Obama Oil Price Hopes Being Realized

Oil prices are SOARING; and Obama is overjoyed.   He and Michelle are taking the big bird tonight to catch a Broadway play, and dinner, “Date night.” Wiped-out General Motors bondholders picked up the tab for Air Force One. This is what Obama calls “shared sacrifice.”

Why the celebration? If Obama needs $20 tax per barrel of oil to fund ADDITIONAL ACORN voter “organizing,” it is much easier to do when oil is $66 per barrel, compared to when oil is $35 per barrrel (government tax on gasoline sales is already higher than evil oil company profits – but with “CAP AND TRADE” the sky is the limit).

Obama, who bows violently at the merest sniff of Arab royalty, may be able to win some concessions by bowing down again (er . . . no, Obama). The truth is, Obama likes very much high oil prices; it cuts down on sales at his new GM subsidiary. The economic crisis, rich in opportunity for Obama to spread money around, continues. Capiche?

Crude Oil Caps Biggest Monthly Gain Since 1999 on Dollar Drop

By Mark Shenk

May 29 (Bloomberg) — Crude oil rose, capping its biggest monthly gain in a decade, as the dollar weakened against the euro, bolstering the appeal of commodities.

Oil climbed above $66 a barrel to a six-month high as the dollar declined beyond $1.41 against the euro for the first time this year, making raw materials such as oil and gold an attractive alternative investment. Prices also gained as U.S., and Asian indicators pointed to a global economic recovery.

“The devaluation of the dollar is leading to the revaluation of energy and commodities in general,” said John Kilduff, senior vice president of energy at MF Global in New York. “This is a monetary-based rally. The market is focused on the future and ignoring the fundamentals of the present day crude-oil supply and demand picture.”

Crude oil for July delivery rose $1.23, or 1.9 percent, to $66.31 a barrel at 2:59 p.m. on the New York Mercantile Exchange, the highest settlement since Nov. 4. Oil advanced 30 percent in May, the biggest monthly increase since March 1999, when Asia was recovering from the 1997-1998 financial crisis. Prices climbed 7.5 percent this week and 49 percent this year.

The U.S. currency had its biggest monthly decline against the euro this year. The dollar dropped 1.4 percent to $1.4134 versus the single European currency.

Commodities are heading for the biggest monthly rally in 34 years, led by energy futures. In May, the Reuters/Jefferies CRB Index of 19 energy, metal and agricultural prices has gained 13 percent, the most since July 1974. The index is up 1.3 percent to 253.05 today, the highest since Nov. 10.

During his election campaign, approximately one year ago, Obama stated that he thought $4 per gallon gasoline was a good price; and that Americans would willingly accept such prices if only they hadn’t increased so fast; clearly faulting the Bush administration.

But Obama himself has broken the record for oil price increases: “biggest monthly increase since March 1999, when Asia was recovering from the 1997-1998 financial crisis. Prices climbed 7.5 percent this week and 49 percent this year.” Reasonable, competitive energy prices are antithetical to Obama’s “hope and change” economics “strategy”; get over it.

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