Some argue that record open interest and volume that far exceeds what we have seen in the past, proves that speculators are driving prices. That is not true. What it proves is that the Fed and its policies are driving investment to commodities. What it proves is that the global oil market is larger than it has ever been reflecting the billions of people in China and India and other parts in the globe that are active participants. It reflects the trillions of dollars of investment that is going to have to be made to meet growing global demand.
Speculators are assuming an ever greater amount of risk as the global economy has gone through one of the biggest shocks in history. Without their participation in the market, the global economy would have come to a halt. Remember how bleak things were when the global credit markets froze. Speculator's assumption of risk has saved millions of jobs and created more jobs and have kept millions of business's in business whether they participated in the futures markets or not. The future prices reflect the true state of the global economy and force us to face up to reality and not someone's jaded and biased view of the world.
So Mr. Obama, please don't attack and use the free markets and oil speculation as political cover for the decisions you have made that has increased the price of oil. It is time we listen to the message that the oil market is trying to send. You can't print your way to prosperity; you can't run budget deficits forever. You need to take advantage of our own abundant natural resources. We can't build an economy on inefficient wind and solar energy and other fuel sources that may never actually work on a grand scale. Don't kill the messenger because if you listen, the messenger will give you the answer! Free markets for free people and God Bless America! Happy Easter!
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.