{"id":5977,"date":"2015-02-28T14:02:36","date_gmt":"2015-02-28T22:02:36","guid":{"rendered":"http:\/\/lessgovisthebestgov.com\/blog\/?p=5977"},"modified":"2015-03-04T22:02:11","modified_gmt":"2015-03-05T06:02:11","slug":"what-explains-the-current-volatility-in-the-oil-and-gas-markets-why-is-the-price-of-gasoline-going-back-up-again","status":"publish","type":"post","link":"https:\/\/lessgovisthebestgov.com\/blog\/what-explains-the-current-volatility-in-the-oil-and-gas-markets-why-is-the-price-of-gasoline-going-back-up-again\/","title":{"rendered":"What Explains the Current Volatility in the Oil and Gas Markets? Why is the Price of Gasoline Going Back Up Again?"},"content":{"rendered":"

\"gas<\/a>\u00a0\u00a0<\/h1>\n

Riding a Rollercoaster of\u00a0Rising and Falling Gasoline Prices <\/strong><\/h1>\n

At the Price-Point of a Barrel of American Shale Oil<\/strong><\/h1>\n

\u00a0by Scott Rohter<\/p>\n

\u00a0<\/p>\n

Just\u00a0a couple of\u00a0weeks ago the price of a barrel of crude oil was under fifty dollars and the cost of a gallon of gasoline had dropped to less than two dollars for the first time in almost six years. It took only\u00a0three months for the price of gasoline to fall from over four dollars a gallon to\u00a0under two dollars a gallon all across America. But now in a matter of only two short weeks the price of gasoline has risen back up to almost three dollars a gallon again !\u00a0 What can explain this wild fluctuation in the price of oil and gas and why is the\u00a0petroleum market so\u00a0unstable\u00a0right now?<\/p>\n

There is only one thing in my opinion that can\u00a0account for\u00a0the current volatility in oil prices. If you read my last article on the rapidly falling price of gasoline then you know\u00a0I\u00a0said\u00a0that the\u00a0Islamic State was responsible for the\u00a0declining prices. The downward trend\u00a0in the price of gasoline began right about the same time that ISIS took\u00a0control of\u00a0the\u00a0Iraqi oil fields\u00a0near the city of Mosul in northern Iraq.<\/p>\n

\"OPEC<\/a>In order to finance their Sunni led Islamic revolution in the Middle East ISIS was selling their newly acquired Iraqi oil\u00a0on the Black Market the only way they could\u2026 cheap. Not being a member of\u00a0OPEC that is the only way they can sell there oil,\u00a0but rather than\u00a0allow ISIS to derive any profits from the sale of their newly confiscated Iraqi oil reserves Saudi Arabia was matching the price that ISIS was charging on the Black Market. All of the other members of OPEC were simply going along for the ride with\u00a0Saudi Arabia and the Saudis were hoping to starve their Sunni rivals in\u00a0control of ISIS of\u00a0the money and the \u00a0support they need to finance their Islamic caliphate. Now all of a sudden the price of oil and gas is going back up again. It is not just going up. It is rising rapidly like there is no tomorrow.\u00a0 So why the mad rush? Why is everybody in such a big hurry to raise the price of oil and gas\u00a0again? What is causing this rapid increase in prices? In a word it is\u00a0greed.<\/p>\n

The reason everybody is in such a\u00a0big hurry\u00a0to raise the price of oil\u00a0again is that those lower prices\u00a0were\u00a0hurting the economies of many oil producing nations, not just Russia. It\u00a0was damaging the Saudi Arabian economy and it\u00a0was damaging certain sectors of our own economy. But that was the\u00a0goal,\u00a0to hurt our economy in order to\u00a0obtain a very important concession from America.\u00a0They weren’t trying to prevent us from developing our own domestic shale oil reserves.\u00a0\u00a0If that was the case\u00a0they would have dropped the price of oil many years ago before the fracking revolution in the oil industry actually took off, but they didn’t do that. Instead they were trying\u00a0to extract a promise from President Obama.<\/p>\n

