Sunday, April 17, 2011

Playing With Oil Prices, And Getting Away With It

While I do not drive or own a car, I am affected by the uncalled for rising gasoline prices as it affects other aspects of my life, including the rise in the price of food and other necessities. However, most of us are well aware by now how these rising gasoline prices are rigged. There's an interesting piece by Lee Fang exposing how gamers like Koch Industries are utilizing tactics similar to those that were done by Enron to spike the price of oil.

In recent weeks, gas prices around the country have surged to levels unseen since the 2008 oil spike. However, market fundamentals are not driving the nearly $4.00/gallon gas prices. In fact, under the Obama administration, oil production is at record highs and there is adequate global supply of crude. As Commodity Futures Trading Commission (CFTC) commissioner Bart Chilton has explained, rampant oil speculation, which is at its highest level on record right now, is to blame for current prices.

As Yasha Levine says on her blog concerning this:

To put it another way: Forget what you learned about supply and demand. Everyone agrees the oil market is more rigged than a truckstop slot machine.

I suggest a full read of both sites.

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