The Price Americans Are Paying at the Pump for Iran Sanctions

This is a quick follow up per our previous article about U.S. and Israel Middle East foreign policy driving high gas prices.   If you look at the gas price chart in that article you will see the steady rise in gas prices since Congress (i.e. both parties, as well as Obama) authorized AIPAC's plan of economic sanctions on Iran (which began in the last half of 2011).

The Christian Science Monitor recently posted this article just over a week ago providing more evidence that supports our article, citing experts, and also explaining those sanctions.  Are you sure you want Congress to impose those sanctions now?  Are you willing to bear the economic consequences of sanctions imposed due to pure propaganda and fear-mongering by the Israeli lobby (just as the neoconservatives did to sell you the Iraq war), when Iran has no nuclear weapons capability any more than Saddam Hussein did?  There is economic "blow-back" to all Americans due to this, and surely more to follow.  Think about it and let Congress know what you think!

What do Iran sanctions cost you? About 25 cents a gallon, experts say.

While consumers may support sanctions on Iran to dissuade it from pursuing a nuclear weapon, a foreign trade advocate says, they should also be told how sanctions impact Americans.

Then there is this good article too from Juan Cole:

Obama, GOP won’t Tell Americans that Iran Sanctions drive Gas Prices

Oh, and for good measure, to prove our analysis is unbias, even Fox Business has reported this, so it must be true [sarc]!   We just report, you decide:

 Experts To Congress: Iran Sanctions Fuel High Gasoline Prices

U.S.-Israel Middle East Foreign Policy Behind High Oil and Gas Prices

 A FRESH VIEW:  

AN OBJECTIVE ANALYSIS ABOUT GAS PRICES

If you listen to talk radio, whether national or local, you will probably only hear about supply and demand influencing oil and ultimately our gas prices.  The purpose of this article is to provide summary proof that our high oil and gas prices over the last decade are not only, or even primarily, linked to supply and demand (as Economics 101 teaches us), nor solely to Big Oil (as others claim, albeit they play a role), but by other factors considered by market investors, which some call "speculators", on Wall Street who ultimately set the price of oil through market trading.  They of course take into account supply and demand, output in millions of barrels produced, imports and exports, etc.  But a large part of speculation is entirely driven by what they forecast for the oil business climate particularly in the Middle East too. The headline states the conclusion up front, but let us walk through the analysis to demonstrate how we got there.

First, let's look at the clear and non-partisan history of gas and oil prices.  (Click on any chart for a clear and enlarged view).

POINT 1:  GAS PRICES HAVE BEEN HIGH UNDER BOTH ADMINISTRATIONS

During the Bush administration they were as high as 4.19 per gallon nationally.  We are close to 4.00 per gallon under Obama, projected to pass over that threshold in May of this year.

High gas prices during both administrations; sharp drop during Nov. 2008 elections

So the highest and lowest marks have been shared by both administrations, respectively.  But Americans have grown way too complacent about and used to this.  Note that during the elections of 2008 we were only paying about $1.79 per gallon!  Yet that was still high compared to about $1.29 per gallon when Bush took office in 2001 (not shown in these graphs). 

So what changed gas prices so dramatically?  The "elephant in the room" that no one talks about, as each party tries to portray their own talking points, is foreign policy and middle east wars.  The history of oil and gas prices shows that it was after 9/11 in 2001, and primarily when President Bush, influenced by the Israeli-neoconservative propaganda and persons within his administration (Cheney, Wolfowitz, Rumsfeld, and the rest of the PNAC group), moved America into a decade long war with Iraq under the false pretense of WMD and mythical images of "mushroom clouds".   That had a direct and immediate impact upon oil and gas prices as the following charts will show.

POINT 2:  WARS AND 'FEAR PREMIUM' TRUMPS SUPPLY & DEMAND--Middle East Activity, U.S. Foreign Policy and Wars, Drive Up Oil Prices 

Look over this graph very closely (click to enlarge) and try to refute or disbelieve that that wars and Middle East tensions are the most significant factor behind high oil prices.  Look and see what the norm of oil prices was prior to the invasion of Afghanistan and Iraq after 9/11:

High crude oil prices began during Bush administration, invasion of Afghanistan/Iraq.

Now notice on this graph the volatility of price compared to growing, steady supply.