No oil producing country or combination of oil producing countries and no chairman of the board of directors of any major American oil company\u00a0would voluntarily agree to reduce their prices or profits so low\u00a0that it would hurt their bottom line\u00a0like they have been doing for the past three months\u00a0unless there was\u00a0a very good reason.\u00a0The price or oil had\u00a0dropped so low that it wasn’t even profitable to frack for oil.\u00a0 In order for fracking to be economically viable the price of a barrel of crude oil has to be somewhere around ninety dollars, but it\u00a0had fallen to below fifty dollars a barrel. Of course there was a very good reason why the Saudis dropped the price of oil so low.\u00a0There\u00a0is something very unusual going on in the oil business right now that defies logic\u00a0which has not been reported at all in the mainstream media. I believe that the price of oil was\u00a0deliberately being\u00a0manipulated downward by the Saudis reluctantly \u00a0in order to achieve some up until now\u00a0inexplicable goal that the press and our government is\u00a0not\u00a0telling us about.<\/p>\n

I have speculated that the Saudi Royal Family\u00a0views ISIS as an existential threat. That is why they were willing to drop the price of\u00a0crude oil on\u00a0the international market, not because they wanted to reduce their profits, but because they want to remain in power and they want to stay alive. They have been trying to stop the flow of money to\u00a0ISIS revolutionaries in the Middle East so that their own heads don\u2019t wind up on a pole in\u00a0the center of downtown Riyadh. But now the price of oil is starting to go back up again and Saudi Arabia does not feel the need to keep the price of oil low anymore in order to compete with ISIS on the Black Market. So what has dramatically changed in\u00a0the past two weeks to alter the Saudi\u00a0perspective? Let me speculate for you.<\/p>\n

Perhaps the Saudis\u00a0have cut some kind of a secret deal with ISIS so that they don\u2019t have to fear for their lives in the event of the rise of a future Islamic State… or maybe ISIS\u00a0might be having a hard time selling their confiscated Iraqi\u00a0oil reserves on the Black Market right now… or more\u00a0than likely\u00a0it\u00a0is a little piece of information that barely got mentioned in the news last week. The Obama Administration has just committed the United States military to sending\u00a0American\u00a0ground forces\u00a0back to Iraq in the spring to help its Shiite led government recapture the northern Iraqi city of Mosul and the oil fields that are currently under ISIS control. That is not mere speculation on my part.\u00a0It is a fact and it\u00a0helps explain why the Saudis feel safe now\u00a0to raise the price of oil once again. They got the promise they wanted from the Obama Administration which was extracted at the price point of a barrel of\u00a0shale oil.<\/p>\n

If you enjoyed reading my commentary please let me know by clicking the LIKE Button below and sign up for my Free RSS Newsfeed located at the top and bottom of this page.<\/p>\n

Selected Reading<\/strong><\/p>\n

https:\/\/lessgovisthebestgov.com\/blog\/when-is-the-price-of-oil-and-gas-going-to-stop-coming-down-isis-knows.html<\/a><\/p>\n

https:\/\/lessgovisthebestgov.com\/blog\/a-perfect-example-of-why-you-just-cant-trust-the-mainstream-media-anymore-why-is-the-price-of-gasoline-really-going-down-at-the-pump.html<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

<\/div>","protected":false},"excerpt":{"rendered":"\"\"

Just two weeks ago the price of a barrel of crude oil was under fifty dollars and the cost of a gallon of gasoline had dropped to less than two dollars. It took only a few months for the price of gasoline to fall from over four dollars a gallon to just under two dollars a gallon all across America. Now in a matter of only two short weeks the price of gasoline has risen back up to almost three dollars a gallon again. What could possibly account for this wild fluctuation in the price of oil and gas and why is the market so volatile right now?…<\/p>\n","protected":false},"author":3,"featured_media":4875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,20],"tags":[605,604,607,603,606],"_links":{"self":[{"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/posts\/5977"}],"collection":[{"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/comments?post=5977"}],"version-history":[{"count":55,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/posts\/5977\/revisions"}],"predecessor-version":[{"id":6032,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/posts\/5977\/revisions\/6032"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/media\/4875"}],"wp:attachment":[{"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/media?parent=5977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/categories?post=5977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lessgovisthebestgov.com\/blog\/wp-json\/wp\/v2\/tags?post=5977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}