Obama Makes No Attempt to Curb High Oil Prices After Elections
From Oil Price
By Dian L. Chu
I guess the SPR Threat was politically motivated
When Oil and Gas prices were last at these levels President Obama utilized the threat of releasing the SPRs to put a lid on the rampant speculation in the oil markets. And yes with oil inventories at record levels here in the US, there is rampant speculation in the oil markets once again. The oil market is being pegged right alongside the S&P 500 almost tick for tick, regardless of overflowing supplies at Cushing, or large weekly builds in total US stocks.
No more elections to campaign for
President Obama and his advisors know this correlation by now, and they have fought this nasty correlation for consumers at the pump, with releasing or the threat to release the SPRs which sends the market in the other direction as oil can drop $20 on any release.
At the time of the last threat critics said that the president was politically motivated in utilizing the SPR release to manage oil and gas prices lower before the election so that high gas prices wouldn`t become a central voting issue, and hurt his chances of being re-elected.
High Level Politicians only care about Votes
Well, given that the last time prices reached $95 a barrel the Whitehouse started talking up the SPR release idea only six months ago, and oil prices have been over $98 a barrel for WTI and gas prices are higher than they ever have been for this time of year and set to go higher, and we haven`t heard a single mention of the SPRs? It is obvious that once elected Obama has conveniently forgotten about consumers’ pain at the pump due to rampant oil speculation.
Gas Prices Continue to climb with S&P 500
Gas prices are set to jump as gasoline futures for April are 16 cents higher than the March contract, so consumers are going to be in for a shock at the pump if this pace continues. I would hate to see where gas prices will be if Bernanke infused liquidity sends the S&P 500 to 1650?
Good thing we don`t have a robust economy!
I guess it is a good thing that Iran came back to the negotiating table, and we are overflowing with supplies right now in the United States. I would hate to see where oil and gas prices would be if we actually had a threat to supplies in the Middle East, or a tight oil market from a supply standpoint.
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