The oil speculators are driving up the cost of oil myth

That’s right, it’s a total myth. For those of you who are unfamiliar with how the commodities market works, here’s a primer. If you are a speculator who thinks the price of oil is going up, you have to find a speculator who thinks the price of oil is going down.

Got that? You have to buy oil futures from someone else – another speculator – who thinks the price of oil is going to drop.

What is being experienced here is the laws of supply and demand when it comes to commodities. If the price of oil is going up, there are more people who want to buy it from the people who have it. Those selling, are actually betting the price is going to go down. There is no conspiracy out there to artificially increase the price of oil.

When the price of oil dropped from $145 per barrel in July of 2008, to $50 per barrel in Nov. 2008 (a short four months) did you ever hear the media claiming speculators were driving down the cost of oil?

Obama “can’t do much” to lower gas prices … demands they go higher

When the cost of doing business increases, the business can increase prices, take a lower profit margin, cut dividends, cut labor and R&D, or most likely a combination of those options. Basic business right?

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Another Obama oil price task force!

He’s serious, so much so, he’s created a task force to “look into speculation to make sure folks are not taking advantage of the situation on the global oil markets”. We’ve heard about oil task forces before … never seem to hear what they have found.

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Oil & gas companies prosecuted for bird deaths … Wind turbine companies not so much

The US Attorney for the state of North Dakota took seven oil and gas companies to court charging them with killing 28 migratory birds.

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A “Reasonable Profits Board” would not stop with the oil and gas industry

Really, where do these Democrats get off targeting one specific industry as evil and unreasonable since they – by some arbitrary decree – think the industry makes too much money?

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Obama lie: Oil company business expenses are “tax giveaways”

This is out of control. On May 3 I wrote about how the left, President Obama and Democrats can’t admit that what they refer to as major “subsidies” are simply ordinary business expenses. Now Obama has used the word “giveaways” in a direct email campaign looking for donations.

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Oil company executives stand up to Congress

I don’t blame them if some of the answers were confrontational. This attack on big oil profits with Congress-critters spouting off crap like “don’t you think it’s better to give kids education grants instead of giving you profit” is unmistakably stupid. I’m sick of these attacks.

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