Tuesday, June 16, 2009

Obama and Oil Prices

http://money.cnn.com/2009/06/16/news/derivatives.oil.fortune/index.htm?postversion=2009061617

Of course, fluctuating oil prices are a topic that interest many of us. This article explains why they may be rising when politicians are trying to fix the hurting economy.

2 comments:

  1. From the article:
    "But this year's surge in the price of oil is turning Washington's attention back to another derivatives debate: whether speculation in the futures markets is responsible for wild swings in the prices for crude oil and other commodities."

    I think that has been made pretty much clear.

    The concept of supply and demand has not applied to crude oil in quite a long time. Speculation, the greed of OPEC, and a weakened dollar were the cause of last summer's surge.

    OPEC continually tries to artificially create demand for oil by tinkering with production output.

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  2. The goverment is putting so much effort into fixing the struggling economy. It seems controdicting to not have oil prices more regulated. False demands for oil driving up oil prices will only impead the economic recovery.

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