Tuesday, July 7, 2009

Oil Prices Getting Funny, and High, Harlem

The word on the street, and 125th st Harlem NY is that oil and gas prices are getting too high. Even though the economy is in a depression, they are flirting with $70. It seems a near infinite amount of money is chasing a finite supply of this oil/gas commodity. Time to outlaw this speculation and go back to long-term energy contracts.

U.S. regulators say they may clamp down on oil and gas price speculators by limiting the holdings of energy futures traders, including index and exchange-traded funds according to Bloomberg.com. There will be Commodity Futures Trading Commission hearings this month but will they mean anything? We want a fight. Senator Bernie Sanders, a Vermont independent, and Representative Bart Stupak, a Michigan Democrat, blame speculators for last year’s surge in crude-oil prices to a record $147.27 a barrel and called for CFTC action to avert a repeat. Oil has climbed 41 percent this year in New York trading, while demand has dropped and inventories climbed. Time to put the whole speculative bubble system into bankruptcy.

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