Friday :: Jun 6, 2008

Good Times

by Turkana

At the end of last month, the Washington Post reported:

During continued volatility in oil prices, federal regulators said yesterday that they had been investigating crude oil trading, storage and transportation for the past six months with a focus on possible "futures market manipulation."

The Commodity Futures Trading Commission, which normally keeps investigations confidential, said in a statement that it was "taking the extraordinary step of disclosing this investigation because of today's unprecedented market conditions."

Those conditions have sent oil prices to record heights, adding to the U.S. trade deficit, hurting consumers and companies, and weighing heavily on the nation's economy.

They might want to ramp it up. Congress also might want to get involved. From today's New York Times:

Oil prices had their biggest gains ever on Friday, jumping nearly $11 to a new record above $138 a barrel, after a senior Israeli politician raised the specter of an attack on Iran and the dollar fell sharply against the euro.

The unprecedented gains on Friday capped a second day of strong gains on energy markets, and fueled suspicions that commodities might be caught in a speculative bubble.

Oil futures surged $10.75, or 8 percent, to $138.54 a barrel on the New York Mercantile Exchange. The record gain followed a jump of 5.5 percent on Thursday, bringing total two-day gains to $16 a barrel.

Stocks fell sharply. The Dow Jones industrials fell 323.97 points, or 2.53 percent, in midday trading. Chevron Corp. was the only stock that rose on the blue-chip index.

Some people actually will miss the Bush Administration. Then again, if McCain is elected, they won't have to.

Turkana :: 12:34 PM :: Comments (16) :: Digg It!