Wednesday, August 31, 2005

Refineries down, or just Wall Street Greed?

Crude oil prices fell in jittery trading Wednesday even after the U.S. government said it would loan oil to refiners struggling in the wake of Hurricane Katrina to keep production of gasoline and other fuels steady. But wholesale and retail gasoline prices leaped higher nationwide.

Some of the knottiest issues still to be resolved will be restoring electricity to Gulf Coast pipelines and refineries, which are also suffering from flooding that could very well have left critical electric motors submerged. It will be days before a full assessment of the damage can be done, industry officials and analysts said.

Meantime, wholesale gasoline suppliers have begun limiting the amount of fuel they sell to retailers in certain markets in order to make sure they do not take delivery of more fuel than they actually need.

Light sweet crude for October delivery on the New York Mercantile Exchange fell 56 cents to $69.25 a barrel, down from an overnight high of $70.65. On Tuesday, oil futures settled at $69.81, the highest closing price on Nymex since trading began in 1983, although still below the inflation-adjusted high of about $90 a barrel that was set in 1980.

But October gasoline futures surged by almost 20 cents to $2.67 a gallon on the Nymex. That is almost 75 cents, or 38 percent higher, than they were on Friday.

"There's too much uncertainty," said analyst John Kilduff at Fimat USA in New York.

One things certain ... the $1.50 estimated increase per gallon we will have from last Friday to next Friday, has nothing to do with oil production, hurricanes, President Bush, China, etc ... It has to do with Wall Street "speculators" freaking out over anything and driving up the prices.

Funny thing is ... it always has an immediate impact on my wallet at the gas pump, yet when it's all leveled off and the prices come down, they have an excuse why THAT isn't immediate. The real reason is ... once again ... Wall Street enjoying the extra profits while they can.

What a sweetheart deal. Invest, drive the prices up yourself over what is often no good/real reason, empty peoples wallets knowing they have no choice in todays age, sit back and enjoy your profits.

In a future article I will explain that this really isn't nothing new or exclusive to the oil industry/investments. That the increase of price is common in Capitalism. That I actually have no problem with it occuring.

Then I will burst the bubble by showing how the illegal aliens are cutting our throats along with the Capitalist economy by keeping the earning level flat while the standard steady increase in the cost of living climbs. I'll try to remember to include that the Government has had it's hand in it also by raising minimum wage. You know ... 'minimum wage jobs' ... the jobs that have seen a raise of over $2 an hour over the last few years, driving the cost of living higher, while all other wage earners pay rates did NOT see a $2 an hour raise, thus actually making their real dollar earnings less per hour. I'll also try to include the data that over 90% of 'minimum wage earners' are students, or spouses with part-time jobs for 'vacation' money. In other words ... the people that got the raises were those that have no obligations, and the people with obligations saw their real dollar earnings actually decrease against the cost of living.

Remember that while your at the gas pump and paying $1.50 a gallon more than you were a week ago.

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