The Problem of Speculation

Saudi Arabia seeks oil price curb – Jun. 9, 2008

The Saudi announcement comes just three days after the biggest single-day price leap ever, when oil surged more than $11 to surpass $139 per barrel.

Retail gas prices rose further above $4 Monday in the United States, the world’s largest oil consumer, following the unprecedented price rally.

The kingdom will work to ensure there will be no “unwarranted and unnatural oil price hikes that could affect international economies, especially those of developing countries,” said Madani.

“There is no justification for the current rise in prices,” he said.

There isn’t any market justification for the prices right now, at least in the fundamental sense.  However, with all the strangeness going on and the way the market works, the prices now have spiked tremendously which is exacerbating some very real problems in developing countries.  When people are already rioting in the streets, run away oil prices have the ability to be a very nasty catalyst.

The Cost of Stupidity Just Went Up

FARK.com: (3656470) As the national average for a gallon of unleaded regular gasoline reaches $4, keep in mind that mere months ago President Bush accused a reporter who asked about $4 gas of liberal bias

Dr.Zom : 2008-06-08 08:22:47 PM
Electing an oil man president and complaining when the price of gas goes up is like electing a pimp and complaining about the rising price of vagina.

And the truthiness flows…this particular piece of it coming from this story.

NEW YORK – The average price of regular gas crept up to $4 a gallon for the first time over the weekend, passing the once-unthinkable milestone just in time for the peak summer travel season.

Prices at the pump are expected to keep climbing, especially after last week’s furious surge in oil prices, which neared $140 a barrel in a record-shattering rally Friday.

While Americans who have to drive will feel the biggest squeeze, the increased prices also translate into higher costs for consumers and businesses, who will be forced to shoulder increased transportation costs of food and anything else that needs to be transported.

[full story]

Really folks, is there any question left as to where the blame lies for this debacle?

Der Vassermeister Quote 2008-06-08 08:52:25 PM
Do you know the price per barrel of oil in February 200[3]? (For historical context, that would be the month before the Iraq invasion). The answer is that in February 200[3], the month before the Iraq invasion, the per barrel price of oil was [$35.87]. Thank you preznit numb nutz.
[note: had to edit for accuracy, but I liked the point. source]