Oil prices rose at 9.24% manipulated by speculators on Wall Street

 Sahit Muja

Sahit Muja: Oil prices rose at 9.24% manipulated by speculators on Wall Street.

 Oil was outperforming other commodities today.The economy in China, India, Brazil, European Union, U.S, Japan is not growing as much as hoped. Why have the oil prices dramatically increased to 9.24 per cent today while the global consumption has decreased?. The oil prices are manipulated by speculators on the Wall Street. The International Monetary Fund (IMF) lowered its global economic growth outlook to 3.5 percent from the previous 4.0 percent recently.

 We've seen one excuse after another on skyrocketing oil prices.
Saudi Arabia has the world's cheapest cost for oil extraction, the costs of extraction is an average $3 a barrel. The global oil extraction can cost an average $10 a barrel to pump.
In Venezuela, Azerbaijan and Iraq the cost to pump the oil is about $5 a barrel. Why oil prices rose sharply today ?

The speculation is the main factor on skyrocketing oil prices.
The price of oil has been increasing from an average $45 a barrel when President Obama took office to $84.87 today.

Why have the oil prices dramatically increased while the consumption has decreased on the world tow major economies the U.S and EU which represent more than 50 percent of worlds GDP about $30 trillion dollars? Speculation, Speculation and Speculation.

The oil companies, banks and financial institutions must love President Obama's energy policy the euro-zone crisis the unrest in Arab countries and the problems with Iran.
Speculation, this is where the real money is made .The ownership of oil cargo changes hands many times on-route.The increase in the price of fuel have a multiply-er effect in all the world's economies.

The global food prices are at the highest level and are increasing every day.
High oil prices are effecting everything, rising the costs of raw materials, minerals and goods at every stage.
Rising fuel costs therefore raises inflation exponentially. Farmers need to pay more to transport their goods to the markets.They therefore charge higher prices. Increasing the price of oil will do no good deed to the world.

Running out of Oil? No!, No. The world has so much oil, natural gas, coal feared running out of it is not valid.
In recent years thanks to new technologies, such as three-dimensional seismic imaging, horizontal drilling and the ability to drill in ever-greater water depths, the oil and natural gas industry has so far managed to raise its output .

A $50 for barrel of oil is a fair price, oil extraction can cost an average $10 a barrel to pump.

Sahit Muja
President and CEO
Albanian Minerals
New York