The price of oil today has now been pumped up to $75 a barrel because of fear driven news and the greed of speculators. There is propaganda talk of oil reaching $100 a barrel, so the seeds are being planted for the future, that will feed the next panic buying spree.
Any oil producing country, any oil company or any speculator can set up a commodity trading company with hard to find trails, to trade oil futures. When demand for oil gets tight or there is fear laden, negative, or bad weather news, they buy up many future months, sending prices rocketing more than normal trading.
Many other regular traders spot a trend and follow suit for they are in it to earn money. Also, high priced oil is in the interest of groups who want congress to vote -- yes, to drill for oil in conservation areas of Alaska. If oil prices stay high the chances of a yes vote is greater ...
When demand slackens off, the speculators allow the price to come down a little. But they do not let it go much lower for more than a few days. The oil market makes higher lows every time there is a bout of profit taking. It then carries on to make higher highs.
Even though supplies are still plentiful ... Even though there is never any real shortage all the time oil futures are rising ... They still are able to brazenly manipulate the price to stay higher than it should be, in a genuine demand and supply market, waiting for the next world crisis to send the price even higher.
Many times the experts say technical factors are sending the price back up, which is jargon for the words...Nobody knows why the price is rising other than blatant propaganda and lies about shortages.
Just as terrorists used American aircraft to blow up the World Trade Center. The capitalist system is being used and fabricated, by a few people with extreme need for greed, to cause a major world recession if prices are allow to continue to spiral out of control.
Free market forces are no longer in effect on the oil commodity market. It is time for governments around the world to wise up and bring in tighter laws to restrict the shameless greedy speculators from profiting from ill-gotten, propaganda gains.