Here they go again !!

[kentuck]

http://www.mcclatchydc.com/2010/04/01/91487/whats-driving-up-oil-prices-again.html

<snip>

WASHINGTON — Oil consumption has fallen, demand from U.S. motorists for gasoline is flat at best and refiners that turn crude into fuel are operating well below capacity. Yet oil prices keep marching toward $90 a barrel, pushing gasoline toward $3 a gallon in many markets, and prompting American drivers to ask, "What gives?"

Blame it on the same folks who brought you $140 oil and $4 gasoline in 2008: Wall Street speculators.

Experts attribute much of the recent rise in prices to flows of speculative money into oil markets. These bets are fueled by investor expectations that the U.S. and global economies are poised to return to growth and thus spark increased use of oil. Strong growth in China supports the narrative of rising oil consumption and tightening supplies.

"The thinking goes that rising stock (market) prices implies expanding business activity, implies growing energy demand, implies rising oil prices. I think you can make that case, but it's awfully weak," said Michael Fitzpatrick, vice president-energy for MF Global, a financial firm that brokers the sale of contracts for future delivery of oil.

.........more

[DJ13]

1. And what happened the last time the speculators went into oil?

The entire economy crashed.

The speculators are like a parasite that kills its host.

[kentuck]

2. You're absolutely right !

While Congress sleeps, Wall Street creeps back into their pithy darkness...

[RufusTFirefly]

3. And here's the beauty of it...

Areas like mine, which provide wonderful alternatives to single passenger vehicle transport, are feeling the squeeze:

With all its revenue streams diminishing, Caltrain may be forced to cease operations

Caltrain (the Bay Area's commuter railroad line) has gone broke and will likely need to wipe out half its service — including weekend, weeknight and midday trains — officials said Thursday.

Net result: More people on the road paying outrageous prices for fuel.

I've gotta admit these guys are good. It must be wonderful to have no conscience.