Supply has been steadily increasing yet oil prices fluctuate dramatically.

  

First note after Bush was in office, and even after 9/11, oil was still trading well under $30 per barrel.

Second, that oil prices only rarely crossed $40 per barrel before 2002 (i.e. note too the CIA fomented the Iranian Revolution, which led to the Iran/Iraq War on chart), when the war on Afghanistan began and the war on Iraq became inevitable to the investors/speculators, and oil prices have never recovered since war in the Middle East has continued to this day.  It is NOW THE NORM for oil prices to be over $80 to $100 per barrel through the decade long wars for "regime change" in Iraq and Afghanistan, which are still to be completely ended.  And now Iran is in the cross hairs.  Thus the Bush administration's unnecessary war on Iraq has "reset" oil prices, with over a decade of Middle East wars now, including Israel's attacks on Lebanon and Syria during the Bush administration, per the market prices on oil.  Would not ramping down Middle East wars and tensions reverse oil prices?  Yes, just ask the traders who trade in oil.

POINT 3:  Growing Global Demand Does Not Account for the New Level of High Oil Prices

This article (with graph) shows that global demand (consumption) has indeed been increasing steadily and lately somewhat greater than supply, which does account for some upward pressure on oil prices.  But that does not explain the oil prices' dramatic fluctuations and much higher averages and spikes that this demand could account for.  In fact, recently the Saudis (who know quite a bit about oil supply and demand) called the present high oil pricing "irrational".  They mean that there is no limit of supply vs. demand that justifies the current market price of crude oil.   Note too that the Saudi oil minister spoke of "irrational fear" of shortage of supply versus that demand, affecting the spot price set in the market by investors and "speculators", which is a direct reference to the "fear premium" we have alluded to before, including regarding fears due to wars in the Middle East, past and present (Iraq, Iran, Syria, et al).  Already oil experts say that this year supply is catching up with demand while there is a price elasticity in gas prices--i.e. U.S. demand (consumption) has dropped during higher pricing.

POINT 4:  U.S. Oil Companies Are Not Helping with Supply--Cutting Refining, Increasing Exports

First, while just complaining about government hindrance of drilling refinery capacity has deliberately been reduced--to increase profits through efficiency, which puts a bottle-neck on supply!  I bet you have never seen this graph about their inventories as demand has increased.

 Second, though the U.S. is a leading oil producer (i.e. refining crude into petroleum products), it has recently become a greater exporter than importer!  Why?  Hoppy Kercheval should have asked this with the oil exec recently on Talkline.  Yes, more drilling is needed, which the current administration is hindering.  However, U.S. oil companies are not helping us either where they are able. 

U.S. Produces More Oil Than Iran

U.S. Companies Now Export More Oil Products Abroad

POINT 5:   Value of Dollar and Inflation Do Not Account for High Oil and Gas Prices


Look and compare this inflation adjusted chart to the ones above (noting differing date range).

Note again the same pattern, while considering these significant dates about foreign policy and regional tensions in the Middle East:

1.  The only prior high peak was during the 1979-80 Iran/Iraq War, which was in part sparked by the CIA's prior covert ops sparking the Iranian Revolution, which ran up prices immediately.  This is when Rumsfeld was shaking hands with Saddam Hussein and the U.S. was supplying WMD to Iraq and Saddam Hussein (ironically).

2.  Oil prices hit $60 per barrel during U.S. military ops against Iraq in Kuwait in 1991 under Bush I.

3.  Late in 2001 after 9/11 was a price spike as talk of war and invasion of Afghanistan began.

4.  Late 2002 was war-mongering moves by the U.S. and the invasion of Iraq in March 2003.  The steep climb in prices began.  The war on Iraq continued officially for over a decade until 2011.

5.  Prices consistently escalated as the U.S. and Israel expanded the "war on terrorism" and violence in Iraq, along with a "surge" of more troops.  Note oil prices continually increase in the trading markets (while supply continues its normal growth, per previous graphs).  Israel bombs Lebanon in 2006 and bombs a site in Syria and also bombs Gaza against Hezbollah.

    Prices also rose after Hurricane Katrina which pinched some U.S. refining capacity for a time.

6.  As the U.S. and Israel increased war talk about Iran as a "threat to Israel" toward the end of Bush's 2nd term oil prices spiked dramatically into 2008.

