So, the excuse being given for spiking gas prices is news that Iran would halt shipment of oil to Britain and France. The problem with this excuse is that both Britain and France had already stopped buying oil from Iran. Not only that, but a director of the International Energy Agency points out that there are alternative supplies that would compensate even if we lost all exports of Iranian oil (which is unlikely, since they need the cash too).
Even so, the price of a barrel of oil zoomed from $79 to over $106 in less than four months. The only possible reason for this is Wall Street speculation.
Contact your Congress-critters and demand the CFTC set real position limits on speculators. That will allow market hedging to do its proper role, instead of just fueling bubble after bubble.
Also, support Obama’s efforts to repeal federal subsidies to the oil industry. Just like the income tax deduction for home mortgages fueled the housing bubble, even more outrageous subsidies, which the oil companies themselves admit they don’t need, are prolonging our dependence on foreign oil and artificially suppressing alternatives.
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Strange that you don’t mention the actual cause of the runup, which is Obama’s warmongering. Nobody can assure that oil supplies won’t be disrupted if Obama carries through on his threats.
Very funny, Max. If you want to make an argument, you’re going to have to give a bit more evidence than just accusing Obama of warmongering.
I’m not saying a case can’t be made for that, I’m saying that you have not made it.
The current excuse being given by everyone for the run-up is the spat Iran is having with Britain and France. What threats are you talking about? His threats (which he made good on) to wind down the war in Iraq? His current attempts to talk Israel out of attacking Iran? (see http://globalspin.blogs.time.com/2012/03/02/obama-offers-israel-a-path-to-avoid-an-iran-war-but-will-netanyahu-buy-its-terms/). His patient work to reduce the number of nuclear weapons in the world? (see http://thehill.com/blogs/defcon-hill/policy-and-strategy/210961-republicans-protest-potential-plans-for-steep-nuclear-cuts)
Or could you be calling “Obama’s warmongering” his ignoring calls for an attack on Iran from Rick Santorum, Mitt Romney, and Newt Gingrich in the Republican debates?
Oil starts going up in spring time every year, this is nothing new, just a tad earlier and a tad higher, but with war looming and sanctions taking hold these things happen.
Do you have any links IK that says France and Britian stopped buying Iranian oil? I know the EU has decided to stop buying it as a whole, but no one is forced to stop for…6 months I believe?
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