SRT wrote:

A thought occurred to me early this morning about the run up in oil prices. Maybe the jihadists have figured out another way to destroy the devil United States, ya think....

sirdrakejr wrote:

I still have not found anyone who can explain to me how the future oil price for July is applied to gasoline already in the ground at the stations and yet they RAISE THE PRICE based on what they are going to get two months from now.
Frank

Quote:

There is no prohibition on developing shale oil". Just what exactly do you consider prohibition:

1. a House of Representatives panel imposed the moratorium on new oil shale rules late last year; the new rules that were proposed, were to allow it.

2. A Senate committee, two weeks ago voted against extracting oil from shale in Colorado.

That may not be what you call prohibition, but it certainly sounds like a form of it to me.

onrecess wrote:

Here's why:
"In June 2006, oil traded in futures markets at some $60 a barrel and the Senate investigation estimated that some $25 of that was due to pure financial speculation. One analyst estimated in August 2005 that US oil inventory levels suggested WTI crude prices should be around $25 a barrel, and not $60.

That would mean today that at least $50 to $60 or more of today’s $115 a barrel price is due to pure hedge fund and financial institution speculation. However, given the unchanged equilibrium in global oil supply and demand over recent months amid the explosive rise in oil futures prices traded on Nymex and ICE exchanges in New York and London it is more likely that as much as 60% of the today oil price is pure speculation. "
Read financial sense: morettp://www.financialsense.com/editorials/engdahl/2008/0502.html

Screwed by deregulation and lack of regulation and nothing else. Don't be idiotic. We have been using the same amount of oil and blaming a giant and SUDDEN increase on traditional levels of demand is nothing BUT idiotic.
You're welcome.