Recent news articles suggest that a large, and possibly dominant, element in the surge in crude oil prices consists of speculation as opposed to actual demand versus supply. While demand is indeed rising, as driven by the growing Chinese and Indian economies, this does not explain the recent doubling of crude prices. Noting that poor economic conditions usually help the challenger party against the incumbent party in an election, and that many foreign countries want Barack Obama to be elected, this leads to a frightening possibility:
Are foreign governments and/or other entities manipulating oil prices to deliberately throw the U.S. economy into a recession to get people to vote for Obama?
OSAKA, Japan (Reuters) – International oil prices are being driven more by speculation than by supply and demand, Italian Economy Minister Giulio Tremonti said on Friday.
“My judgment is that the phenomena of demand and supply can cause price rises, but not so violent and sudden,” Tremonti told reporters at the gathering of Group of Eight finance ministers in Osaka.
On another note, Obama, while campaigning in Pennsylvania, said that gasoline was at four dollars a gallon–when it was still at $3.50. How did he know that gasoline would reach four dollars a gallon this summer?