It is currently fashionable to claim a physiological floor of $50/barrel Oil has developed. Examination of the creation of this 'Floor' could provide some Insight, and some call for law enforcement. A Collusion of Interest may(?) exist in the market. Here is how it could work:
Hedge Funds could be heavily invested in Oil industry stocks. Hedge Fund Managers purchase Oil to manipulate the price of Oil. There is no illegality here, unless Oil companies have promised Hedge Fund Managers they would buy the Hedge Fund-owned Oil at the Price purchased. Oil companies may also have offered Incentives, such as a agreed Contribution to the Hedge Fund, made by Oil companies or their Executives.
The Price of Oil has hung far above the Market-clearing estimate Price ($37/barrel currently) for Weeks, if not months. Oil companies gorge themselves on excess Profits, which they do not use for Oil Exploration, or expansion of Plant capacity. Hedge Funds achieve financial growth, in a Market which is not producing Equity Profits. The Economy continues to be crippled by high Energy Costs. The Justice Dept. should already be hard at work, except of course, We have an Oil Executive administration. lgl
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