Oil Speculators Will Ensure a Return to Recession = $30 oil coming
Oil speculators try to push up oil prices on the slightest hint of any good economic news. But higher oil prices just snuff out any chance of economic recovery, ensuring a return to recession. Higher oil prices also encourage producers to find and develop more oil sources ensuring that oil production capabilities grow beyond our need for oil.
If it weren't for over-speculation, oil prices would be $55 - $60 right now, based on moderate demand and our ability to meet that demand. But speculators are simply chasing each others' tails in pushing prices too high.
Out of control oil-speculators are laying the ground-work for one big whopping recession/oil crash.
Oil prices could easily crash to $30 again, just like 4 years ago.
it is a 'green' thing, the oil price. Make energy more expensive so people will use less of it, therefore saving the bugs, tiny bacteria, moles, cave spiders, spiny cactus, mosquito larvae, and assorted viruses from the ravages of people.
But considering the known fact that refined oil products have become the USA's largest export dollar wise, there will be no depression because GDP will remain high due to these refined oil products being exported. This country is being run by the oil companies and their government cohorts, i.e., the President of the U.S. Don't let appearances fool you into thinking otherwise. Devaluing the dollar against foreign currencies by turning on the dollar printing presses runs up the price of oil which only benefits the oil companies and it's stock holders. The rest of the economy suffers.
Yes, exporting of refined products is indeed the last brick supporting our weak economy. However the inflation created by it is ironically erasing any noticeable benefit. When the rest of the World slows demand of refined products due to price, we are going to sink like a brick -- nothing to fall back on.