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Obama Makes no Attempt to Curb High Oil Prices after Elections

By Dian L. Chu | Wed, 06 February 2013 23:11 | 2

I guess the SPR Threat was politically motivated

When Oil and Gas prices were last at these levels President Obama utilized the threat of releasing the SPRs to put a lid on the rampant speculation in the oil markets. And yes with oil inventories at record levels here in the US, there is rampant speculation in the oil markets once again. The oil market is being pegged right alongside the S&P 500 almost tick for tick, regardless of overflowing supplies at Cushing, or large weekly builds in total US stocks.

No more elections to campaign for

President Obama and his advisors know this correlation by now, and they have fought this nasty correlation for consumers at the pump, with releasing or the threat to release the SPRs which sends the market in the other direction as oil can drop $20 on any release.

At the time of the last threat critics said that the president was politically motivated in utilizing the SPR release to manage oil and gas prices lower before the election so that high gas prices wouldn`t become a central voting issue, and hurt his chances of being re-elected.

US Crude Oil Stocks 3

High Level Politicians only care about Votes

Well, given that the last time prices reached $95 a barrel the Whitehouse started talking up the SPR release idea only six months ago, and oil prices have been over $98 a barrel for WTI and gas prices are higher than they ever have been for this time of year and set to go higher, and we haven`t heard a single mention of the SPRs?  It is obvious that once elected Obama has conveniently forgotten about consumers’ pain at the pump due to rampant oil speculation.

Related article: How High Oil Prices Lead to Recession

Gas Prices Continue to climb with S&P 500

Gas prices are set to jump as gasoline futures for April are 16 cents higher than the March contract, so consumers are going to be in for a shock at the pump if this pace continues. I would hate to see where gas prices will be if Bernanke infused liquidity sends the S&P 500 to 1650?

US Gasoline Stocks 3

Good thing we don`t have a robust economy!

I guess it is a good thing that Iran came back to the negotiating table, and we are overflowing with supplies right now in the United States. I would hate to see where oil and gas prices would be if we actually had a threat to supplies in the Middle East, or a tight oil market from a supply standpoint.

US Gasoline Demand 4

How high would Gas prices be without Saudi America?

Related article: Ten Reasons Why High Oil Prices are a Problem

Gee, I guess we are so lucky the US is producing 7 million barrels per day, the best in over 20 years. Furthermore, we would really be in trouble if US GDP was over 2%! How about if unemployment was below 7% or banks were actually lending to small businesses? How about if the economy actually provided an abundance of jobs for college graduates so they could pay off their student loans? In short, the economic fundamentals matched the glorified stock prices! How high would gas prices be then?

US Crude Oil Domestic Production 4

Too bad for Consumers, Obama has forgotten all about your pain at the pump!

What a joke markets have become, how out of whack they are with regard to the underlying fundamentals of the global economy. Moreover, president Obama has shown his true colors regarding oil and gas speculation, as long as he gets elected, he doesn`t really care!

By. Dian Chu

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  • lesmcfalls on February 07 2013 said:
    And don't forget that under his plan electricity prices are neccesarily skyrocketing. Too bad more people didn't take him at his word.
  • bmz on February 07 2013 said:
    If, as you show, prices are unrelated to supply/demand, why would more supply reduce prices? I agree with you that the market is being rigged; but you have not supported the efficacy of you prescription.

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