Originally Posted by Area 51
Everyone is bitching about the price of fuel yet almost no one seems to understand the market and the reasons for high prices.
Here'a a little gem from Drudge to show you the way:
Koch Hoards Oil, Profits on Speculation | Drudge Retort
Notice the part:
"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."
Ladies and gentlemen, we are getting hosed by, once again by, unregulated capitalist greed. And who is in on it? Why it's our New York friends who dabble in Wisconsin politics in order to get sweet deals on energy - the Koch brothers.
"Big banks and companies like Koch Industries employ a "contango" strategy by buying up oil and storing it to lock in the oil for sale later at a set price. In December 2008, Koch leased four supertankers "to hold oil in the U.S. Gulf Coast to take advantage of rising prices in the months ahead," Fortune magazine's Jon Birger reported. This could have raised gas prices by "anywhere from 20 to 40 cents a gallon."
Here's anohter link with more info:
Oil Industry Statistics from Gibson Consulting - prices
The value of the dollar is another big factor but I better leave something for everyone else to work on. Links?
So, speculation on the stock market is good but speculation on the commodity market is bad? Care to explain why one is more evil than the other?
Speculation has become the bad buzz word for investment. Same should go to all the libs who "speculated" in the housing market and other areas that the Government seemed to want people to invest money.
Rearding the price of fuel...
how much is profit to the oil company versus how much of the cost is government imposed tax on a gallon of fuel?
Side note...wonder what happened to all the names of people hiding money in Switzerland?? I wonder how many prominent Democarat Socialists were on that list before the story disappeared?