7.  Elections Nov. 2008 showed a sharp drop in oil prices as talk of ending the Iraq War was entertained and a softer Middle East policy was hinted at by candidate Obama.

8.  Oil prices began to rise quickly in 2009 as Obama talked about a "surge" of his own, appointed the same Bush-generals in war operations and violence surged up into 2010.  (See, no matter the administration; "it's the war policy, stupid").  Granted, this is also when the Gulf Spill changed Obama administration's policy on off-shore drilling, but with no immediate effect upon supply.

POINT 5:  It is Economic Suicide for the U.S. to Increase Conflict with Iran

Do you think this chart shows the potential for such a conflict to inflate oil prices from a "fear premium" on Supply?  Experts think so: See here in regard to Economic Sanctions already begun (though propaganda Op-eds from pro-Israel groups are now attempting to downplay this, to protect their policy on Iran).

Does anyone want a repeated spike of oil prices like during the Iraq-Iran War (see graphs previous)?  Prices of over $200 per barrel have been mentioned if there was an Israeli strike on Iran's nuclear facilities, because of certain retaliation by Iran, and immediate inflammation of war in the Middle East.   TELL CONGRESS TO BACK OFF THE WAR-MONGERING AND SANCTIONS AGAINST IRAN UNLESS YOU WANT TO PAY FOR IT, LITERALLY, IN YOUR GAS AND CONSUMER PRICES.  (It is irrational to believe Iran would attack Israel without provocation).

POINT 6:  Oil Prices Influence All Consumer Prices, The Whole American Economy

CONCLUSION


If foreign policy affects oil and gas prices, then foreign policy affects the entire U.S. economy, of which oil and gas prices is a key factor.  Isn't that what we have seen since the invasion of Iraq?  The price of all consumer goods has gone up, and stayed up, along with oil prices.  This pattern is undeniable and will continue.

ISN'T IT VERY CLEAR WHAT DRIVES OIL PRICES UP?

Why does neither party bring the "war premium" or "fear premium" or "foreign policy" about oil prices?    Because they don't want to offend the powerful Israeli Lobby, AIPAC, which holds a hammer over every member of Congress and causes presidents to tremble.  It's all about wars for Israel and/or "democracy" in the Middle East; regime change by force.  But President Obama, being provoked, finally let the truth slip out, for which he was quickly hit with broadsides from all propaganda cannons for.  But he was partially right.  See the article:  Obama Administration blames Israel for high oil prices.  That was frankly a breath of fresh air to even read the headline (even though we are against his entire philosophy and most of his policies).  

The truth is often not politically-correct and particular interests groups are always pressuring others to prevent free public debate.  But it is blind beyond belief not to talk about Middle East and Iran foreign policy when discussing oil and gas prices and the U.S. economy.  It needs to be brought into the discussion immediately as even the graphs show that oil prices began their increase immediately as sanctions on Iran and war-mongering by Israel and the U.S. surged last year.  Market investors in oil, who indirectly set our gas prices by consequence, pay attention to all of that.  So why shouldn't we in the social and political arena?  It is stupid to ignore it.

This also demonstrates that unjust wars (e.g. Iraq, potentially Iran) have "blow-back" effects on the U.S. domestic economy.  It is a Biblical axiom that "you reap what you sow".  There is a Law of Consequences.  "What goes around" has effects that "come around".  It's time to pay attention to this, and talk openly about it, including in Congress and on talk radio.  If you think this argument has merits, then by all means pass it on for the benefit of all Americans, irregardless of party. 

More 'Economic Sanctions' or War With Iran? Sen. Rand Paul Calls Out Congress

What's driving up gas prices, everyone asks?  The very real 'fear premium' (a fear of potentially restricted supply due to regional tensions) on oil that investors/speculators include in trading in the oil market.  It is therefore impossible to divorce Foreign Policy from America's Economy and National Debt.  (This was acknowledged briefly by the oil expert interviewed last week by Hoppy Kercheval on Talkline).  Yet seldom do politicians, or talk radio hosts, address such things together.

