Understand this – wars start because of tit for tat back and forth…sometimes over small things. Iran has decided to take a much more aggressive reaction to Europe and U.S. policy as it relates to Iran. And now…Wall Street is about to clean up. Wall Street is putting in billions of dollars to buy oil futures which is going to push the cost of oil up, up and up. Remember this – when you buy a gallon of oil…you’re paying a certain % to Wall Street whether you know it or not. The mafia does that too; it’s not all that different.
“With the break in resistance, probably some fresh buying is coming into the market,” said Emori at Astmax. “Crude completely broke $100 so I think that will now be a very important support level.”
Hedge funds and other large speculators boosted their net- long position in crude futures to the highest level in nine months, according to the U.S. Commodity Futures Trading Commission. Managed-money bets that prices will rise, in futures and options combined, outnumbered short positions by 233,889 contracts in the week ended Feb. 14, the Washington-based regulator said in its report on Feb. 17. Net-long positions rose by 28,180 contracts, or 13.7 percent, from a week earlier.
Source: Bloomberg News
In 2010 – it was reported that consumers were paying an additional $300 billion more on oil than they would have otherwise had to had Wall Street not been skimming off the top.
Among those surveyed, estimates of how much speculation has inflated oil prices ranged from $10 to $30 per barrel. Using the low-end estimate of $10 per barrel, Reuters found that oil producers reap $300 billion in extra profits per year—profits that come directly out of consumers’ pockets.
Bernie Sanders on The Ed Show talking about the inside baseball with the CFTC, regulation of Wall Street and the impact on oil speculation:
For you to understand how oil speculation…just watch this clip:
Like us on Facebook?