Home > American Society, politics, World Issues > This will be the last time you believe oil prices float freely in the market.

This will be the last time you believe oil prices float freely in the market.


Its time to end any delusion that oil is a free market commodity. It is time to realize that oil is a tool for politics and powerful countries to wield over the populations of this earth.

Oil cost fluctuations can control the opinions of nations. Most historians will say that we found that out in the oil crisis of 1973. I believe the most crucial thing that was discovered in the oil crisis of 1973 was that fear over oil shortages would support insane prices. Take a look at the before and after prices of barrels of oil.

The odd thing about the whole oil crisis in my mind was that America produced a large percentage of the world’s oil that year. 1973 US oil production was 10.95 million barrels a day which represents 18.7% of the worlds production. Why were we experiencing a shortage at all? We had enough oil for our country. Why was it not refined?

If you look at US crude oil production from then until now you see a steady decline. It is not because of the amount of crude that is available on US soil, but rather a definite plan to be the last one on earth with oil. America could increase its oil production 3 fold if it exploited the Alaska fields, or even just exploiting the Williston Basin in North Dakota.

That is the history of this “managed market” of the oil commodity. Now look at today’s news for the greatest proof of manipulation.

America has reversed the actions of 1973. In 1973, OPEC had an embargo against the United States. Now in 2012, the United States has an embargo against Iran. Iran produces about 4.25 million barrels of oil per day, for about 4.9% of the world oil supply. In any market with high demand, when 5% of the market source is taken out of the market, prices skyrocket.

But that is not the case with this embargo. Oil prices are falling rapidly. The former $110 price per barrel is now less than $97 and Shell Oil says that the price may drop to $70 a barrel this year.

So understand this correctly. Five percent of the worlds oil production has been cut off and oil prices have slipped 15%????? The threat of war in the middle east is imminent according to Defense Secretary Leon Paneta Israel could attack Iran as early as this spring.

So with imminent war in the middle east and 5% of the production already being cut…….why are oil prices decreasing?

Only one answer. It is a false market. It is driven by political motives and not by a true market demand. It is one of those things that the powerful people in this world realize it too large to keep track of, so they play games with the prices and with our lives.

Those who still do not believe in the oil market being a completely artificial market will say “what is the motivation this time”? It seems pretty simple to me. High oil prices will lower the willingness of Americans to support a war in Iran. If oil is only $70 a barrel, then “hell why not” will be the attitude. If oil was $130 a barrel and fuel prices were $4 per gallon, then there is no way the war would be supported.

Nothing we can do about it. Corporations are in charge. Just upsetting to realize we live in such a screwed up world.

Itia (abroad)

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