In the Straits Times report yesterday 24 Jul 08, within the
business section, you would have read a report from the US task
force on going investigation on the oil price hike. If you are the
discerning type, you would have glean some supporting facts on
Iran's manipulation of oil prices.
1. Oil
demand.
According to the task force, oil demand grew only 3.9% last
year. Now, how do you explain oil price skyrocket to est 220%
(US147/b) from avg of US65/b?
2. Speculators are
selling rather than buying
If the speculators are selling more than buying, then why did
the price of oil rose from $65 to $147 within a few short
months?
3. US$250billion, NOT
million, in commodity futures market.
According to the commissioner of Commodity Futures Trading
Commission, there was a presence of $250 billion that was not there
just a few years ago. Where did these money came from?
4. Oil
supply
The task force claims that 'sluggish' output resulted to demands
for oil not met. However, Opec, through its chairman, Saudi
Arabia, had continuously wanted to raise output, but one
member rejected, not once, but several times.
I had asked the questions, you think about it. If you want my
answers, there are:-
1. It is utter
nonsense that demand for oil at only 3.9% will result in a 220%
price increase. Such actions smack of market speculation. Consumer
demand may had increased, but a consumer have only so many hours to
play with his toys.
a.)Simple Example, factory A produces cathode ray tube tv and
requires 1000 barrels of oil to manufacture last year. Factory
B produces flat screen TV and requires 1000 barrels of oil to
produce this year. Total it seems that 2000 barrels of oil demand
is present today. But such logic is flawed, because the consumer
would had bought flat screen and the CRT TV would had gone
bust.
Thus there was still only 1000 barrels of oil required! There is
such thing as consumer demand, but such demand replaces obsolete
technologies making them close shop, and thus no oil required for
them.
b.) Claims that there more people being affluent, eg, China, but
the fact is that there are many more being pushed into penury.
c.) Claims that there are more births, but there are also human
mortalities.
So how much is 'consumer demand' at fault?
2. Self
explanatory
3. Speculators
do not have such funds to play oil futures as shown in my previous
posts. Hedge funds do not have so many billions to play with, nor
do they stake their entire funds into commodities, the most
riskiest of all stocks to play! SWF are even worse, for they answer
to the electorate and will play small sums. So who is left? Every
country needs oil and would be stupid to run up the price of oil.
Only Iran ( whom answers to nobody except their absent
God) has the motive and capability to inject the market with
BILLIONS!
4. The members
who reject calls for output are none other than Iran and his silly
sidekick Venuezela.
I am aware that the truth is uncomfortable. I too wish all these
are not true. But we cannot live in denial. Its ok if we alone
suffer, but we, whom are humans with emotions, cannot, will not,
and must not turn a blind eye to others who are living in misery
and suffering over the high price of oil and the effect of
starvation caused by it.
Help tell others about the atrocity caused by Iran. And should
oil price continue to rise above $65/b, the only solution left is
War. I stand ready to fight on your behalf with a legally
authorised military expedition to fight for our rights to live as a
human and not as dogs to Iran!