![]() ![]() ![]() weak-dollar policy, which has "subsidized oil demand outside of the world's dollar economies," Picchi said.įor now, in the currency markets Monday, the U.S. Indeed, another bit of oil-market manipulation has been the U.S. He was quoted by Algerian official news agency APS, according to a Reuters report. He estimated that "worldwide, several dozen governments subsidize their citizens' oil consumption (30 million barrels per day, or 35% of world demand) at an annualized cost of $500-650 billion." Unreasonable spikeĬhakib Khelili, president of the Organization of the Petroleum Exporting Countries, said Monday that there was a speculative bubble in the oil markets and if it weren't for a weak dollar and geopolitical problems, oil should be trading around $70 a barrel. Picchi estimates that in the case of China, oil price subsidies now run $125-150 billion a year. "Nine of the ten countries with the highest oil consumption growth have below-market oil prices," he pointed on in a research note released Monday. July natural gas shed 8.6 cents to finish at $12.604 per million British thermal units on Nymex, easing back after last week's gain of 8.5%.įor oil, "there should continue to be some rampant speculation in the market pushing prices higher, but that speculation does have some strong fundamental underpinnings to its logic," Ryan said.īernard Picchi, a senior managing director at Wall Street Access, said he believes there is "ample evidence of oil-market manipulation, but not by oil companies or hedge funds, but by governments who subsidize consumption with below-market oil prices." ![]()
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