Everyone was quick to call on Congress to go after the speculators who caused the increase in oil prices earlier this summer. Oil company executives were summoned. Congress wanted to file a lawsuit against OPEC. However, we are now sensing that there is an unseen hand affecting the market to the downside. The price of oil is down $1.55 to $101.03. This makes no sense given the fact the most of the rigs in the Gulf of Mexico remain "shut-in" since before Hurricane Gustav arrived. OPEC just curtailed production by 500,000 barrels per day. Below is the projected path of "Ike" overlayed on oil & gas platforms and refineries. Hurricane force winds extend 115 miles from the eye.
For all graphics: Rigs/Platforms: Blue: evacuated only; Yellow will require inspection before restart; Red: damage requiring repair; Refineries: Black: operational impact (partial shutdown) Green: Operational impact (full shutdown) Red: Damage likely; Ports: standard hurricane flags for wind
MMS reported Wednesday that staff has been evacuated from 452 production platforms (63.0%) and 81 rigs (66.9%) – (95.9% of the oil production and 73.1% of the natural gas production has been shut-in as a precautionary measure for Hurricane Ike.)
In the past, this event would have immediately pushed oil prices higher, not so today. What is a speculator?
A Speculator is a person who trades (i.e. derivatives, commodities, bonds, equities or currencies) with a higher-than-average risk, in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future price movements, or gambling, in the hopes of making quick, large gains.
Could Paulson and Bernanke be speculating with the global financial system? What are the fruits of their labor? Bear Stearns, Lehman Brothers, Indymac, Washington Mutual, Fannie Mae, Freddie Mac, US Dollar value at home & abroad, etc.
The following article provides a professional’s view of what is happening: http://www.reportonbusiness.com/servlet/story/RTGAM.20080909.wheinzl0910/BNStory/SpecialEvents2/home
Unequal weights and measures are fully incorporated at all levels. It so blatant that I’m sure the Wall Street crowd are joking about all the dopes on the outside of the "club". Such arrogance will come home to roost.