You would think by now world leaders may have learned a lesson from the recent $147.00 a barrel oil bubble speculation farce? Also, it may seem financial communities would get wise to the tricks and shenanigans of the manipulative oil propaganda merchants?
No such luck, fooling the media never gets old.
The intellectual lies and deceits quickly turn into oil propaganda speculation, which in turn turns into expert commentary and then media truths.
The latest headline to hit the wire was; “Oil Consumers Wary as Some OPEC Members Target $100 Before Cairo Meeting.” The countries they quoted as saying oil will hit $100 a barrel soon, were Libya, Iran and Venezuela. Of course, we can all trust the statements that come from those origins as reliable!
Are the media that dumb to take seriously the words from oil producing counties whose leaders are sworn enemies of the USA and Western culture?
For too many years, oil and other intrinsic food commodities have been abandoned in the hands of commodity speculators, that use media propaganda and hype to cause panic and fear with statements that do not possess a truthful, sound foundation.
In truth, the world is awash with oil and there is, and will be for the foreseeable future, far more supply than demand, even with a possible economic recovery on the way.
Oil producers can quickly bring more oil on stream if the demand warrants it. Brazil has recently discovered an oil field almost as big as the Saudi Arabian oil field.
The price of a barrel of oil at the close of trading on Friday 12/24/10 was around $92.00 which perhaps is $50.00 too high.
If oil was not left at the mercy of the speculators, rather, on a supply/demand measure, the price should be around $40.00 a barrel, which was a level it touched when the recent oil bubble popped.
If demand picks up then the price could rise to a limit $70.00 but no more than that. This would stabilize world economy. Then we could view the statements coming from Iran and Venezuela with the contempt they deserve.
In conclusion, it has been proven time and time again, the commodity markets cannot be regulated or protected from media hype and sensationalism.
Manipulative, intellectual expert propaganda is the modern day speculation weapon, that can move all types of financial markets and are (in the short term) more powerful than God.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.