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The U.S. Is Now EXPORTING Refined Petroleum Products, But the Oil Companies Are Gaming the System By Switching To a Different Benchmark to Keep U.S. Fuel Prices HIGH … And the Keystone Pipeline Will Create Even HIGHER U.S. Prices
Until this time last year, gas prices hinged on the price of U.S. crude oil, set daily in a small town in Cushing, Oklahoma – the largest oil-storage hub in the country. Today, gasoline prices instead track the price of a type of oil found in the North Sea called Brent crude. And Brent crude, it so happens, trades at a premium to U.S. oil by around $20 a barrel.
So, even as we drill for more oil in the U.S., the price benchmark has dodged the markdown bullet by taking cues from the more expensive oil. As always, we must compete with the rest of the world for petroleum – including our own.
This is an unprecedented shift. Since the dawn of the modern-day oil markets in downtown Manhattan in the 1980s, U.S. gasoline prices have followed the domestic oil price ….
In the past year, U.S. oil prices have repeatedly traded in the double-digits below the Brent price. That is money Wall Street cannot afford to walk away from.
Originally posted by ProfEmeritus
Unfortunately, the entire "Wall Street" system is nothing more than a group of rich "rail jockeys", armed with nano second computers that play the odds down to the trillionth of a second before the "race" begins. The losers in this race are the average Americans that don't have a chance to get in on the "action". In addition, these crooks use inside information not accessible to the general public to make their riches, at the expense of everyone else.
The Senate on Thursday passed legislation barring lawmakers from using insider information for personal profit, sending the bill to the White House.
Originally posted by Nite_wing
Who on Wall Street is in collusion to let the Chinese buy up billions of dollars in gas an oil leases on U.S. soil?
Obama stops us from drilling to become independent from foreign oil sources and then allows the Chinese to buy it up? Is anybody paying attention to what this guy is doing?
Are they so desperate to have China continue lending money to the United States that they would allow the Chinese government to pillage our precious energy resources?
Originally posted by Billmeister
An industry which has suffered directly and greatly from this fraud (yes, let's not pussy foot around) is the airline industry, who hedged its investment to actual cost, when the recently unregulated commodities market decided to use a different benchmark.
An Airline Buys an Oil Refinery; What Took Them So Long?
The nation’s second-largest airline by traffic, after United Continental Holdings Inc., said it will purchase the Trainer, Pa., complex from Phillips 66, a refining and marketing business that will be spun off from ConocoPhillips on Tuesday.
“Acquiring the Trainer refinery is an innovative approach to managing our largest expense,” Delta Chief Executive Richard Anderson said in a written statement. “This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast.” Mr. Anderson said the assets being purchased are worth $1 billion. …
In 2011, Delta spent $11.7 billion on fuel, which amounted to 36% of its operating costs. The previous year, when the tab was $2.8 billion lower, fuel consumed 30% of Delta’s expenses.
Originally posted by neo96
the simple fact is the more people competing to bring a good(oil) or a service to market the cheaper that will be.
It's a common belief that oil prices are set on the world market by supply and demand. Less supply and/or more demand causes prices to rise. Oil is getting harder to find; OPEC is holding back supply; China and India are guzzling it up; Iran is threatening to blow it up. And regulations are getting in the way of drill, baby, drill -- end of story.
But this fixation on blind market forces ignores the fact that Wall Street is financializing the commodities markets – especially oil – as it seeks new ways to pick our pockets. The same greedy swindlers who puffed up the housing bubble and then milked it dry are now hard at work doing the same with gasoline.
What is financialization and why is it coming to the oil industry?
Here’s a chilling definition provided by economist Thomas I. Palley (PDF):
Financialization is a process whereby financial markets, financial institutions, and financial elites gain greater influence over economic policy and economic outcomes…..Its principal impacts are to (1) elevate the significance of the financial sector relative to the real sector, (2) transfer income from the real sector to the financial sector, and (3) increase income inequality and contribute to wage stagnation.