“Are you ready to pay four, five or possibly even six dollars for a gallon of gasoline? War has consequences, and a conflict with Syria has the potential to escalate wildly out of control very rapidly. The Obama administration is pledging that the upcoming attack on Syria will be “brief and limited” and that the steady flow of oil out of the Middle East will not be interrupted. But what happens if Syria strikes back? What happens if Syrian missiles start raining down on Tel Aviv? What happens if Hezbollah or Iran starts attacking U.S. or Israeli targets? Unless Syria, Hezbollah and Iran all stand down and refuse to fight back, we could very easily be looking at a major regional war in the Middle East, and that could cause the price of oil to explode higher. Syria is not a major oil producer, but approximately a third of all of the crude oil in the world is produced in the Middle East. If the Suez Canal or the Persian Gulf (or both) get shut down for an extended period of time, the consequences would be dramatic. The price of oil has already risen about 15% so far this summer, and war in the Middle East could potentially send it soaring into record territory.”
“If Bernanke is looking for inflation under every rock and cranny, he may have just found it in today’s PPI, if only in its energy components. While the headline June number was expected to jump sequentially by 0.5%, the same as May, the final print came at 0.8%, or 2.5% on a Y/Y basis – the highest since March 2012 – driven entirely by Energy good prices, which soared by 2.9% sequentially, the most since February’s 3.2%. Foods PPI jumped by a more manageable 0.2%, although no matter how, it is inevitable that producers will now pass both of these to consumers whose purchasing power, especially at the gas pump, is about to be severely tested especially with fuel prices now once again rising at the fastest pace in months. “
Via Zero Hedge
Wannabe dictator obama to use executive powers to further destroy manufacturing in US in name of “fighting climate change”
What to Expect from the President’s Big Climate Change Speech
“On Tuesday, President Obama will use a speech at the University of Georgetown to announce new, sweeping executive orders addressing climate change that will be designed to appease critics who have attacked the President for talking the green talk and not walking the green walk. Obviously, the White House is also hoping tackling climate change will get them some decent press in the wake of that pesky surveillance scandal. “
“The theory of Petrodollar Warfare can be attributed to US analyst and author William R Clarke, and his 2005 book of that title which interpreted the US-UK decision to invade Iraq in 2003. He called this an “oil currency war”, but the concept of the petrodollar system and petrodollar recyling dates back to the eve of the first Oil Shock in 1973-1974. The role of the petrodollar system as a driving force of US foreign policy is explained by analysts and historians as basic to maintaining the dollar’s status as the world’s dominant reserve currency – and the currency in which oil is priced.
The term “petrodollar warfare” as used by William R. Clark says that major international war, legal or not, was seen as justified to protect the petrodollar system. Over and above the loss of human life, the combined costs of the Afghan and Iraq wars for the US are controversial like the interpretation of these wars as “oil wars”, but analysts like Joseph Stiglitz and Linda Bilmes put the total combined war cost at above $4 trillion. This can be compared with – and totally dwarfs – the annual cost of US oil imports, which are now sharply declining on a year-in year-out basis as domestic shale oil output ramps up, and US oil demand stagnates.
Clarke’s theory, like the explanation of the role and power of the “petrodollar system” depends on two basic drivers. Most major developed countries rely on oil imports, which are purchased using dollars, so they are forced to hold large stockpiles of dollars in order to continue importing oil. In turn this also creates consistent demand for dollars, and prevents the dollar from losing its relative international monetary value, regardless of what happens to the US economy.”
Via Zero Hedge
“Each time the Fed’s balance sheet is expanded, gas prices at the pump surge… strange coincidence or entirely to be expected consequence of flooding the world with newly printed money. Dear Senate, please ask Bernanke to explain this… on Humphrey-Hawkins Report days, gas prices have only been higher once – right before the entire financial market collapsed.”
Via Zero Hedge
“Is the U.S. economy about to experience a major downturn? Unfortunately, there are a whole bunch of signs that economic activity in the United States is really slowing down right now. Freight volumes and freight expenditures are way down, consumer confidence has declined sharply, major retail chains all over America are closing hundreds of stores, and the “sequester” threatens to give the American people their first significant opportunity to experience what “austerity” tastes like. Gas prices are going up rapidly, corporate insiders are dumping massive amounts of stock and there are high profile corporate bankruptcies in the news almost every single day now. In many ways, what we are going through right now feels very similar to 2008 before the crash happened. Back then the warning signs of economic trouble were very obvious, but our politicians and the mainstream media insisted that everything was just fine, and the stock market was very much detached from reality. When the stock market did finally catch up with reality, it happened very, very rapidly. Sadly, most people do not appear to have learned any lessons from the crisis of 2008. Americans continue to rack up staggering amounts of debt, and Wall Street is more reckless than ever. As a society, we seem to have concluded that 2008 was just a temporary malfunction rather than an indication that our entire system was fundamentally flawed. In the end, we will pay a great price for our overconfidence and our recklessness.”
‘Gas prices have risen for 32 days straight, according to AAA.
That means that the average price for a gallon of regular unleaded gasoline has increased more than 13% over that period to $3.73.
It’s hitting wallets right in the middle of winter, when people are already looking at large home heating bills. And it comes just after many Americans have been hit with smaller paychecks, and are worried about looming budget cuts that could deliver an even deeper blow.
What’s behind the higher prices at the pump? It’s a confluence of factors, from rising crude oil prices, to production cuts and refinery closings.
“Right now, things are tight worldwide,” said Ray Carbone, president of New York commodities trading firm Paramount Options. “Refineries going down, unanticipated maintenance, and higher demand … going into driving season.” “
“A combination of high crude prices, refinery shutdowns, and early speculation has sent gas prices soaring to seasonal highs earlier than usual this year, with no signs of prices at the pump falling until spring, according to recent estimates.
Gas prices have climbed every day for the past 25 days, reaching a national average of $3.59 per gallon Monday, the most expensive national average ever for Feb. 11, according to AAA.
During just the past two weeks, average prices have climbed almost 25 cents, the biggest jump in gas prices in almost a year.”
“Hold on to your wallets: we are in the middle of a gas price spike, and experts say it will only get worse.
CBS 2′s Courtney Gousman learned several factors might push the price in our area to more than $4 a gallon.
It’s now become a task most people dread — pulling up to the pump.
“I never know depending on the day,” said motorist Carrie Secrist.
“It’s no fun at the pump,” said driver Veta Charles.”
“A new film starring Matt Damon presents American oil and natural gas producers as money-grubbing villains purportedly poisoning rural American towns. It is therefore of particular note that it is financed in part by the royal family of the oil-rich United Arab Emirates.
The creators of Promised Land have gone to absurd lengths to vilify oil and gas companies, as Scribe’s Michael Sandoval noted Wednesday. Since recent events have demonstrated the relative environmental soundness of hydraulic fracturing – a technique for extracting oil and gas from shale formations – Promised Land’s script has been altered to make doom-saying environmentalists the tools of oil companies attempting to discredit legitimate “fracking” concerns.”
Via The Foundry