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Will Big Oil and Oil Speculators Take the Enron Fall? Or will they continue to get away with highway robbery?

An Article from Greentech Media

Will Big Oil and Oil Speculators Take the Enron Fall?
Or will they continue to get away with highway robbery?

By: Herman K. Trabish
April 29, 2011

With a barrel of oil now above $112 and rising, the five major oil companies are announcing Q1 2011 numbers this week and reports put profits at 40 percent above Q1 2010, despite a slowing of the economy.

Commentators from Saudi oil barons to Goldman Sachs to the AARP agree, according to Professor of Law Michael Greenberger, a former director of the Division of Trading and Markets, Commodity Futures and Trading Commission (CFTC), that oil market speculation is sending a false demand signal to the market, driving the per-barrel price far beyond the supply-demand-driven $75-to-$85 range and wreaking havoc with gasoline’s per-gallon price, as well.

It is putting a $40 premium on every barrel the oil companies sell and, according to Daniel J. Weiss, Senior Fellow and Director of Climate Strategy at the Center for American Progress (CAP), one-half to two-thirds of that premium is likely being reinvested in oil company stock, driving the stock price up and enriching shareholders, executives and the board in a classic case of the-rich-get-richer.

Click here to read the article

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