Letters to the Editor

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OIL PRICES: Reporting has been poor

Letter by Andrew Carey, Ashford on March 18, 2011 at 12:44 pm | 4 Comments »
March 18, 2011 12:44 pm

Re: “Events in Mideast, Japan lead oil prices to soar again” (TNT, 3-18).

Reporting on oil and commodities over the past year is incoherent, chicken-little emotional, and covering up reality.

Oil and commodity prices are not the results of events in the future (China will use more oil in 10 years, Japan will recover) and not even the results of events in the present. They are first and foremost the results of massive capital injected into speculation on the oil and commodities markets (including the massive oil company profits), nothing more.

Secondarily, they are the result of market manipulation by monopolies like refineries and local price collusion. Listen to the Saudi oil minister. Listen to the reports on supply, stocks and demand. Listen to Prof. Paul Woolley at the London School of Economics, who lays it out clearly: This speculation is bleeding the world economy dry just as the derivatives and hedge fund markets have decimated pension funds and Sovereign Wealth funds – sequestering 10 percent of the global GDP while producing nothing at all but poverty.

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