Why Gas has Sky-rocketed in Price

The reason oil has skyrocketed to over $140 per barrel is because of speculation; rampant, "unregulated" speculation. Demand is not out-pacing supply. That's a myth started by the people who are profiting by betting up oil futures; investment bankers. Oil is being deliberately kept off the market to keep prices high.

Consider this: if supply isn't keeping up with demand then why there aren’t any lines at the gas stations like there were during the '70s?

Congress could end this charade in a minute by passing legislation that would close the Swaps Loophole and require steeper margin limits on oil futures.

But don't hold your breath. Wall Street is the biggest contributor to political campaigns which explains how we got into this pickle to begin with. It also explains why Congress's public approval rating has shriveled to a measly 12 per cent.

Here's an excerpt from Spiegel Online which explains the whole scam: "Commodities exchanges limit the number of positions an investor can take in the market, but Michael Masters, of Masters Capital Management, says the Commodity Futures Trading Commission (CFTC) has allowed unlimited speculation in these markets through a loophole. This so-called Swaps Loophole exempts investment banks like Goldman Sachs and Merrill Lynch from reporting requirements and limits on trading positions that are required of other investors.”

"Some experts fault the CFTC, charged with regulating commodities markets, for allowing such loopholes.”Congress has provided the CFTC the power to control this unlimited [speculation]; the law is very specific about establishing position limits," says Steve Briese, author of The Commitments of Traders Bible and CommitmentsOfTraders.org, a site that focuses on US futures markets. "The problem is they have abdicated this role."

[Excerpt of an article by Mike Whitney, ICH]