Oil Notes

Tuesday, November 20, 2007

Oil closed today at $98.36, an all time high and an all time record daily price increase, a mere $1.64 short of the $100 mark. This was not, repeat, NOT based on any news of shut downs, wars, terrorists or other disruptions of supply. Instead, we can thank our government for its pathetic mismanagement of our money as the U.S. dollar hits an all time low. This is the crux of the soaring price of oil.

Meanwhile, at the OPEC meeting in Riyadh, oil ministers declined to even discuss raising production and blamed “speculation” for the record high prices. I tend to think they’re right, as more and more “investors” such as the likes of California Public Employees Retirement System, hedge funds, investment banks and numerous other “funds” seek security in the flight out of the derivatives fiasco created by Wall Street Banks. CALPERS today announced a $500 million investment in oil.

Yes, it is “speculators” driving up oil, but many of the speculators are 401k’s, various funds that are retirement programs of your friends and neighbors that are doing it. And perhaps, even you? Do you know where your retirement funds are invested?