posted April 01, 2010 08:54 AM
MSNBC seems blissfully ignorant that crude oil is part of the commodity futures markets and is not any part of the Wall Street Equity {stock} Market.Oil is traded in the form of futures contracts on the NYMEX...New York Mercantile Exchange and...the CBOT, Chicago Board of Trade. Oil is not traded on the New York Stock Exchange, {Wall Street}...though the stock of individual oil companies is.
"But analysts contend that the rise is prices is not a supply problem — it's a Wall Street problem."
Nope, it's a producer nation, oil trader and oil broker problem...as I explained in another thread.
"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 commodity investors — not market supply and demand."
Yep, oil futures traders and oil brokers who bid the price of contracts up for profit...along with producer nations who manipulate the price by restricting supply.
Bush said drill, drill, drill and these brokers and traders bailed out of their futures contracts...sold them as fast as possible...to avoid the rapid fall of crude oil prices they knew were coming. That kind of panic selling produces the result I predicted that as soon as it appeared the US was serious about energy independence by drilling for and producing our own...oil prices would plummet.
And, that's exactly what did happen.
Thanks acoustic for helping me show it's the US government..Congress and White House..who are the greedy bast@rds in the oil business and not the oil companies.
From every gallon of gas sold in the US, oil companies make about 8 cents. The federal government makes more than twice as much in taxes on the sale....more than 18 cents per gallon. They are the greedy bast@rds. 
To understand why prices fell out of the sky when Bush said drill, drill, drill; there's some things you have to know.
The US is the biggest market for oil in the world. Our economy is tied to energy without which almost nothing gets made, transported or sold.
It's no secret to oil producing nations, oil brokers and oil traders that the United States has energy reserves which rival the rest of the world combined in the form of crude oil, coal and oil shale deposits.
Oil producing nations generally have one product to sell to the rest of the world...OIL.
Imagine the panic they feel when their biggest customer for their only product starts talking about drilling and producing our own oil...and knowing we have the ability to do just that.
Imagine the panic oil brokers and oil traders felt when they're sitting on oil futures contracts they bought at say...$130 per barrel, the price was $147 per barrel at the time...and Bush is saying to America..Drill, Drill, Drill. It was cardiac arrest time, panic all around, scrambling to get out of those high priced futures contracts and the result was predictable...prices falling like a rock in free fall...as I predicted before prices started to fall.
So, how do oil producing nations prevent the United States from drilling and producing our own oil? They've done this before and it worked.
They create an over supply of oil by producing more for sale in world markets...and that drives prices down, puts America to sleep again and talk of American energy independence dries up.
It was only a few years ago that oil prices were down to $12 per barrel...and Middle East oil producers were still making money hand over fist...because their true cost of production is much lower than our own domestic oil producers.
In the early 2000's, Middle East oil producers were saying they wanted to stabilize oil prices at $25 per barrel....a price at which they are able to make tons of money. Today, oil is selling at over $80 per barrel.
Oil is a commodity and it's not a rare commodity. There's more proven oil reserves in the world today than at any time in history. We are not running out of oil in the world.
This sounds counter-intuitive but through technology in exploration we are able to find oil that couldn't be found in past decades. Further, through improved drilling technology, we are able to drill in deep waters where the technology of past decades didn't exist.
Nothing I've said here is super secret information; it's well known information available to anyone who wants to know.
There is however, willful ignorance on the part of boneheads in the press, in Congress and boneheads in the White House.
The price of oil and gasoline will fall rapidly just as soon as Congress and the Executive branch get their acts together and "pass legislation" to make the United States energy independent by drilling and producing oil and natural gas here..where it's already known they both exist in abundance.
It's the nuts in Congress, the bone head Marxists in the White House and the eco loons who are responsible for high oil and gas prices in the United States.
It's time to throw the bloviating chair warming morons out of office so they can seek jobs they can actually do...if there are any such jobs for morons.
Lindaland
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posted March 31, 2010 12:59 PM
posted March 31, 2010 03:24 PM
posted March 31, 2010 04:01 PM
posted March 31, 2010 07:34 PM
