Friday, August 03, 2007

Who is to Blame for the High Price of Oil?

Is it the greedy oil companies as the Donks would have you believe? No. Is it the unrest in the Middle East? No. Are we running out of oil? No. Then why is the price of oil setting records every day? Because of greedy Wall Street speculators.
August 2, 2007 -- Wall Street's smart money is running after oil for its new riches, driving up prices to new records that could push crude past a stunning $100 a barrel in coming months.

Energy analysts say many investors - burned by the junk mortgage meltdown - are suddenly bullish about crude oil. Yet they say there are no fundamental reasons for driving up prices, which hit a new intraday high here yesterday of $78.77 a barrel.

"There's no new bullish news driving this," said energy analyst Peter Beutel of Cameron Hanover.

Beutel expects crude could inch upward this season to a new threshold of $81 a barrel. "Does it make sense? No.

"If we see $81, we'll see a lot more speculators coming in, and price [rises] will continue until they hit $95" or higher - "purely on momentum."

The price of oil has never been the oil companies fault, as the Donks keep droning on about. The price of oil should be based on supply and demand.

In the 70s the price of oil went up because OPEC decided to cut production, thus the price increase. But it appears that the current price increase is due to speculators raising the price of oil futures just to make a buck, and to hell with anyone else. Now don't get me wrong, I am a free market capitalist, but there appears to be the smell of collusion in the air of Wall Street, and it needs to be investigated.

Mr Minority