I know we've beaten this topic to death over the past month, but I'm trying to figure out Obama's rationale. First, is he really really stupid on this topic? Second, maybe his so called move to the center was just a temporary brain fart. Third, which I'm assuming the real reason, is he 100% into campaign mode and he has to pander to his base of progressives. I'm going with #3, but #1 is a close second.

If Obama is really pissed about gas prices, maybe he needs to call Bernanke and tell him to quit printing money and exit QE2. Oil is still priced in dollars. Can't someone show Obama a fucking chart comparing the drop in the value of the dollar vs the price of oil. I do find it funny that 10 days ago Goldman Sachs advised its clients to sell oil. Goldman, the evil Wall Street speculator, can't even influence oil. The rest of the traders are all laughing at Goldman.

So Obama is going after traders and speculators. I'm so scared. Nothing is going to happen. I think oil is up what 50% since August, and gas is up what 40%. Seems like gas is under priced.

Hmmm, higher gas prices lower approval ratings. There must be a conspiracy. I like it (lol)

http://news.yahoo.com/s/ap/us_obama

-- Modified on 4/21/2011 6:00:14 PM

If you can show me that the value of the dollar has declined in equal (or close) proportion to the increase in gas prices, then that would be a real easy way to shut me up about it being the result of commodity speculation.

But apparently, I'm not the only one who's saying that speculaton has something to do with it.

http://www.reuters.com/article/2011/04/20/us-markets-oil-idUSTRE72D01W20110420

If you've read my previous posts, I have mentioned multiple factors in the increase in oil, including the drop in the U.S. dollar, geopolitical events, global economic improvement, and speculation, i.e. use oil as an inflation hedge like gold. Last time I checked speculators, traders, investors, whatever you want to call, trade in commodities, and they exist everywhere. There is nothing Obama can do about it. Nothing, except look good at campaign stops and rally his base.

oops!  That was a couple of years ago.

Yes,, he's in campaign mode and knows people are upset about high prices.  He's not going to actually do anything about it but he wants people to think he cares.

gotta disagree with you there willy.  we benefit from gas being so low in the states because oil is priced in US currency. with the printing machines going non stop recently, value of dollar goes down, less buying power, commodities, and pretty much everything starts to cost more.  it is the relationship between the supply of money and the supply of goods and services. money supply goes up while goods and services stay the same, or less, prices go up.  it is the most basic principal of inflation/deflation.  

now, that is not to say that speculators don't have any effect  on it, cause they do, but not as much as the basic concept mentioned above.  now you wait until oil stops being priced in US dollars, 7...$8 gas here we come.

for their April 12 call, which was actually to sell the CCCP basket of commodities of which oil was 40%. A second analyst  then predicted a substantial oil correction to 105 Brent.

    First, you have to understand that last year Goldman recommended to clients buying the CCCP basket on grounds that the likely reward outweighed the risk. So the April 12 call was part of the ongoing investment advice for this basket. The rationale for the April 12 CCCP call was not necessarily that prices were sure to fall but that the risk-reward equation now made a long position in these commodities a poor choice.

    I agree with that and in fact sold my XLE and FTO  earlier in the month and it still has not recovered to where I sold. Plus the April 12 call did influence oil - it fell $3.25 in a single day.

     And Goldman may well be right on the mark - brent oil prices now at $123 in the near term may yet still decline to 105 Brent or lower and this may turn out to be a savvy call for its clients.

     Sometimes you have to give up on a 5% gain to prevent a 20% loss. I did miss a dollar or two on the FTO and XLE but at least until it goes way up I am happy with my decision.

Willie loves charts

They always have the best talent and performance. One of the oil traders mocking Goldman was Dan Dicker. Goldman makes the call and immediately WTI drops from 112 to 106 in 3 days, and few days later WTI is back at $112, which I guess proves that Goldman, or any one influential trader or firm does not have as much influence as one would think.

