dforest]

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

[AzaleaCity5691]

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.

[WellyP]

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

[ecomcon]

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?

[tobyhill]

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?

[TexasCajun]

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.

[MEGoody]

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.

[misterrob]

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

[AzaleaCity5691]

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

[rbg81]

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.

[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. The EPA and Interior Departments get to have their say first, then comes the lawsuits.

[pissant]

I thought dumbnuts wanted $5 gallon gas.

[1rudeboy]

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

[griswold3]

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.

[mnehring]

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.

[Huskrrrr]

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

[mountainlion]

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.