This is so bang-your-head-against-the-wall Stupid with a capital S that it doesn’t deserve pithyness or particular wit in response:

The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.  Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters’ assessment at a hearing on proposed legislation to limit speculation in futures markets.
Krapels said that it wouldn’t even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets. “Record oil prices are inflated by speculation and not justified by market fundamentals,” according to Gheit. “Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel.” (emphasis mine)
I’m not an energy analyst, so feel free to correct me on this if I’m just blindingly wrong, but what little I do know suggests the main reason why speculators are betting on higher oil prices is that, simultaneously as demand has gone up in places like China and India, the US government has been gleefully pissing off, threatening and/or destroying the nations that hold enough fucking oil to influence prices!!!
To the extent that speculators have political power, fuck ’em.  At the same time, who among us plebes, from the outside, would be willing to bet on LOWER oil prices anytime soon?  Lemme get a shout count, anyone reading this who thinks the price of oil is going to go back to $60/barrel, come speak on it in the comments.
Hello?  I hear crickets…

About b-psycho

Left-libertarian blogger & occasional musician.
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One Response to Candylandonomics

  1. Mike says:

    Extraordinary craptastagoria.

    Note that these cats are testifying in favor of legislation to limit, not eliminate, this oh-so-recently-hated “speculation”. One must imagine that the law will be crafted in such a way that their masters, comfortably insulated from the new “limits”, will be chortling gleefully all the way to the bank while consumers get reamed.

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