Obama, Holder Declare War On Oil Traders, "Speculators"

Tyler Durden's picture

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tmosley's picture

Oil rationing, coming soon to a former superpower near you!

TheGreatPonzi's picture

Barry Soetoro and the Bernank perfectly know that WTI>120 is the "end game"

So be prepared for more announcements like this in the coming days. 

TruthInSunshine's picture

What?

No mention of The Bernank's prolific, money printing ways?

Say it isn't so!

magpie's picture

And someone said print more, and the price will go down.

hedgeless_horseman's picture

It's those damn short sellers...ban them all...I mean longs.  That's it!  It is the speculators buying that are driving up the price!  Right.  Ban longs...in oil, but shorts in banks.  That's it.  Go get 'em Mr. Attorney General, good ol'...what is his name?

TruthInSunshine's picture

Paul Krugman is advising Obama to urge Bernanke to lower interest rates and to print more dollars to lower oil prices.

Rodent Freikorps's picture

You gotta wonder if the Goa'uld symbiont comes with the prize.

Kitler's picture

( RTR ) 04/21 02:31PM OBAMA SAYS WILL MAKE SURE THAT NO ONE IN OIL MARKET IS TAKING ADVANTAGE OF THE AMERICAN PEOPLE FOR THEIR OWN SHORT-TERM GAIN

 

I just found the culprits. It turned out to be the usual suspects once again. But they are outside of the US and are in it for their LONG TERM gain, thus by-passing Obamas search criterion.

 

 

“Traders of the the ICE core membership (GS, MS, BP, DB, RDS.A, GLE & TOT) wouldn’t really have to put much money at risk by their standards in order to move or support the global market price via the BFOE market. Indeed the evolution of the Brent market has been a response to declining production and the fact that traders could not resist manipulating the market by buying up contracts and “squeezing” those who had sold oil they did not have. The fewer cargoes produced, the easier the underlying market is to manipulate.” – Chris Cook, Former Director of the International Petroleum Exchange, which was bought by ICE.

Goldman Sachs, Morgan Stanley, BP, TOT, Shell, DB and Societe General founded the Intercontinental Exchange in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate ”dark pool” trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.

That was then... $120 is NOW!

 

Hell, the Saudi's are even cutting back production.

No shit.

Read.

http://www.forexyard.com/en/market-analysis/commodity/reduced_oil_output_has_little_impact_on_price-2011-04-20

Reduced Oil Output Has Little Impact on Price Wednesday, 20 Apr 2011

Oil prices fell for a second day Tuesday despite recent sentiments expressed by the Organization of Petroleum Exporting Countries (OPEC) and Saudi Arabia in particular. The oil cartel insisted on Monday that global supply was adequate and blamed market speculation and a variety of unrelated factors for the recent run-up in price.

 

 

Next mystery?

silvertrain's picture

Who does he think bids up the s&p?

rocker's picture

WTF  Now Bambi wants us to believe he thinks somebody will take advantage of us.  Now......

        After the Morque, Godman Shafts and Shitty Bank leveraged oil up.  They did everything from trading the futures market, to buying tankers full of it and holding offshore until they jacked up the price. With our tax dollars, bailout money and pomo funds.  Nice.  Now.......  WTF.......Unbelievable !!!

Rodent Freikorps's picture

Never forget BP.

They donated a lot of money. They need Libya.

What a coincidence.

Ident 7777 economy's picture

BP: Tool. A means to an end by the speculators, the hedge funds seeking 10 - 15% return ... regardless of the pain inflicted to the rest of us ...

avonaltendorf's picture

They [BP] need Libya.

Not true. Repsol and Eni, yes. BP no.

eatthebanksters's picture

Ironic....a week ago he was telling people to buy more fuel efficient cars and get rid of gas guzzlers...now he wants to root out fraud and corruption in the oil markets...why doesn't he attack fraud and corruption in the subprime scam the same way?  It's all a fucking distraction in a lame attempt to pass the responsibility to someone else.  Obama is a worthless fucktard!

US Uncut's picture

Cause he doesn't really intend to do anything. Just that the price of oil at the pump is fresher on people's minds than housing which is so passe. So he can appear to be championing for the little guy.... part of his "hope and change" old strategy. He is hoping he can do good and change the price for us so we will be so happy and reelect him.

jeff montanye's picture

maybe g.w. bush was wrong about fool me once, shame on you, fool me twice, well won't get fooled again.  but again and again and again by the same guy?  obama managed one of the great long cons in the history of the world but i think he's wrong to try the very same one with the very same marks.  again.

max2205's picture

Saudi is major pissed at us for Eygpt Prepare!

lynnybee's picture

KITLER :   thank you for that info / am still a learner .   holy crap, now i understand.   it's all such a scam .

