After Election Obama Doesn`t Care about High Gas Prices

EconMatters's picture




By EconMatters  



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.


How high would Gas prices be without Saudi America?


Gee, I guess we are so lucky the US is producing 7 million barrels per day, the best in over 20 years. Furthermore, we would really be in trouble if US GDP was over 2%! How about if unemployment was below 7% or banks were actually lending to small businesses? How about if the economy actually provided an abundance of jobs for college graduates so they could pay off their student loans? In short, the economic fundamentals matched the glorified stock prices! How high would gas prices be then?


Too bad for Consumers, Obama has forgotten all about your pain at the pump!


What a joke markets have become, how out of whack they are with regard to the underlying fundamentals of the global economy. Moreover, president Obama has shown his true colors regarding oil and gas speculation, as long as he gets elected, he doesn`t really care!


Further Reading - Higher Gas Prices & Lower Take Home Pay will Kill Rally


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Tue, 02/05/2013 - 13:17 | 3216700 SAT 800
SAT 800's picture

Won't wash. What this specific idiot is doing is following orders from his white corporate masters right now; and if only he weren't; things would be measurably better for you; stop pretending it didn't matter that you voted for the Kenyan Socialist; it does matter.

Tue, 02/05/2013 - 12:50 | 3216582 Hedgetard55
Hedgetard55's picture

As I have said before, Homie the Klown don't care bout nuthin but where his next bj is coming from, and it ain't Moochie.

Tue, 02/05/2013 - 12:33 | 3216483 DaveyJones
DaveyJones's picture

"consumers’ pain at the pump due to rampant oil speculation"

quite a few more factors than speculation. A substance that can move wars and false flags is not your everyday commodity. It's not what's in your tanks, it's what it cost to get it there. Not stupid papers numbers, but energy 

Tue, 02/05/2013 - 12:14 | 3216437 NEOSERF
NEOSERF's picture

1.  We will never see 6.5% unemployment again

2.  We will never stop buying our own bonds unless we can coerce the Japanese to buy them in return for us buying theirs

3.  Stock market will head unimpeded to 20K as there is no downside risk that can't be arrested with another fallacious economic data point the day after a decline

4.  The US will never see another balanced budget

5.  The Republican Party may lose control of the House and never regain any control of the legislative branch until the collapse really occurs (nobody gets elected preaching austerity when your competitor preaches free lunches)

6.  Real inflation will never be less than 5% per annum going forward

7.  Once the ECB starts its full crisis mode printing (it has not yet), expect 10% price increases every year

8.  Small business will quickly push every employee onto gov sponsored Obamacare and take the penalty

9.  Gas prices will hit $5 prior to the next election but miraculously decline to $4 in 2016

10. Iran will still be "cooperating" with international inspectors with nothing to hide in 2016

Tue, 02/05/2013 - 11:56 | 3216364 j0nx
j0nx's picture

"Thanks for the vote... bitches" - Obama

Tue, 02/05/2013 - 11:53 | 3216355 hedgeless_horseman
hedgeless_horseman's picture



Just another example of hypocricy by politicians. Thanks for reminding us.

Tue, 02/05/2013 - 11:47 | 3216333 lakecity55
lakecity55's picture

Ima crash AmeriKKKa to the Ground, Crackas!


Tue, 02/05/2013 - 11:46 | 3216330 booboo
booboo's picture

"Under my Aministration energy prices would necessarily have to rise as this is what I am told must happen by the guys on the other end of my strings"

Barry "the bullshitter in chief" Soetoro


Tue, 02/05/2013 - 11:45 | 3216328 NoWayJose
NoWayJose's picture

Without high oil prices, green energy cannot succeed.

Tue, 02/05/2013 - 11:50 | 3216346 lakecity55
lakecity55's picture

Without high oil prices, Communism cannot succeed!

Forward, Soviet!

Tue, 02/05/2013 - 12:11 | 3216418 LawsofPhysics
LawsofPhysics's picture

"Without high oil prices, the chosen companies and fascism cannot succeed!" - FIXED

With respect to the former soviet union, the end result will be the same.
Tue, 02/05/2013 - 11:44 | 3216325 johnnymustardseed
johnnymustardseed's picture

Why is it that gasoline is the largest export in the United States?  Fuck oil companies!

Tue, 02/05/2013 - 13:14 | 3216685 SAT 800
SAT 800's picture

I was just reading a market commentary the other day that said there was upward pressure on Diesel Fuel prices in the US; due to export demand from So. America. Since when has it been our problem to provide So. America with Diesel Fuel? This is how we achieve, what? Energy Independence? WTF? The fuck are we paying money we don't have to Saudi Arabia to buy Crude oil and then selling Diesel Fuel to So. America? Am I crazy; or is everybody else crazy?

Tue, 02/05/2013 - 11:44 | 3216324 the grateful un...
the grateful unemployed's picture

gas prices rise with the s&P since this is an asset based recovery. bernanke cannot make assets more valuable, but he can keep deflation from eroding their value (reflationary? yes) and all markets move as one, crude oil has asset, or future value as a store of something. gold is non perishable, but it has a carrying cost, best, oil is a consumable, housing has a carrying cost, and it is consumable, worst, which is why they work hardest to keep that levitating, but if nothing else, time decay, and new technology will make existing housing worth less. likewise for gasoline which is why the NG haters are out, including obama. its a tough job, balance consumer spending against the need to keep assets prices high (crude oil) in the end he took sides with chevron and exxon and the s&p. those who voted for him get to vote again and again each time they go to the pump. bon apetit

Tue, 02/05/2013 - 11:40 | 3216311 unplugged
unplugged's picture

I beg to differ.  He does care.  He wants them to go thru the roof to incentivize us idiots to dump our evil gasoline powered vehicles and replace them with Chevy Volts.

Tue, 02/05/2013 - 11:36 | 3216297 BeetleBailey
BeetleBailey's picture

Fuck Obama and his douchebag cavalcade of assclowns.

The poor, stupid, and idiots voted for this total piece of shit. Fuck them too.

Tue, 02/05/2013 - 12:31 | 3216496 DaveyJones
DaveyJones's picture

fuck _______________ (insert any politican from either two parties going backwards and forward) and his douchebag cavalcade of assclowns...." 

the bad math, policy, planning and wars took more than this idiot and will take a helluva a lot more to fix

Tue, 02/05/2013 - 13:33 | 3216764 Creepy Lurker
Creepy Lurker's picture

You can see it, I can see it, and about 14% of the rest of America (who self-identify as libertarians) can see it clearly. Yet all the rest are stuck in this left-right BS paradigm. Is everyone else really that stupid, or is there another factor at work here?

Tue, 02/05/2013 - 23:52 | 3218869 DaveyJones
DaveyJones's picture

I have wondered the same. And you don't need to be a "libertarian" or any other label to see it.  It's pure math, pure logic, pure history. We could not get here without the total corruption of both parties. This nation will not be saved without the total destruction of both.

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