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A Market Driven by Speculation April 3, 2008

Posted by truthspew in Uncategorized.
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I’ve long thought that the price of a barrel of oil was artificially inflated and now someone comes and elaborates for me.

The reality is that demand for gasoline has actually gone DOWN in the U.S. while reserves of gasoline are up. The same is true of oil demand and reserves.

Refineries are scaling back because of the decrease in demand and the weakening dollar also puts its hand in to make us pay, pay and pay.

Part of the offset in gasoline has been ethanol but that forced farmers to divert resources away from feed stock to use to produce ethanol which is why we’re seeing $4, $5, $6 and $7 a pound meat. You also have to factor in the price of transportation in your food because very little of what we ALL eat is grown locally.

In essence, it’s the speculators driving the price of a barrel of oil sky high. And you’ll note that we’ve only been getting screwed since George W. Bush, a former oil man, has been in office. Any surprise there?

There is some good news though. It seems that they’ve found a huge oil deposit, well not found they knew about it since the 50’s, but it is now economically feasible to extract a minimum of 200 Billion barrels of oil from North Dakota and South Dakota, though they think there might be 500 Billion barrels there which would be a 100 year total supply for the U.S.

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Comments»

1. no milk - April 3, 2008

also OPEC is artificially controlling the supply and production of oil which causes the price to go up…


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