More economic sanctions on Iran is a clever way of walking (by the lobbyists' manipulation) the U.S. toward war and drives up the 'fear premium' about supply in the oil trading markets.  Limited Government (Tea Party) type people like Sen. Rand Paul understand how aggressive foreign policy in the Middle East not only endangers a casual, unconstitutional attitude toward war (particularly undeclared wars by the Executive Branch, by both Bush and Obama) but also has economic consequences for all Americans. In other words, there will and is already economic "blow-back" on Americans of economic sanctions on Iran!  Ironic, isn't it?

Remember, it was sanctions on Iraq that began that war.  Sanctions are economic warfare and an economic precursor to it.  AIPAC (the Israeli lobby, the most powerful in Washington) as well as Israeli PM Netanyahu, and a lot of false religious propaganda (i.e. Christian Zionism theology, prophecy) used to support the secular (not Biblical) state of Israel, is pushing American foreign policy with Iran.  The majority of Americans by far now know that Iraq was (at least) a "mistake" and want us out of Afghanistan now and out of the "nation building" (read "regime change") business altogether.  Yet under Obama we have proceeded, without Congressional approval or declarations of war, to use military campaigns in Libya for regime change while Syria and Iran are now entering the cross-hairs (and have been since the neoconservatives in the Bush administration used 9/11 as their pretense).

Tell Senators Rockefeller and Manchin, as well as Reps. Capito, Rahall, and McKinley to listen to you instead of AIPAC.  Economic sanctions on Iran are directly, already, increasing our gas prices and the price of all consumer goods will soon follow by consequence.  After all, do AIPAC and Israel care about the U.S. economic consequences of higher oil and gas prices from increased Middle East tension and wars?  No, not one bit.  And the elite in Washington that vote for sanctions do not feel the economic consequences like you and I do.  So make Congress listen to you instead.  Or, do nothing but don't complain about high gas prices or when groceries and consumer goods go up again as they did already during the Iraq campaign. When will everyone wake up to this!  Why not tell them what you think now instead of complaining about even higher gas and grocery prices later?

Listen to Sen. Rand Paul's objection on the floor (video below) and read about his reasonably offered amendment to the Sanctions bill which was intended to be a wake up call to Congress to think about the careless path they are being pushed into and complying too readily with.  What an excellent and persuasive speech!

War With Iran? Sen. Rand Paul Calls the Question

2012: The Year Economic Depression Begins in West? Why Gold is Suddenly Falling, Stock Market Next?

 UPDATE (Mar. 23rd):  Note this latest 30-Day Gold Chart (from same source) since we posted the article

 AN ECONOMIC ALERT: GOLD AND STOCKS TO FALL SEVERELY THIS YEAR SAY INVESTMENT EXPERTS

The UK podcast interview referred to below by this summary article will shock most hearers who thought that things were just about to get better economically.  Before you buy gold (edit: for a short term investment) because of its historic performance you should stop and consider this first, since prudence is wise. 

A prudent man seeth the evil, and hideth himself; 

But the simple pass on, and suffer for it.

Solomon - Prov. 27:12

The consequences of not looking ahead can be disastrous, as Solomon's proverb proves, calling it stupid to ignore an approaching evil.  Even the ants are busy preparing in their harvest for winter, says the preacher of wisdom in Proverbs, and bids us to learn from their example.  An Economic Winter is coming that may be a very long and severe one, even decades in the West.  This is an economic alert based upon some economists expertise that should be heard, especially to those who think they are safe for buying and investing in gold for the short term, which has been promoted much for good reason as governments print money, as a hedge to inflation.  You won't hear this from the "feel good" editors of Network News.  Government Debts and threat of Iran conflict (thanks to Israel and AIPAC's aggressive influence on Congress contrary to American interests) continues to push up oil prices, which will cause massive inflation in all consumer goods (including gas to over $5 per gallon by summer), are among the things that paint a very bad picture for this year as Western economies begin to tumble, right when the U.S. in particular thought things were getting better.  Also looked at is the real reason that Gold fell almost $100 per oz last week from 1790 to 1703, which is what provoked this interview.  As of this morning, and after a slight recovery Friday, Gold is now down to 1680.  Read on.  

Experts say, "It's no longer corporations that are economically crashing, it's governments."  Government debts are being summoned for reckoning.  Greece was only an example of more to come.  Portugal, Spain, and others are on deck.  The UK could be next after them.  The U.S. is actually, despite bailouts and tricks, "in a recession" and has massive debt that it must deal with (as Senator Rubio has foretold "must be" dealt with this year).