Bringin It's picture

We're all still learning Lynnybee.

TheClub55's picture

Saudi's are not "cutting" production... they just can't produce any more.  We are not a peak oil, just peak easy oil and they had lots of easy oil that's ending.

JW n FL's picture
Peak Affordable Oil / Peak Lite Sweet Crude NOT! Peak Oil.. Wake Up Sheepeople! Share with a dumbass friend!
Madcow's picture

yes - 

there is plenty of technology on tap to blast deep sticky hydrocarbons with heat and steam and fuel compounds. military aerospace engineers have figured this out. they can get out the heavy oil and unconventional hydrocarbons.  

oil is expensive - but only for 4-5 more years. 

 

 

CrashisOptimistic's picture

But in 4-5 more years, even more conventional fields die.

You're trying to run up a down escalator.  You'll get tired.  And then you'll die.

Bent Nail's picture

I've always thought of it as enery expended to extract oil < energy derived from oil is a winning proposition. This equation is getting closer to equalibrium.

Hexus's picture

Great post. This article is another example of zerohedge defending the bankers and hedgefund pirates under the guise of the "free market".

"So what if they're taking our money, putting it into fraudulent financial instruments in order to drive up the prices of food and oil, leaching money out of the real economy and starving millions? If you're against that then you're a communist." - Insane ex-military tea partiers who populate this site.

When will you realise you are useful idiots of the Koch brothers, the whole Libertarian scam is designed to make you believe we shouldn't tax the rich. That is IT!

tomster0126's picture

The Saudis scarily have everyone by the balls...i think the world in the future is going to be run by the Dubai princes and all of these guys sitting on top of their oil hoards.  when everyone else is dying of starvation they'll still be driving supercars.

 

www.forecastfortomorrow.com

jmc8888's picture

Someone needs to pass out the Tretonin to rid us of the bankster goa'uld symbiote (i.e. parasite on the American economy), instead of the monetary heroin or naquadah they prefer.

Glass-Steagall

American (Hamiltonian) Credit System

 

Antarctico's picture

Someone needs to pass out the Tretonin to rid us of the bankster goa'uld symbiote...

What you want to use on the banksters is Goa'uld Symbiote Poison. Tretonin is the life sustaining drug used by a Jaffa after their symbiote larva is removed. Yea, I'm out of the geek closet. ;D

Rodent Freikorps's picture

+10 seasons.

I thought Claudia Black made it watchable again.

I miss that show.

Antarctico's picture

I thought Claudia Black made it watchable again.

I agree! With a less interesting actress than Claudia Black, the character of Vala could have jumped the shark on SG-1 all by herself.

Rodent Freikorps's picture

I've been in love with her since Farscape.

She is not only a good actress, she is smoking hot.

Did you know Christina Hendricks got her start on Firefly?

And let's not forget Inara from that show, too.

Scifi chicks are the hottest.

serotonindumptruck's picture

 

"Scifi chicks are the hottest."

+7 of 9

Antarctico's picture

+7 of 9

Ha! I see what you did here! :D

Burnbright's picture

I feel like such a dork for understanding everything you guys are saying.

Pez's picture

Nah just use fast actin' Tinactin. A fungi is a fun-guy

TBT or not TBT's picture

Who is John Goa'uld?   It's Barry Soetero.   There would be no need for the chairsatan to buy so many treasuries nor for the Treasury to sell so many bonds if this anti-american manchcurian candidate had vetoed his evil buddies in Congress down to, oh, a quarter of the deficit level he's running.  

Rodent Freikorps's picture

John Galt v John Goa'uld. There has to be a good short story in that at least.

tmosley's picture

Can you say "crossover"?

lol

Rand's capitalists uncover a stargate, and proceed to use it for what it should have been used for in the first place--trade en extremis.  Galt and his 1940's tech combined with free market efficiency versus the super-advanced Goa'uld and their arcane authoritarian slave economies.

Antarctico's picture

You gotta wonder if the Goa'uld symbiont comes with the prize.

