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The secret group setting the price of oil: Us. – FORTUNE Features – Fortune on CNNMoney.com.

From the article – everyone needs to read it in America, including my children and parents, aunts, uncles, friends, acquaintances and anyone reading this durn blog –

At least it explains why the price of oil is going up and why when it does go up for contracts that won’t be delivered for three – four months, that we still watch the little sign at the gas station go up three to four times a day upwards –

(and prices of everything else quickly accommodate that despite none of them having bought any gasoline or jet fuel at those prices yet.)

– cricketdiane

A couple bits of this article (from the link above) –

Power plants, gas stations, fuel distributors, and oil companies across the globe paid close attention to this rarefied casino, watching carefully for any price changes that would determine how much they would pay for fuel and what they’d charge their customers, the ordinary consumer. Newspapers and television networks trumpeted Nymex’s prices as the holy gospel, beaming them throughout the continents for all to follow—banks, hedge funds, Wall street investors, even the top-producing oil nations of Saudi Arabia, Iran, Russia, and Norway.

D’Agostino: No. OPEC only sets the oil supply. . . . The price of oil is actually set in New York. . . .

O’Reilly: Is there a guy who says $125 a barrel?

D’Agostino: No. There’s a huge market. It’s filled with hedgers. It’s filled with speculators. It’s filled with moms and dads, average Americans. It’s a big market that sets the price.

O’Reilly: somebody has to put the $125 on the barrel. Who does it?

(an excerpt from the Bill O’Reilly show included in the text, the first paragraph is from the author of the article and book that serves as its basis) – well worth reading the whole thing, my note.

http://features.blogs.fortune.cnn.com/2011/03/09/excerpt-from-the-asylum-the-renegades-who-hijacked-the-worlds-oil-market/

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