The lies about the Oil Price

The news and newspapers are "barking" that the price of fuel keeps rising, that the price of oil is rising due to the crisis in Libya, etc.

But... I tell you honestly:

ALL THIS IS A LIE!

I'm going to tell you the truth.

Why are oil prices rising?

Speculation.

The oil companies are making fun of people, they have millions of liters of oil in stock, in the tanks, and whenever the price of oil goes up, they increase the price of the liter of fuel by 2 or 3 cents, claiming that it is due to the rise in the price of oil. (They update the price daily).

BUT THEY ARE SELLING US OIL THAT THEY HAVE ALREADY HAD IN STOCK FOR MONTHS

(and that could be bought much cheaper).

Let's look at an example: Imagine that I buy twenty bottles of Coca-Cola at 1 euro each. (That would be 20 euros). And I sold each glass of Coca-Cola to you at 30 cents.

The next day, the price of Coca-Cola would increase, and I would automatically increase the price of each glass to: 35 cents, claiming that I did this because the price of Coca-Cola had increased. (But remember, I was selling Coca-Cola that I had in stock, at a lower price).

Every time an oil company increases the price of 2 cents per liter, they make millions of euros in profit (because there are millions of people filling up their vehicles' tanks).

But you can say even more:

Each contract concluded on the IPE (International Petroleum Exchange) forward markets based in London, or within the NYMEX (New York Mercantile Exchange), represents 1000 barrels of oil. In 2003, total transactions amounted to 100 billion barrels. This disproportionate number is due solely to speculation.

For each real barrel of oil, they traded 570 “paper” barrels (only on paper, in contracts).

Thus controlling and manipulating prices.

The prices presented to the public are always speculative prices and not those of oil sold daily, through long-term contracts.

In London, on the IPE market, speculators can operate with capital of only 3.8% of the amount of their purchases.

Whenever oil prices rise, food prices will rise:

A study carried out in Great Britain reveals, for example, that transporting a head of lettuce from the United States to Great Britain uses 127 calories of energy (airplane fuel) to get 1 calorie of lettuce; 97 calories of energy are needed to import 1 calorie of asparagus (by air) from Chile.

Food transport uses fuel, and whenever the price of fuel increases, the price of food increases.

Silvio Guerrinha