These guys are playing a role in the global market. They are not happy that their government is not going to subsidize their fuel costs anymore You see in many Asian countries that’s exactly what’s been going on. To forestall ‘unrest’ the governments have been spending massive amounts to keep fuel prices in their countries down. But….now running out of the ability to do this, out of money they are, the price off fuel is rising so…the demand is falling.
These guys are pissed but this might mean, might, that our costs will fall somewhat due to the lack of demand.
Read more about this and a lot more on the ‘oil crisis’ at Robert Oak’s blog where guest blogger New Deal Democrat starts his post off with a bang:
‘I was in the midst of writing a diary about how there aren’t "2 Americas", a la John Edwards, but 3, when it became clear that so much information has become available this week concerning the forces affecting Americans’ demand for oil, that it demanded its own diary. Even if the world has reached the plateau of "Peak Oil" and supplies will gradually be rationed at higher and higher prices, there are going to be booms and busts along the way. I’m here to tell you that the evidence suggests that there has been a speculative boom in the last 6-9 months and we may shortly see a bust, echoing the sudden decline of oil from $80 to $55 a barrel just before the 2006 elections. The boom and the bust, if it happens, have everything to do with (1) Subsidies to gas consumption by Asian governments, (2) hoarding (in tanker ships), and (3) unintended consequences of the Fed’s bailing out billionaires, that have added about $1 to every single gallon of gas you buy.‘
Whoa, I don’t believe I read that part about you an me subsidizing the Bear Stearns bailout to the tune of $1 per gallon in the SF Chronicle. But then I wouldn’t would I. It’s all about how Barry is gonna be Pres. Great, follow that Kabuki there but if you want a head’s up on what’s coming:
This is the place to come.