Outlook for West:  "Era of De-leveraging" government debt, "depression for 20 to 30 years" to clear massive government debts, Gold to fall to maybe as low as 1200 to 1400 this year, Stockmarket to "fall 30 to 40 %" this year (markets must aborb Greek default, with more coming, and European bailout).  Temporary stronger dollar this year is bad for gold and metals, due to Euro decline because of European debt bailouts (Greece).

These are just a few things mentioned on this reputable UK Gold Investment group interview.  THIS IS A MUST-HEAR PODCAST BELOW.  (You have to respect a Gold investment group that permits such a bearish outlook on gold investing to be aired with their sponsorship!)

The wealth manager in this interview says he is heavy on cash instead of gold this year (until later years) and explains the gloomy state of US and Western European governments and their economies. 

02-Mar-2012
Jonathan Davis and Michael Hampton talk to Dominic Frisby about gold
In this podcast Dominic Frisby, of the GoldMoney Foundation, interviews both Jonathan Davis, economist and wealth manager, as well as Michael Hamp
Podcast Interview and article here

US to House Diplomats in Iran, Oil Prices Drop Immediately

This is the real reason oil prices dropped sharply Thursday, when this news broke overseas, 5 hours ahead of US time. NBC Nightly News last night (Thurs, July 17) had it right in interview with economist who said oil prices have included an "Iran premium" due to war rhetoric from US and Israel. Immediately the price fell when it looks like diplomacy might open up a bit.

clipped from www.guardian.co.uk US plans to station diplomats in Iran for first time since 1979 Washington move signals thaw in relations The US plans to establish a diplomatic presence in Tehran for the first time in 30 years as part of a remarkable turnaround in policy by President George Bush. The Guardian has learned that an announcement will be made in the next month to establish a US interests section - a halfway house to setting up a full embassy. The move will see US diplomats stationed in the country. The news of the shift by Bush who has pursued a hawkish approach to Iran throughout his tenure comes at a critical time in US-Iranian relations. After weeks that have seen tensions rise with Israel conducting war games and Tehran carrying out long-range missile tests, a thaw appears to be under way. The White House announced yesterday that William Burns, a senior state department official, is to be sent to Switzerland on Saturday to hear Tehran's response to a European offer aimed at resolving the nuclear standoff.

NBC NIGHTLY NEWS, OIL PRICE DROP:
Less US Demand, Less War-Mongering Against Iran

Bush's Neoconservative War Agenda is the Chief Cause of High Gas Prices

People must see this oil price chart (linked) and pass it on! This article documents and graphically demonstrates the obvious that no one is saying (on talk radio especially), i.e the wars and war-mongering of Bush government are the main cause of high gas prices. For oil prices to fall the neoconservative-Israeli war agenda must be stopped--period, end of argument.

clipped from www.nsnetwork.org Americans Are Paying at the Pump for the Failed Foreign Policies of the Bush Administration The War in Iraq and Saber-Rattling toward Iran is Hurting Americans at the Pump As Americans take to the road this Fourth of July they are once again in for sticker shock at the pump. Fuel costs have skyrocketed from $20 per barrel in 2002 to $80 last summer to approximately $140 today. AMERICANS PAY AT THE PUMP FOR GLOBAL INSTABILITY Rising oil prices and the world’s insecurity are linked. Rising tensions in the world’s oil producing hotspots contribute to an oil “security premium,” increasing prices by as much as 30 percent. BUSH ADMINISTRATION FOREIGN POLICY HAS RAISED TENSIONS ACROSS THE MIDDLE EAST, IMPERILING THE WORLD’S ENERGY SUPPLY The Bush Administration’s decision to invade Iraq and its failure to manage the security situation has hurt our energy security. Ceaseless confrontation with Iran has raised costly speculation about a future oil shock.

Solution? $2 Gas in 30 Days if Congress Acts

"Record oil prices are inflated by speculation and not justified by market fundamentals...Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."

Tell Congress to act on this now! Legally limiting financial speculation (oil future's trading) by government regulation would send oil prices down to levels based upon physical supply and demand they claim. One only wonders if this would overcome the devalued dollar which also drives prices up. But they should do it immediately!

