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  • Four-Dollar A Gallon Thursday – Gas Hits $4 Overnight 3 comments
    Feb 23, 2012 9:29 AM | about stocks: USO, GS

    Wholesale gas prices jumped 5% last night.

    Goldman Sach's head of energy research, David Greely, has been banging the oil drums all month and has helped engineer a 10% rise in crude, costing Americans an extra $10Bn a month at the pumps and in their energy bills (not even including the rise in food and transportation costs) in order to make his masters another Billion on their trades but he's not done there. Now he is celebrating Brent Crude crossing it's 2008 highs of $124 a barrel by recommending long positions on September WTI contracts at $107.50:

    Greely's main bullish premise for WTI is that one way or another, as Keystone was meant to do, they will find a way to reverse the flow of oil into Cushing, OK, where we measure our national inventories each week, and begin draining that facility dry at will. This will give the commodity manipulators total control over the price of oil by enabling them to add or subtract millions of barrels of oil each week and, if the Keystone project gets rammed past the White House - millions more can be drained from Cushing at the will of a single company.

    It has long been the dream of the US Energy Cartel to force Americans to pay the same ridiculous prices as Europeans for oil, despite the fact that the US produces over 10Mb per day right here at home, more than twice as much as Europe.

    Concerns of potential supply disruptions have increased as tensions between Iran and Western nations escalate, Greely said in a report today. Spare production capacity among the members of the Organization of Petroleum Exporting Countries has fallen to "dangerously low" levels at a time that the world's demand is recovering, Greely said.

    "We believe that stronger-than-expected demand against limited inventory and scarce excess production capacity leaves the market vulnerable to price spikes in the near-to-medium term," Greely wrote. "Oil looks increasingly compelling from the long side both as an outright position and a hedge."

    If this is giving you flashbacks to 2008, when Goldman Sachs stampeded their sheep into $140 oil contracts on the promise that the same conditions would lead to $200 oil - you're half right. The reality is that it's even more asinine now to make these statements than it was then…
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    Tags: GS, USO

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    Disclosure: I am short USO.

    Additional disclosure: Positions as indicated but subject to change.

    Themes: Oil Manipulation Stocks: USO, GS
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  •  
    10c/gallon tax? That's just a joke. Last time I was in the US, gas was $1.65/gallon (Florida, 2004). Here in Dublin (Ireland, not Tennessee) it's currently $8.06/gallon. I'm doing a lot of walking.

    I wouldn't say I'm a peak-oil advocate myself, at least not in the sense you use. I'm more a "things like oil are going to get more expensive as producing countries start wanting to live a 1st world lifestyle" type person. Except oil at $70 is where I'd expect "expensive" to be at.

    I believe $120+ bbl is where the US economy falls over so when "experts" come out predicting $200 oil, that's when you consider getting short. Where's Cramer when you need a proper short sign :-)
    23 Feb, 11:14 AM Reply Like
  •  
    The Oil Suppliers say its all SUPPLY and DEMAND.
    They are absolutely correct!!

    Its the SUPPLY of "Our Money" and their extreme DEMAND for it!!!
    23 Feb, 11:56 AM Reply Like
  •  
    Something that may have a market in times like these:

    A two seat in tandem electric car with enough storage to do grocery and light shopping with only the driver aboard, and enough safety to drive to work in a pinch.
    Possibly a scaled down Prius type for less money than a standard Prius i.e. a people's electric car for the thrifty and the needy, and keeping in mind that price is of the essence.
    Not a bad thing for a tax credit for the lower income groups either.
    Also, keep increasing those Nat gas powered busses and trucks!
    23 Feb, 12:22 PM Reply Like
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