A Blog For All - Comments - Keep it civil
matt seems to be in the obama tank. and i have not been going to his site very much anymore. if i want liberal democrat news i can go to the MSM.
While these photos are misleading, and not good journalism unless the author cited his usage as an exaggeration attempt, we should take a minute to see what the reader impact is.
Do you feel threatened by these gas prices? These levels most likely will come to fruition for 87 gas soon... unfortunately.
My question really is why?
Is it NYMEX Speculators
Geopolitical unrest in MidEast/Nigeria
Peak Oil rumors
US restrictions on drilling locally
Market Manipulation/OPEC gauging/Exxon
Hedgefunds and Goldman Sachs
My opinion is it's the WEAK US dollar maybe combined with very little of all the above factors. Oil is priced in dollars and the Fed has destroyed our currency, trying to cure Subprime mortgage fallout and bank irresponsibility. Oil Speculators are not running up the prices as the media and congress reports, because they are making bets where they think oil will go in the future. These bets can be wrong. None of these guys are taking possession. Buying oil futures is a lot different from buying stock, or the direct underlying asset oil which would have demand side physical impact. USO, DBO, UGA,DBC type funds are criticized by Congress as scapegoats for oil prices. In actuality, they hate these stock like funds, because intelligent Americans can profit directly from rising commodity prices, with their Etrade and Fidelity accounts whereas in the past only the big boys could capitalize DIRECTLY on market imbalances. Rumors that the Saudis are limiting oil production is suggesting that maybe they are seeing the supply side limitations in drilling. Nigerian battlegrounds can cause market spikes, but we're looking at $140+ oil as of Friday, hardly attributable completely to Nigeria. Outside of manipulation including hoarding and unloading, Goldman and Hedgefund activity, and within regulation supply and demand will govern commodity prices. To think this manipulation doesn't happen in all other investment vehicles is ignorant, and it's factored into prices eveywhere to some extent.
Don't run out and buy a hybrid though. The minerals/chemicals in the batteries are a real environmental hazzard uses more production energy in building than you will in the life of driving a non-hybrid.
My advice for the American wanting to save money on gas and be good to the environment- buy a used car where the material outlay has already been commited and you can get very good mileage ...a Geo Metro.
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