The argument of these financial analysts says that the propaganda about needing increased supply is wrong and that OPEC (and even Ahmadinejad's analysis) is correct that speculation in the trading market, dollar devaluation, and geopolitical war fears are driving the price.

It would be irresponsible to delay action on this credible analysis from those in the financial markets who have expertise on speculative trading.

clipped from www.marketwatch.com Gas could fall to $2 if Congress acts, analysts say Limiting speculation would push prices to fundamental level, lawmakers told WASHINGTON (MarketWatch) -- The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday. Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135. Krapels said that it wouldn't even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets. "Record oil prices are inflated by speculation and not justified by market fundamentals," according to Gheit. "Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel."

Oil Prices Still Higher--No End in Sight

"Oil prices have risen nearly sevenfold since 2002"

--i.e. since the unjust neoconservative wars began which were hinged upon "a catalyzing event, like a new Pearl Harbor" (9/11).

Gas will likely be $4.50 per gallon by July 4th, $5.00 by Labor Day.

Note the thing they try and belittle, while attempting to blame China for rising demand, is the devaluation of the dollar which is driving the price up on the future's market:

"the weaker dollar also prompting speculative buying"

clipped from www.guardian.co.uk Oil looks set to test $139 record The price of crude oil tonight looked set to test last week's record of almost $140 a barrel after reports of falling stocks in the US prompted a fresh wave of speculative buying. The sharp increase in prices followed a report from the US government showing oil stocks had fallen for a fourth week. It coincided with reports of fresh supply problems in Nigeria and a 25% increase in oil imports in China ahead of this summer's Beijing Olympics. With the weaker dollar also prompting speculative buying, markets were braced for oil prices to test last Friday's high of $139.12, reached after an $11 surge. Oil prices have risen nearly sevenfold since 2002, driven by rising demand from China and other developing countries.

$4 per Gallon Gas Pinching Low Income Families Most--War Taxes All

$4.00 per Gallon!!

This is forcing major shifts in spending and life changes as the cost of everything goes up respective to fuel costs, not just at the pump. This is pinching Americans, especially at lower income levels, while the well off remain careless and distracted. In turn this will increase government welfare spending, and force some out of their cars completely.

All this to due dollar devaluation, due to heavy debt spending by government, printing money, to finance unjust and needless war-mongering abroad against countries that pose no threat to the U.S.. The poor suffer the most, as usual, who have the least to do with war policy, merely attempting to survive.

Stop the neocon war-mongering war policy and oil prices and consumer goods prices will fall, and poorer families will be able to sustain themselves better. Bad foreign policy effects all Americans lives and oppresses the poor the most.

Calculate for yourself the cost of war for you in gas prices:

_______ gallons per week X $2.50 (increase in gas price since 2001 when it was 1.50/gallon)
= _______ X 4.33 (wks per month) = $_________ additional monthly spending on gas since the neocon wars were started. The answer is for GAS ALONE, does not include GROCERY PRICES WHICH ARE EXTRA.

Example: If a person fills up twice per week, a 14 gallon tank, the increase is $303.10 per month versus 2001!!

clipped from jeromeprophet.blogspot.com Gasoline - The Difference A Dollar [Ed. or Two] Makes For millions of upper middle class, and upper class U.S. consumers tacking on an extra dollar per gallon to the price of gasoline is no big deal, however, to the millions of working Americans who live from paycheck to paycheck the recent increase spells for financial hardship. The Cost Of Everything Is On The Rise A one dollar increase in the price of gallon of gasoline will effectively raise the price of everything else. Food prices are already on the rise. Inflation driven by higher energy cost will increase the cost of every good, and every service. Even when products aren't made with oil the price of oil will in some way effect the cost of that product. The cost of services are also effected directly, and indirectly by the cost of oil. While upper middle class, and upper class Americans will chuckle at a one dollar increase in the price of a gallon of gasoline tens of millions of American families will be forced to find ways to survive.

Weak Dollar and Traders Behind Gas Prices, Not Supply and Demand

This article refutes a lot of talk about OPEC and such causing high oil and gas prices. It also explains higher prices on consumer goods, not just driven by fuel prices alone. The dollar is becoming as valued as the paper its printed on, which this articles does not go into is because of national indebtedness for heavy war spending, as Ron Paul pointed out during his campaigning.

