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 with 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.

Leave a comment Comments → 4
  1. BlaineCGarver says:

    The Market is the ultimate club. Run the numbers up and down as fast as you can, and make money on every transaction. It’s energy and food that will kill the world, not atomic fallout, or Democrats (tho I’m not sure about that last one)

  2. ItalianSpring says:

    Drill here. Drill now. Drill baby drill. Refine baby refine. End of problem.

  3. We are assured that LIbyan oil does not hold major sway over our supply at the same time the crisis in Libya is cited as the reason for spikes in (non-Libyan based) gas prices.

    IS – the reason why production of American oil is not at maximum levels is the oil companies’ protection of profit margins – not regulations.

  4. Drill all you want, but the truth is that the US just does not have the oil reserves to meet our demands.

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