I did find it funny that BAC made a $150 call the next day Goldman made its call. Will Goldman be right? Eventually! Who knows, maybe this weekend there will be an epiphany by all that serious deficit reduction budget is signed, or the Fed will exit QE2, or Kaddafi will get shot.

OK, why was I really pissed at Obama yesterday. It was because of his damn motorcade that gridlocked the west side of LA, from Culver City (Sony Studios) to Brentwood, just so he can rub shoulders and get money from Hollywood's liberals. I had to cancel an appointment because of it.

If he would open up local drilling, prices would plummett.

The guy reminds me of another joker, point at everyone else, but it is never his fault.

Remember this guys old catch phrase. "Who, Me?"

This gentleman's name is Alfred E. Newman and his signature phrase was: "What?  Me worry?" not "Who, me?"
More to the point, I agree that the probe is political cover.  Where you're really wrong is that opening up drilling would make gas prices "plummet" today.  Check with St. Croix and Gambler but, while more drilling is a good idea, it would likely have no affect on prices today.  Because it takes months for a well to come on line once drilling starts, not to mention that you never know if a well will actually hit oil.  Also, while you may have missed it, the government re-opened permitting for deep water drilling and has long permitted wells in more shallow water.  There also are huge tracts where licenses have been issued but no drilling has been started.  "Drill, baby, drill" is a cute phrase started by Palin but it's never been the real issue.

what would make oil plummet today is the releasing of some of the 700 plus million barrels of oil in the strategic oil reserve. it was the same with bush, instead of releasing oil reserves which were at over 95% capacity, he continued to allow the accumulation of oil for the reserve, and even allowed for the expansion of where the oil reserve is located, to 1 billion barrel capacity.

i think again, we can all agree we have an impotent  president whose only concern and goal right now is 2012.

The strategic oil reserve is for a national emergency such as a massive war where we wouldn't have access to foreign oil (perhaps because it's been nuked).  The purpose is not to lower the cost a few pennies.  Clinton made a token display of releasing some of the oil reserve for political cover but it didn't really affect anything.

On Aflred E Newman that is  

You cite some good points, but remember, we still HIGHLY regulate oil companies and even with those items you cite, there are still huge deposits off bounts (i.e. Anwar)

In addition, what about refineries. When was the last one built? I can tell you why, govenrment regulations make it almost impossible. Those items you cite are steps in the right direction, but not enough.

I agree re refineries.  Re energy I am in favor of an "all of the above" approach:
More drilling
More nukes
More wind
More solar
Anyone who doesn't like it should just go off the grid and stop whining.

It's definitely political cover.  Odds are they won't find much in the way of illegal actions, immoral and irresponsible, but not illegal.

Now as far as the drilling thing goes, I recall hearing that it would take years to make any significant increase in domestic out put.  I might be thinking of opening up drilling off the east coast which I don't believe has been fully mapped out.  
Living on the east coast, let me tell you, I am much more comfortable with windfarms being set up then oil rigs.

Another thing about increasing our oil output...  while it might bring more money into the country, or keep more of it here, would it actually lower costs here for the consumers?  Isn't the price for oil set on international markets, which seems to be effected more by speculation at the moment then supply and demand?

Man, I am so sick of hearing the "It won't change prices today" argument. A journey of 1000 miles begins with the first step. We've been saying 'drill baby drill' for years now. The response is always the same "It won't make a difference in the short term". Really? Thanks for cluing us into that guys! How about we start drilling NOW before your monthly gas prices actually exceed the mortgage payment on your house?

Yeah, we know Obama actually did betray his base just a little by approving limited drilling of the continental shelf. Big whoop. There are millions of barrels untouched in ANWAR, but God forbid we give a caribou a tummy ache by drilling up there.

Agree on drilling, wind, and solar.

Nuclear? Did Japan teach you nothing? They still don't have the cores fully cooled, more than a month after the earthquakes.

