How Gas Prices Are Manipulated By Koch Brothers and Wall Street



Why are gas prices surging to levels unseen since the 2008 oil spike
while the oil companies reporting record profits? ~ Emine Dilek

Much of the problem is
actually created by Wall Street traders here in the USA who gamble on
oil prices and powerful multinational companies that manipulate the
supply and demand by stockpiling oil when the price is low and expected
to rise in the near future. And yes, so far this practice is perfectly

Bart Chilton, a commissioner at the Commodity Futures Trading
Commission (CFTC),  the federal agency that regulates commodity futures
and option trading in the United States, says a very few number of
players control too much of the market, allowing them to push the price
of gas higher and higher.

The American public knows very little about
the oil speculation industry because a conservative majority on the CFTC
has refused to implement the mandates from the Dodd-Frank Wall Street
Reform and Consumer Protection Act to curb abuses and provide

One of those players is the petrochemical multinational Koch
Industries. Although oil extraction is a small part of the Koch’s oil
business the company has major control over  every other part of the
market as its core venture is shipping crude oil, refining it,
distributing it to retailers, then speculating on the future price.  

company actively trades about 50 types of crude oil around the world
and has trading operations in London, Geneva, Singapore, Houston, New
York, Wichita, Rotterdam, and Mumbai.

When future oil prices are expected to rise–which means when demand
is expected to exceed supply–big banks and companies like Koch start
buying up oil and storing it in massive containers both on land and
offshore to lock in the oil for sale later at a set price.

In 2008, Fortune magazine reported that Koch Supply Trading
leased the 2-million-barrel-capacity Dubai Titan that year, the third
supertanker the company has leased, because the demand for oil storage
was so high that Koch and other big investors who could not secure
storage on land have resorted to leasing supertankers and using them as
floating oil tanks.

Koch was one of the companies that lobbied aggressively against
President’s financial reform bill-–mentioned above–particularly on
provisions related to transparency in the energy trading market.

Representatives from the company’s lobbying firm even argued that
moderate levels of the toxic chemical dioxin should not be designated as
a cancer risk for humans at an EPA hearing last summer.

When we look at the money Koch has spent on lobbying to influence
laws and regulations in Washington in recent years–from $857,000 in 2004
to $20 million in 2008–it is not surprising that Koch’s lobbyists and
officials have successfully fought to preserve the industry’s tax breaks
and credits, and defeated all attempts by Congress to regulate
environmental hazards and transparency requirements.

At the beginning of February 2012, Koch and about 300
other-–invitation only–individuals pledged approximately $100 million to
defeat President Obama in the 2012 elections at a private meeting in

Now at the end of February 2012 we are seeing a
distinctive rise in the oil prices at the pump.  I will not speculate
any further as I have the utmost trust in the intelligence of our
readers to connect the dots and fill in the blanks.


Emine Dilek – February 26, 2012 – AddictingInfo



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