Koch Industries contributing to higher oil prices through speculation

by Colonel on June 9, 2011

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“Koch’s role in inventing modern oil derivatives.

Koch’s alliance with Enron and the Gramm family in deregulating oil speculation, first in the early ’90s then again ten years later.

Koch’s participation in unregulated exchanges, and the ways in which it uses its political power to allow excessive oil speculation to continue.

Experts contacted by ThinkProgress pin the blame for sky-high prices and record volatility on excessive oil speculation, the oil market corrupted by unregulated Wall Street traders who buy and hold onto oil futures contracts with no interest in the actual delivery of oil. Koch Industries — generally known as an oil pipelines and refining company — is also on the forefront of speculating on oil for profit.

Even Goldman Sachs concedes that at least $27 of the price of crude this year has been a result of rampant speculation, not supply and demand. Other experts contacted by ThinkProgress have said the number is closer to fifty dollars. To read our report about Koch Industry’s long and sordid history in the oil speculation business.”

Source 2

Even Exxon-Mobil CEO stated that oil speculation is contributing to the high oil prices, accounting for the difference between current prices and $60-70 a barrel.

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