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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: profile_14 who wrote (165822)	3/20/2012 6:21:33 PM
From: upanddown	8 Recommendations Read Replies (4) of 206209

I don't know how you can say the price of oil is a direct result of domestic monetary policy and supply and demand. Here's the problem. 90%+ of all the crude oil consumed in this country uses Brent, traded in London, as a pricing benchmark. Everything from PADD 1, PADD 3, and PADD 5 is Brent. All imports (except Canada) use Brent. Only PADD 2 and PADD 4 use WTI and producers in those PADDs are trying to somehow get around Cushing and get prices closer to Brent. The Brent traders in London don't care about statistical blips in US production. If they did, recent production gains in this country would have driven Brent downward. They care about the big factors like Iran-Israeli tensions that might close the Straits of Hormuz, Asian demand, West African violence and sabotage, OPEC internal consumption, Libya/Iraq production, the big stuff. The pace of opening federal land or issuing permits in this country is small potatoes in a global oil market. Obama is saying that there is not much a president can do about the price of gas and Gingrich with his silly $2.50 gas signs is just pandering to the crowd.

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