Response to senators' call for gas price investigation

The letter goes on to say that, "At a time when major refiners and oil companies are making record profits and American families continue to struggle with gasoline at record prices, the idea that refiners may be manipulating the market to keep prices artificially high goes beyond reproach. It is incumbent upon the Commission to ensure that the American people are protected from this type of manipulation."

Well I think it is beyond reproach to make false accusations against the oil industry for purely political purposes when even a cursory examination of the facts makes it clear that these accusations are unfounded, unjustified and patently false. So what is the motivation for the Democrats to investigate big oil or speculators or refiners? Is it because of their failed policies on energy or on the economy in general? Is it because their big donors are green energy companies? Does it bother them that the answer to our nation's energy woes and the problem of reliance on foreign sources of fuel has been solved by the ingenuity of the oil companies and not by some wind farm maker? Are they a bit embarrassed that they are not embracing the greatest technological achievement in over a century with shale production opening up massive amounts of domestic energy in our own country that has created and will create good high paying jobs? Do they hate the success that the oil companies have had making profits on the billions of dollars they have risked to bring energy to our shores and maintain our way of life, the envy of the world?

I thought the more you risk, the more you should be rewarded. It should also give you the incentive to produce more and continue to invest the billions of dollars it's going to take to meet US energy demand. The millions of jobs that are going to be created as a successful business expands. Oh yes, I forgot, success is bad. Well at least the good news is the Senate voted down a vote to repeal $21 billion in so called tax breaks. Some Senate Democrats broke with Senate leaders, realizing the tax is unfair and would increase oil and gas prices and not reduce them.

People want to know what I think about Iranian President Mahmoud Ahmadinejad taking a more active interest in the Iranian oil industry and temporality taking control and reports that he will attend the next OPEC meeting. I think that Ayatollah Ali Khamenei is tired of the guy and will do anything to get him out of town for a while so he can have a break. The meeting of course is going to be more interesting as tensions between the Saudis, who run the cartel, and the Iranians are running high. Get ready for fireworks and some great quotes!

Bad data on housing, industrial production and Redbook sales, all brought oil down yesterday but options expiration and that seemed to bring us back up. Oil is following through today on comments that the IMF is happy with Greece's progress! The Euro rebound should give us a bounce!

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 pflynn@pfgbest.com.

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About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


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