President Obama, under attack for rising gasoline prices, has a plan of action that called for everything and anything, but the problem is his talk does not match his actions. While I agree with him that the recent surge in gas prices are not all his fault, the truth is that it is rather disturbing what those rising prices are saying about the safety of the world. The inconsistencies in the president's rhetoric are disturbing, not to mention the inaccuracies.
The political side-show over gasoline prices would probably be funny if it was not so sad. Most politicians don’t seem to grasp what is really going on here. The spike in oil price is a warning sign that things are very dangerous in the Middle East. Obama talked about the same old tired rhetoric of drilling but what about the tired rhetoric that he and his supporters have spewed out — whether it is the release of oil from the Strategic Petroleum Reserve or blaming oil speculators for gas prices.
Congresswoman Nancy Pelosi is especially oblivious on how markets work and this myth that somehow speculators are the reason for high gas prices is a danger to the global economy. What is happening with the crude oil market is not a speculation created price but the market reflecting to the real and growing risk to crude oil supply. This is a valid fundamental reason for rising oil prices and serves an invaluable economic purpose. The market will move to ration supply and decrease demand to try to protect the economy and ensure that we will have enough oil should supply be cutoff. And it has. Already we are seeing panic buying in Europe and Asia. Europe has embargoed Iranian oil and South Korea and Japan are rumored to be preparing to do the same.
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.