From FBI's most wanted poster
Many contrary actions at work means a tipping point has been reached. American housing is 100% oil dependent. Or one should say, cheap energy dependent. The price of these energy intensive houses are going up and up at a mad rate. Meanwhile, the cost of energy is going up and up just as fast. These two forces are contrary to each other...in the long run. One of them has to give and the betting is, it ain't the oil.
From the BBC news:
Crude oil prices rose to a new high of more than $59 a barrel on Monday as the market was disturbed by threats to western consulates in Nigeria.Not to mention the trade deficit which hit a record high this last month and threatens to be $800 billion this year, an amazing amount. Unsustainable.
US light crude hit $58.82 a barrel in European electronic trading, off a peak of $59.18 in earlier Asian trade while Brent crude hit a new high of $58.58.
Oil prices have risen more than 30% this year, prompting Opec to increase output by 500,000 barrels last week.
The latest spike came after the United States, Germany and UK closed their consulates in Lagos, Nigeria's largest city, after threats from Islamic militants.The head of the CIA is in the news today because he claims he knows were bin Laden is hiding. Geeze, we really no longer need to know, al Qaeda is kicking ass all over the place and has a very receptive audience thanks to our monsterous war in Iraq.
The closures followed last week's kidnapping of six Shell oil workers in Nigeria, who were released on Saturday. Nigeria is the world's eighth largest oil producer and a key supply source for the United States.
Opec sought to relieve the pressure on prices last week by lifting its daily production quotas by 500,000 barrels to 28 million barrels a day. The oil producers organisation also pledged a further similar rise if prices remained at their current level.It is nice that the media is finally pointing out that OPEC's promises to increase pumping are fake? The Saudis know they don't have to do anything except talk and talk is cheap. So they keep telling Americans that they are increasing oil pumping even though the pumping is going full blast. Why do they lie? Simple.
However, experts have questioned whether Opec's actions will have any impact because its members have already unofficially exceeded the threshold, pumping close to 30 million barrels a day.
They want us to not change a thing. Both they and their co-conspiritors, Bush and the Texas oil barons, want to keep this con game going as long as possible. Every month, they hold out the fantasy that oil will be cheap again and then laugh at Americans who keep on trucking. Of course, this is getting stale and other parties are getting rather antsy about it all, namely all those GOP contributors who are not in the oil/energy business. So the truth is leaking out. This is ongoing in Europe, too, for example:
(from the BBC) Shares in Regal tumbled 16% on Monday after it said that Frank Timis gave Hong Kong firm Peak Resources the right to buy a Jersey-registered subsidiary.Aren't the Chinese cute? Naming their company "Peak Resources." Obviously, they are, as I keep saying, quite aware about all the things our country tries to paper over. Just like with currency matters, they know we set up a system that forces all other nations to save like crazy and buy American bonds thus allowing us to run up trillions in debt very rapidly, sucking the world dry of all savings, forcing populations to live like paupers so we can pig out. They also know the underbelly of this beast is when a major debt buying nation suddenly not only stops buying debt but discharges the debts held by them, thus crashing the American system and this knowledge gives them great power.
The board of directors said it had no idea that Mr Timis had entered into a 'call-option' agreement with Peak.
Regal's Jersey division owns the rights to oil production in the Ukraine.
Regal said it is currently "investigating the circumstances surrounding the agreement and is seeking legal and other advice".Heh. Seems someone is twisting arms here. The company made the agreement and now other parties want some method of breaking it. In a few years, governments will either be run by oil companies like it is in the USA or will try to take over the oil companies like Saddam tried and failed to do in Iraq.
"The remainder of the board was not previously aware of the existence of the agreement and had not authorised or approved the entering into of the agreement with Peak Resources," the company said in its statement.
Financial "advisors" in America still pretend to not understand, unless this cluelessness is real!!!--
Lee Elliot, a broker at Man Financial, said oil prices were "ridiculous" at current levels, with speculators behind the gains. He said he could see technical momentum pushing crude up to $60 a barrel in the short term, but feels this may not last.Wasn't last week's propaganda all about how prices were going to drop to below $40 a barrel? And Bush said we didn't have to worry? Remember last month's Gannon moment in Waco with Bush literally kissing and holding hands, smooching over oil prices and Bush told us that his tops, the 8"cut Saudi was going to save our lifestyle and give us cheap oil?
"The front-end of the market is well oversupplied," he said, adding the price was "unrepresentative" of the amount of oil out there.
Elliot said the price went up after the meeting of the Organization of Petroleum Exporting Countries in March, when it became clear that they could not bring down the price of oil through higher quotas, though crude has fallen about $10 a barrel over the last few months.
"After last week's OPEC meeting, crude oil has risen again," Elliot said. "Maybe a pattern is forming."
Elliot said there could be another significant drop in the price of oil as the market's supply concerns are eased. With $60 a barrel in sight, he said a $10 drop in crude to near the $50 mark seemed reasonable.
The secret dream of Americans is to reduce oil prices now by reducing demand....in other countries. We are the oil hogs of the planet, using more per capita than anyone and using much more than the closest competitors, per capita. If China were to consume oil at our rate, all the world oil would be used up in less than five years. Yet we keep on consuming at this unsustainable rate, it will take us less than 20 years to use it all up. Nonetheless, we insist on building fuel intensive houses that require long commutes and are huge in size.
These contrary forces are about to have a Titanic clash.