What’s behind gas relief?

A broad question but Bloomberg diagnoses some reasons, starting with the Fed.

Crude Falls on Federal Reserve Stimulus Halt, U.S. Supply

By Mark Shenk Oct 30, 2014 | Bloomberg

West Texas Intermediate oil fell after the Federal Reserve ended its asset-purchase program and U.S. crude production surged to the highest level since the 1980s. Brent declined in London.

Futures slipped as much as 1.7 percent in New York. The dollar strengthened a second day against the euro after the Fed’s announcement, curbing the appeal of commodities priced in the U.S. currency as a store of value. U.S. crude supplies rose for a fourth week as output increased to 8.97 million barrels a day,

“Yesterday’s Fed announcement is pushing the dollar higher, which is putting selling pressure on commodities,” Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut, said by phone. “The supply build yesterday may have been smaller than expected but it was still quite large. Ample supply and economic worry are going to continue to weigh on the market.”

WTI for December delivery dropped $1.05, or 1.3 percent, to $81.14 a barrel at 11:59 a.m. on the New York Mercantile Exchange.

Crude has collapsed into a bear market amid increasing global supplies as leading members of the Organization of Petroleum Exporting Countries resisted calls to cut production. Futures are down about 11 percent in October, set for the largest monthly loss since May 2012.

More Bloomberg

It’s only about time. We cannot have economic growth when oil is sucking up all the oxygen. Prices have been doubled since Obama took office. So the Fed is a reason. I guess we should have been blaming the Fed for the high prices, then.

The interesting thing is that Opec is holding production. Prices are bound to affect oil rich countries, especially Iran. Reuters 2012: “Tehran requires $117 [per barrel] to balance the books, according to the IMF”.

Here’s to hoping Obummer doesn’t do anything to stop the long-awaited correction. Was this supposed to be a pre-midterm surprise? I don’t know. The Opec statement hints at it.

High Gas Prices: an investigation

In-depth: The truth behind high pump prices

By Douglas J. Hagmann & Joe Hagmann

10 August 2012:
We’re seasoned investigators, so we have an inherent desire to dig for the truth. Experience and common sense has shown us that we should never rely on the “accepted” explanation for something when that explanation involves money or politics, and is repeated without challenge by the media. We don’t like liars and thieves, and will expose them whenever possible.

We wanted to get to the bottom of why we’re paying nearly $4.00 per gallon for gasoline at the pump. We wanted to know who or what is responsible for the current high price of gasoline? In addition to being a major economic burden for American families, it is also a national security issue, especially when our petrodollars are subsidizing Islamic terrorist activities.

The task to determine the truth was indeed a daunting one, not only because of the complexity of the issue but due to the facts being tightly wrapped inside various political and globalist agendas, “cooking the books” by using different reporting standards, and various other tangential issues. During our investigation, we even found two energy “analysts” using the same graph to arrive at opposite conclusions.

Nonetheless, we’ve conducted an extensive investigation in an effort to provide our readers with a concise and unbiased report that explains why we are suffering at the gasoline pumps. In the process, we’ve identified several significant lies that we are told to accept as the truth. [/…]

Read the whole report: http://www.homelandsecurityus.com/archives/6552


Its chilling that the explanations we keep hearing, repeatedly, do not touch the surface of it. And the sophistry in the blanket explanations do not cut it for many of us, they do not connect the dots. I thought it interesting how important the debasing of our currency has been, under the watchful eye of the fed, on oil and goods in general. But while many of us have been focusing our criticism domestically, isn’t it strange how no one wants to hear that? Yet we should just accept their specious reasons for high prices? This is only another part of the agenda of the powerful. But the powerful doesn’t mean the big evil oil companies. We had big oil companies when the prices were lower, by any comparison, so it is not unreasonable to look elsewhere.

And there are a lot of other explanations.

What should bother anyone is the way our tax dollars subsidize bio-fuels and alternatives while also paying the higher prices at the pump. Every time I see Obama or one of his cronies talking up their “energy policies” I want to scream, “would he ever want to tell us the truth about anything?” Only if it were aligned with his perpetual political agenda — which is basically one big lie anyway.