You may have missed it. Unlike when the price of oil was rising, the price of oil dropped below $100 a barrel yesterday and yet this fact was barely
mentioned in the MSM.
Also barely mention was the fact that OPEC announced it would cut back oil supplies. Why? Because the price of oil fell below $100 a barrel and
cutting production would keep the price of oil high.
Oil prices edged higher in electronic trading Wednesday after OPEC members said the group would cut crude-oil output by 520,000 barrels a day
under a plan to roll back production to quotas set in September 2007.
The move is a bid to halt sliding prices in what OPEC described as "over-supplied" conditions on global energy markets.
One of many sources...
They did the same in 2006, and have controlling the price of oil by limiting supplies since the 70's.
The Organization of the Petroleum Exporting Countries early today announced plans to cut oil production by 1.2 million barrels a day, equal
to 4.3 percent of the group's total, in an effort to stop the slide in oil prices over the past three months.
So if decreasing the supply makes the price of oil go up, wouldn't adding to the supply from our own resources
make the price drop? Of course
it would. This is fundamental economics.
But Obama continues with his mantra of "we can't drill our way out of this problem."
Sorry, Barry. OPEC's history of using supply to control oil prices proves that
"YES WE CAN!"
Better yet, we can break OPEC's monopoly on controlling the price of oil.
But Obama wants the price of oil high. He wants it high because only then will alternative energy sources be economically viable. If oil is cheap it
makes no sense for investors to put money into alternative energy companies.
And of course Obama's biggest backers are in the alternative energy business. The law firm of McGuire Woods, led by partner Mark Brzezinski is
deeply tied in with natural gas giant Dominion Gas. The former chairman of McGuire Woods sits on the board of Smithfield Foods, which stands to
become the largest producer of biofuels in the country. George Soros is partnered with Perseus LLC, and is deeply invested in alternative energy
And lets remember that winning the Iowa caucus is what launched Obama in the front-runner position in the democratic primaries. Why did Obama win
Iowa? Because Iowa is one of the largest corn producing states, and Obama promised to continue subsidies to the corn farmers for ethanol production.
He also promised to continue placing outrageous tariffs on imported sugar cane which is a cheaper, more productive ethanol source than corn.
OPEC is smart enough to understand the cause and effect relationship between supply and oil prices. And guess what? So is Harvard educated Barack
And OPEC and Obama have this in common. They both want the price of oil to stay high.
The question is, do you?