As we watch oil prices reach heights that threaten our economy and are causing millions of Americans to curb their driving, which impacts almost every segment of our economy, we have to ask ourselves why these prices are rising- and only part of the answer is supply and demand! Several nations have blamed much of the spike in prices on oil speculators, and are taking measures to stop the money-changers from profiting on the over-inflated price of crude oil. Now that the sub-prime crisis has been exposed and wrought hell on the economy, the rich are seeking other means of making a fast buck – and because of geopolitical tensions, oil is the one commodity that is still profitable for the few who can afford to enter a market that is rising almost every day – and gleefully profit on every threat or political statement made in regard Iran.
Politicians need to be held accountable for their actions, especially when politically motivated statements are the cause for the entire global community to suffer from higher prices at the pump!
“On Friday Shaul Mofaz said military strikes to stop Iran developing nuclear weapons looked “unavoidable”. LINK
Immediately after that statement, crude took one of its highest one-day jumps in history, and we can thank politics for causing us even more pain at the pump, which I’m beginning to believe is being brought about on purpose!
Mofaz criticized over Iran threat
A key defense official has accused one of Israel’s deputy prime ministers of threatening to attack Iran in order to boost his own political standing.
Deputy Defence Minister Matan Vilnai said Mr Mofaz was using the issue to position himself to challenge Prime Minister Ehud Olmert’s leadership.
Analysts blamed Mr Mofaz’s comments in part for a record one-day jump of $11 in oil prices, bringing the cost of crude to a fresh all-time high at $139 a barrel.
Yediot Ahronot economic analyst Sever Plotzker asked: “Blathering away about how ‘we’ll attack and destroy you’ does not deter the decision-makers in Tehran, but it does drive the oil markets crazy… And who profits from that? Tehran.” MUCH MORE
If anyone takes the time to look back at surges in crude oil prices, every time Bush, Cheney, or someone in Israel threatens Iran, or implies that they (Iran) might be attacked, oil prices take an immediate jump – and it’s far more than Iran whom benefit from these spikes in oil! Major US financial institutions are warning of higher oil prices, and by making these predictions, are themselves helping to inflate the price of oil!
Oil nears $123 on $200 oil prediction, supply concerns
Tuesday May 6, 5:32 pm ET
By John Wilen, AP Business Writer
NEW YORK (AP) — Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.
A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday’s buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say. MORE
When Wall Street warns the public that oil is bound to increase in price, they are conditioning the consumer to expect higher gas prices even when supply and demand do not support these absurd rises in crude oil:
The Reason for High Oil Prices
No Lines at the Pump
Waldron’s assertion rang true. In the U.S. alone, stockpiles of oil climbed by 11.9 million barrels in the month preceding the Energy Information Agency’s (EIA) May 7 inventory report; they were up by nearly 33 million barrels since Jan. 1. At the same time, MasterCard’s (MA) May 7 gasoline report showed that gas demand has fallen by 5.8%, while the government suggested that gasoline consumption might have fallen by slightly over 6%.
We do know that refineries in the U.S. again cut back their utilization to 85%. That’s down from 89% a year ago, in a season when production is normally 95%, only because they’re trying to draw down gasoline inventories to bid gasoline prices up. Yet despite the reduced refinery runs, the EIA said, the U.S. managed to put another 800,000 barrels of gasoline in stock. The American Petroleum Institute put the gas gain at 1.4 million barrels. The point is that neither organization is in disagreement that gasoline was added into our active stocks; it’s just a question of exactly how much.
Only the day before, the EIA had released its monthly Short Term Energy Outlook report, concluding that U.S. oil demand is expected to decline by 190,000 b/d in 2008. Chinese consumption is expected to rise this year by only 400,000 b/d—hardly the “surging oil demand” usually blamed on China in the media. Last year China imported 3.2 million barrels per day, and its estimated usage was around 7 million b/d total. The U.S., by contrast, consumes around 20.7 million b/d. MUCH MORE
Businessweek has done a lot to expose what is an obvious rip-off of the American public and the global community, and it’s the oil companies and speculators on Wall Street and the international markets that are causing the rise in gas prices, not supply and demand!
There Is No Gas Shortage
But Washington, Wall Street, and ethanol and oil and gas companies want you to think there is, says automotive expert Ed Wallace
by Ed Wallace
“They see speculation in the market, I see decline in global inventories. I don’t think this is a big surprise, that we’ve had a jump in price when there has been a decrease in crude inventories.”— Energy Secretary Sam Bodman, Bloomberg News, Mar. 5, 2008
“It should be obvious to you all that the [gasoline] demand is outstripping supply, which causes prices to go up.” — President George W. Bush, Associated Press, Mar. 5, 2008
One wonders if verifiable facts ever get in the way of this administration’s statements on issues that are critical to the average American’s wellbeing. After all, last time I checked, when politicians are elected to public office, or appointed, as is Energy Secretary Samuel W. Bodman, they must take an oath to the American people before assuming their new positions. How can they forget a sacred oath so quickly? Were they daydreaming when they took it, so it never meant anything to begin with? Maybe it’s just another promise you have to make to get into office: When you’re securely incumbent you can ignore even solemn oaths you took.
Obviously, the two quotes that led this article came from discussions concerning the current high price for oil on the futures market. Bodman appears to be protecting the speculators in oil, as opposed to looking after the interests of all Americans. President Bush, apparently, has never talked to the Energy Dept.’s Energy Information Agency to see whether gasoline demand is actually up. More troubling, the writer of that particular Associated Press article obviously didn’t look up the EIA’s numbers to verify the President’s assertions. They weren’t accurate.
1. There Is No Shortage
Gasoline reserves on hand are at the highest levels since the early 1990s, which is remarkable considering the nation’s refineries have been cutting back on the production of gasoline because their margins have declined. In fact, average gasoline reserves on hand have risen since this past October, while oil reserves in this country have gone up virtually every week this year—and only fog in the Houston Ship Channel that kept oil tankers from unloading their crude one week kept it from being every week. MUCH MORE
When you take the time to read-up on the subject, it’s obvious that the Bush administration and the fat-cats on Wall Street are busy gouging the the entire global community, and the havoc it’s wrecking on our economy should be a crime! Less driving means less business across the board; our airlines are teetering on bankruptcy, while some have already failed, and businesses throughout America are suffering so the rich can become richer while wringing every penny they can out of the consumer. Our government is allowing the public to be gouged when they know the oil crisis has been manufactured and exacerbated by greed and profit-taking, so where is the Congress on this matter??? Where is the regulation? It’s gone and will be until George W. Bush leaves office, and if it isn’t soon, the public will be sucked-dry and countless American business will fail, families will go hungry, all because we have a Presidency that favors the wealthy and corporate America rather than the people he was supposed to serve!
For those who are unaware of the definition of fascism, please be advised that you’re living in it! Fascism is when the state favors the corporations and the wealthy rather then the people – and when the government strips-out almost all of the regulations that used to provide controls of these markets, it allows corporate America and speculators to rape the American public. Welcome to Bush’s America, where the company comes first and the people don’t matter.
Fascism also operated from a Social Darwinist view of human relations. Their aim was to promote “superior” individuals and weed out the weak. In terms of economic practice, this meant promoting the interests of successful businessmen while destroying trade unions and other organizations of the working class. Lawrence Britt suggests that protection of corporate power is an essential part of fascism. Historian Gaetano Salvemini argued in 1936 that fascism makes taxpayers responsible to private enterprise, because “the State pays for the blunders of private enterprise… Profit is private and individual. Loss is public and social.” LINK