CRUDE OIL WAS $108 A BARREL THEN!
A GALLON OF GAS AT MOST STATIONS IN THE U.S. WAS AROUND $4.00!
WALL STREET WAS ECSTATIC!
THE OIL COMPANIES HAD POSTED OVER A TRILLION DOLLARS IN PURE PROFIT IN JUST ONE DECADE.
THE AVERAGE AMERICAN WAS SWEATING BULLETS TO PAY FOR FUEL.
BUT WALL STREET WAS HAPPY.
HOW DID THAT HAPPEN, GIVEN THE HIGH PRODUCTION AND LOWER DEMAND, AND, MORE IMPORTANTLY, HOW DID THAT HAPPEN?
TODAY, WALL STREET IS WHINING AND TUMBLING OVER OIL PRICES BEING SO LOW.
IN SPITE OF ALL THEY CAN DO, NEITHER THE U.S. OIL COMPANIES NOR THEIR BOSOM BUDDIES IN CONGRESS CAN RAISE PRICES AND KEEP THEM UP...FOR NOW.
ASIDE FROM THE EXTRAORDINARY FEDERAL SUBSIDIES AND TAX LOOPHOLES OFFERED TO BIG OIL, WHAT ELSE CAN HELP US UNDERSTAND THIS CRAZY LINK BETWEEN LOW OIL PRICES AND A LOW MARKET?
WHAT CAN EXPLAIN THE WALL STREET WHINE WHEN AMERICAN CONSUMERS CATCH A BREAK WITH LOWER OIL/GAS PRICES?
MAYBE AN UNLIKELY SOURCE NAILED THE REASONS IN 2012.
BELIEVE IT OR NOT, IT WAS BERNIE SANDERS IN A PIECE ON CNN.
Wall Street speculators are raking in profits by gambling in the loosely regulated commodity markets for gas and oil.
A decade ago, speculators controlled only about 30% of the oil futures market. Today, Wall Street speculators control nearly 80% of this market.
Many of those people buying and selling oil in the commodity markets will never use a drop of this oil.
They are not airlines or trucking companies who will use the fuel in the future.
The only function of the speculators in this process is to make as much money as they can, as quickly as they can
BERNIE BLEW THE WHISTLE
I've seen the raw documents that prove the role of speculators.
Commodity Futures Trading Commission records showed that in the summer of 2008, when gas prices spiked to more than $4 a gallon, speculators overwhelmingly controlled the crude oil futures market.
The commission, which supposedly represents the interests of the American people, had kept the information hidden from the public for nearly three years.
That alone is an outrage.
The American people had a right to know exactly who caused gas prices to skyrocket in 2008 and who is causing them to spike today.
Corn and wheat, in particular, contributed to the rise as each increased 12% and 18% worldwide THIS year, respectively.
PRICE PRESSURES FROM INDUSTRY CONSOLIDATION
"Perhaps the largest price pressure stemming from the processors and packagers (the intermediaries) in our food system is consolidation; that is, mergers and acquisitions. As reported previously, Big Food’s consolidation often indirectly spells higher food prices as a result of a lack of competition in the marketplace.