Agreed regarding the shit about to hit the fan with regard to coal power plants. Every time I see a commercial for the new lines of electric cars coming out. All they are doing is re-arranging the deck chairs on the Titanic. So we reduce emissions from gas consumption, and increase emissions from burning coal. Six one way, half a dozen another. And if Congress ever passes Cap and Trade, all those tree huggers who went out and bought themselves a Volt or Leaf will be crying their eyes out when the electric bills start rolling in.

PS. Never. Ever. I mean never. Use "nude" and "Clinton" in the same sentence. I'd rather be waterboarded than imagine that particular image.

ready to be built but the Democrats are putting the brakes on their construction because of "environmental" concerns. For example, Nevada Power wants to build two $1 billion power plants in Ely Nevada. THe fuel i.e. coal would be transported via rail from the Powder River Basin in Wyoming. Sen. Reid has put  a stop to the rail line and the power plant. Others in the works are for a rail LINE ACROSS the Dakotas.

What is Obama thinking; electric cars run on air? Expect other commodity prices to increase. The EPA has not approved a lead/zinc mine in the United States since the Ford Adminstration.

I'm waiting buddy for the proverbial shoe to drop. Every sharp increase in oil prices since Post World War II has resulted in a recession. I expect unemployment figures to increase again, by next summer. Companies  already are having a difficult time estimating the cost of OBamacare. There is too much uncertainity, especially as you point out Obama's monetary policy. Can you say stagflation?

Obama's monetary policy is scarier than imagining Sec. of State Clinton nude.

-- Modified on 4/22/2011 7:25:18 PM

I produce oil, plain and simple, I have nothing to do with refined products, and just remember you simple dolt that every barrel I produce is one less barrel we have to import from countries that don't like us.

Your statement is like blaming the hard working farmers for high food prices. I don't set the price anymore than a farmer sets the price for wheat. Oil, like wheat or sugar is an internationally traded commodity, not just an American issue.

Sometimes I just can't believe how incredibly stupid people can be.

and most experts will agree that it will be about five years after ANWAR is opened before we start seeing the first drop.

Take this info any way you like, I am just pointing out some facts.

and it's not illegal if everyone starts betting on the "come". If the price goes to high, supply will eventually rise and the price will retreat. That is unless there is some major disruption in supply which would send prices through the roof, and that fear has added about $20 per barrel to the price of oil IMO

Personally I believe oil should be trading around $80, but I am very happy with my pay raise TYVM. lol

Like, don't build nuclear plants in a major fault zone.
Don't build plants next to the ocean where there's a risk of tsunamis.
Have adequate backup power sources on hand in case your electricty goes down.
Don't have incompetants and lackeys running your version of the NRC.
Actually shut down aging plants when they've ended their useful life instead of renewing their licenses.
All of these things were true in Japan.  
None of them require some kind of technical breakthrough to fix.
Sadly, there is one such aging nuke near me in NY and others in California.  Why are they still operating?  Because we have been foolish enough not to build new ones.
All our plants have multiple backups for the electrical and pumping needs as part of our post-9/11 emergency planning.

I said I was in favor of drilling, and I am.  What about that is hard to comprehend?  In fact, I'm in favor of drilling in ANWAR, too.  We drilled on the North Slope and built the pipeline and all the doom-sayers were wrong about wildlife being affected.  The big problem up there wasn't the pipeline's fault, it was the result of a drunk being put in charge of a supertanker.
But my main point still holds true.  We could open ANWAR and every other place for drilling tomorrow and it would not drive down the price of oil for quite some time.  Despite that, we should still do it.  We just shouldn't be under any illusions about the impact on prices.  You seem  to think my position on this somehow invalidates my position on drilling, though I can't quite figure out why.

We need to pursue all. My "personal" belief is eventually solar will be the way to go once we have the technology, but we can not sit around and "HOPE" (word chosen on purpose) that is will mature.

Our hunger for power / fuel is growing at an alarming rate, and now that other contries are really starting to become developed, the demand is taking off at an alarming rate.

Work on the power sources of the future, but harvest what we have today as well.