Damn, never thought I would see an Stargate SG-1 analogy on ZH! :)

DeadFred's picture

Reptilian symbionts.  We were put into the reptilian sphere of influence by the treaty of Darvox.  (Sarcasm honestly but you sometimes gotta wonder)

knukles's picture

".... NO ONE.... IS TAKING ADVANTAGE OF THE AMERICAN PEOPLE FOR THEIR OWN.... GAIN"

Zardinuk's picture

Obviously the man doesn't understand the mutually beneficial exchange of goods...

Pez's picture

Not like the SEC understands.

sunkeye's picture

+1 @ hedgles_hors brutally witty or wittily brutal im not sure either way nice one

 

Lets_Eat_Ben's picture

Let's see em' sell the public on the idea that it's also the silver investors who are to blame (which i'm sure they would love to do) then i'll be impressed.

whatsinaname's picture

A rather long winded but rational rant aka explanation (for the sheeple) as to why gas prices are really rising by a trader -

Deficit Drop Off
Phil Flynn of PFGBEST - InsideFutures.com - Tue Apr 19, 8:43AM CDT
The Energy Report for April 19, 2011

In school we were taught that the US was the bedrock of the global economy and our triple credit rating was almost a foregone conclusion. US bonds were the safest investment in the world and the chance of a default was unthinkable. Of course with our politics in Washington, we now know that we are living in a fool’s paradise and what should be abundantly clear is that we can’t continue to have our cake and eat it too. 

Call it a deficit drop off! Oil prices dropped dramatically after the S&P downgraded the US debt outlook from stable to negative.  Precious metals saw extreme volatility as traders were not quite sure whether to take this news as bullish or bearish. Normally if the US debt rating is lowered the value of interest-rates will have go higher to attract investors to buy our out of control debt.  In that case, the value of the dollar would go higher. Yet higher rates could slow economic growth thereby creating a double whammy for energy prices. Lower demand and a higher dollar would mean lower prices. Normally that would be bearish for precious metal yet the threat of a downgrade for the US could shake confidence in the entire structure of the global economic system, creating a desire to get rid of worthless government paper and get into hard assets like gold, silver and even Black Gold, our precious crude oil. 

Now the question is whether Washington will finally wake up to the very real threat that stands to shake the confidence in the greatness of the Untied States of America. Our politicians live in a fool’s paradise just like the fools that are saying that evil speculators are driving up the cost of oil. Why can’t these people acknowledge the risks that are right in front of them? Why can’t they see that the US debt and the steps to keep our economy afloat is a major factor driving commodities? The Untied States of America is running a dangerous deficit printing money like it is going out of style and we are now at the highest risk of default in many years and people wonder why they have to pay four dollars of US paper to buy a gallon of gas! Is it any wonder why open interest is running to commodities? It is because the fundamentals demand it! Interest rates in the US are below zero forcing money into commodities! 

Wake Up! It is time to grasp the truly historic macroeconomic events that are playing out before our very eyes and realize that by printing money to pay off debt has a real cost to everyone in this country. It impacts the cost of oil. It shakes confidence in the purchasing power of the dollar. It shakes confidence to the global economic infrastructure and makes commodities inherently more valuable. I am tired of the growing attacks on the free markets and freedoms in general as people want to live in a world of denial. The US is in big trouble if they don’t get their budget under control. Oil is more expensive because the US has been printing money to prop up its incredible amount of debt.  I am tired of Washington blaming Wall Street or capitalism or speculators for the global economic problem when the problem is mainly created in Washington by those same politicians. They can’t keep spending money the US doesn’t have. You can’t keep printing money to pay of your gluttonous spending. You can’t keep strangling economic growth by taxing the heck out of the most productive parts out of our economy and continue to expect that we can provide the type of growth it will take to get the economy out of its current fiscal situation. Wake Up!

 

I am tired of analysts with such a narrow view of fundamentals who can’t acknowledge that the market is right and they are wrong. The market is acknowledging the impact of the US debt situation as well as the geo-political threat to oil which is at the highest level since the Arab oil embargo. Ever since I have been in the futures business I have heard people blame speculators for the price increases in oil, yet looking back over the last 25 years you can see a solid fundamental reason for the price moves. In fact I have been telling people since the year 2000 that explosive economic growth in China and OPEC manipulation has been driving the price of oil and not speculators.

 

Ident 7777 economy's picture

... and not speculators.

- - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -

Had me until those last three words ....

What caused the sudden drop (in oil, crude prices, etc) in 2008 again?