Traders and speculators in the investment community are increasingly buying oil futures for their portfolios and war fears (i.e. war on terrorism, middle east war-mongering) increase price on the trade floor, period.

Stop the interventionist, rogue war policy and oil and gas prices will fall, and the dollar will strengthen as money supply is reduced.

clipped from www.iht.com A peek behind the price at the U.S. gas pump From Capitol Hill to Wall Street to the campaign trail, the recent surge in oil prices is quickly threatening to supplant the mortgage crisis as the country's leading economic issue. Last week, prices for crude set another record, finishing at $125.96 a barrel on Friday, while gasoline prices closed in on $4 a gallon. While no one disputes that China and other emerging economies are craving more crude, the stunning rise of oil from $62 a year ago is hard to explain as only a matter of supply and demand. After all, analysts have noted adequate inventories. Over the same period, the dollar has declined nearly 15 percent against the euro, and the jump in oil prices "is very much driven by the dollar," buying oil has become a way for hedge funds, pension funds and other institutional investors to offset their exposure to dollar-based assets like United States stocks and bonds Graphic Weaker dollar, higher cost » View

U.S. Ship Shoots at Iranian, Oil Price Leaps--War Policy Drives Oil Prices, not OPEC

This financial clip below marks the real reason behind gas at $3.69/gallon vs. $1.25/gallon when Bush entered office. It's not supply and demand, nor OPEC squeezing us. It is neocon (both U.S. and Israel) war-mongering in the Middle East which makes the future's traders bid up the price of oil based upon war fears alone!

That war fears drive oil prices is well documented, even by the most bias sources, like this one:

...the actual oil price patterns observed in the cases previously examined (the First Gulf War, 1990-91; the Taiwan Strait Crisis, 1996; Operation Desert Strike, 1996; Operation Desert Fox, 1998; the Libyan Operations, of 1986; the Gulf Shipping Crisis, 1987; and the Iraq-Kuwait border confrontation of October 1994) followed a fairly similar pattern. Prior to a crisis, oil futures market curves generally slope upward.

Also this from Bloomberg, as to why the financial "betters" (profit-mongers who contribute to future's inflation) on oil have been wagering it will rise to $125 per barrel, at your expense:

Tensions between Turkey and Iraq over Kurdish militants as well as over Iran's nuclear program have also helped drive oil prices higher.

Instead we hear nonsense and propaganda on talk radio (Listen here for a clip on oil and gas prices with Mike Agnello on 58 Live) that "OPEC is mostly our enemies" in the Middle East (Saudis are best friends with Bush s and D.C., and U.A.E. is as well), that our limiting supply. Not true, not true at all.

Secondly, OPEC's share of world crude production is now less than 30 percent. Iraq, an OPEC country, is producing below historical levels, not because of OPEC, but because the U.S. invaded it, without just cause.

Third, OPEC's production has been "holding" steady, not decreasing (per a bias Wall Street report), while our previous article below shows that global demand has grown only 2 percent, while U.S. demand has decreased. Therefore, the oil prices cannot be driven due to a decline or "pinch" in supply by OPEC. Recall again, that Iraq's production has declined due to U.S. invasion.

The evidence is clear, it is neocon war-mongering, principally, that began with the Bush administration--an administration uniquely stacked with oil executives--that is driving oil prices. Now Americans are paying for the economic cost of war at the pumps which is setting inflationary records on other consumer goods as well. War-mongering, against Iran, like both Democrats and Neo-republicans have been doing, since a year ago, has contributed to this increase of another dollar per gallon! Until the war policy changes, whether a Democrat or Neo-republican is in the White House, it is now forecast to double in the next four years, and prices will be to $4 per gallon on gas this summer!

SOLUTION: CHANGE THE WAR POLICY AND OIL PRICES WILL DROP.

clipped from www.marketwatch.com Oil jumps over $3 after report on U.S. shot toward Iran boat SAN FRANCISCO (MarketWatch) -- Crude-oil futures jumped more than $3 in mid-morning trading Friday after news reports that U.S. military force fired at an Iranian boat. A ship contracted by the U.S Military Sealift Command fired at least one shot toward an Iranian boat, Reuters reported, citing an unnamed U.S. defense official. More details were not yet available. Crude-oil for June delivery gained $3.04, or 2.6%, to $119.10 on the New York Mercantile Exchange after the news. Crude was trading higher before the report but was up less than $3.

