lowecur
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- Sep 14, 2003
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Interesting article in Business Week. Here are my capsulated thoughts.
As the price of Jetfuel and other distillates (heating and diesel fuel) continue to grow faster than gasoline, you have to ask why? The author believes speculation is behind most of the price increase in oil, but says we are exporting 38% more distillites this year than we imported. That means our distillite refineries are sending the finished product overseas where prices are higher, thus creating an unnecessary shortage and skewing the already high price here in the good ol USA.
But of course that is just part of problem. The author says that the price of oil is being manipulated by a large contingent of thieves (backed by the US Gov't) that have every intention of letting the good people of this country pay the freight.
"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
Dick Cheney and his 40 thieves have every intention of putting as much money in the pockets of the oil industry and rich insiders before they are herded out of office at the end of 2008, as an administration that put this country in a hole it may never dig out of.
http://www.businessweek.com/lifestyle/content/apr2008/bw2008041_945564.htm
http://www.businessweek.com/lifesty...2_520796.htm?campaign_id=rss_topStories_msnbc
As the price of Jetfuel and other distillates (heating and diesel fuel) continue to grow faster than gasoline, you have to ask why? The author believes speculation is behind most of the price increase in oil, but says we are exporting 38% more distillites this year than we imported. That means our distillite refineries are sending the finished product overseas where prices are higher, thus creating an unnecessary shortage and skewing the already high price here in the good ol USA.
But of course that is just part of problem. The author says that the price of oil is being manipulated by a large contingent of thieves (backed by the US Gov't) that have every intention of letting the good people of this country pay the freight.
- In 2000 approximately $9 billion was invested in oil futures, while today that number has gone up to $250 billion (gee, I wonder if any OPEC countries have money in this?). Now, if any publicly traded company had an additional $241 billion put into its stock in the same period, its stock would rise out of sight too—even if the company was not worth anywhere near that amount of market capitalization.
- Goldman Sachs forecast on Mar. 7 that turbulence in the oil market could cause oil to spike as high as $200 a barrel. This flies in the face of all known information—but then again, Goldman Sachs is the world's biggest trader of energy derivatives, and its Goldman Sachs Commodities Index is a widely watched barometer of energy and commodities prices.
- 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.
- Production is expected to increase by 3.3% in the second quarter, and by as much as 4.1% by the third quarter. The net result is that the U.S. daily buffer for oil production against demand, which was a paltry 1.5 million barrels as recently as 2005, is now up to 3 million barrels in excess capacity today.
"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
Dick Cheney and his 40 thieves have every intention of putting as much money in the pockets of the oil industry and rich insiders before they are herded out of office at the end of 2008, as an administration that put this country in a hole it may never dig out of.
http://www.businessweek.com/lifestyle/content/apr2008/bw2008041_945564.htm
http://www.businessweek.com/lifesty...2_520796.htm?campaign_id=rss_topStories_msnbc
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