High Gas Prices: China's Demand or War Policy?

OIL CONSUMPTION, U.S. vs. CHINA--THE MODEST GROWTH OF GLOBAL DEMAND

Is this source of information impartial enough? This CIA chart below, recording consumption by country, refutes the talk radio propaganda (Listen here: locally from Mike Agnello on 58 Live in Charleston, and ignorant callers) that China's demand is the cause of increased gas prices. China, despite its population, consumes about 1/3 of what the U.S. does. Bear in mind also the European Union is not a sovereign country, so if it is ignored (to compare apples with apples), it makes clear just who dominates global oil consumption, with no one else even close. From this source even the propagandists must confess that the U.S. consumes over 25% of the entire global demand!

In sources recently published through 2007, the growth of China's consumption is of course confirmed, but concludes that, globally, Oil Consumption Continues Slow Growth:

Global demand for oil reached 85.7 million barrels per day in 2007, a modest 1-percent increase over the 84.9 million barrels consumed daily in 2006.¹ (See Figure 1.) This marked the third straight year in which oil demand grew at an annual rate of less than 2 percent.² Despite the slow growth in demand, oil prices rose from just above $50 in January to near $100 at year’s end—close to the all-time inflation-adjusted price record that was reached in the early 1980s.³

The United States continued unchallenged as the world’s single largest oil-consuming nation in 2007, using almost one fourth of the global total at a rate of 20.7 million barrels daily.⁴ But U.S. oil consumption was virtually unchanged for the third year in a row, as rising oil prices discouraged demand despite three years of steady economic growth.⁵

China increased its petroleum consumption by 5.5 percent in 2007, up from 7.3 million barrels per day in 2006 to 7.7 million barrels.⁶ It now accounts for nearly 9 percent of the world’s total oil use.⁷ Over the past decade China has nearly doubled its oil consumption...

THE PRICE OF WAR PROVEN

And now consider this documented conclusion as well, from same source, noting "political instability" (i.e. war), and that Iraq oil production remains "below prewar production levels":

Political instability contributed to supply disruptions and price volatility throughout many of the world’s oil-producing regions in 2007. Iraq reached its highest level of oil production since the U.S.-led invasion in 2003, but this still remains below prewar production levels.²³ In 2007, Iraq raised its production 5 percent over the 2006 figure, with gains in the latter half of the year coinciding with the 2007 “troop surge.”²⁴ Overall, though, tensions in the Middle East remain highly charged and continue to factor heavily into world supply and price activity.

Middle east war, and fears of war, drive the volatile and emotionally driven future's market on oil prices, and disrupts and limits supply, which has sent our gas prices from 1.50 per gallon when Bush took office to 3.65 per gallon today.

Kenny Bass, joined Agnello today in some double-barreled propaganda about this, and stated, authoritatively, but based upon nothing, that "the war is an excuse" for these prices, and that "increased demand" is the cause. Boulderdash! The war is the primary leading cause, not merely an unrelated "excuse" being given, while the so-called innocent oil industry has reduced their own refining capacity, deliberately, of their own free will, while not seeking new refinery capacity, in order to increase their profits! (See previous articles under "gas prices" tag).

clipped from www.cia.gov
Rank	Country	Oil - consumption (bbl/day)	Date of Information
1	World	80,290,000	2005 est.
2	United States	20,800,000	2005 est.
3	European Union	14,580,000	2004
4	China	6,930,000	2007 est.
5	Japan	5,353,000	2005
6	Russia	2,916,000	2006
7	Germany	2,618,000	2005
8	India	2,438,000	2005 est.
9	Canada	2,290,000	2005
10	Korea, South	2,130,000	2006
11	Brazil	2,100,000	2006 est.
12	Mexico	2,078,000	2005 est.
13	Saudi Arabia	2,000,000	2005
14	France	1,999,000	2005 est.
15	United Kingdom	1,820,000	2005 est.
16	Italy	1,732,000	2005 est.
17	Iran	1,630,000	2006 est.
18	Spain	1,600,000	2005 est.
19	Indonesia	1,100,000	2006 est.
20	Netherlands	1,011,000	2006
21	Thailand