Benchmark oil, West Texas Intermediate (WTI), has dropped nearly 30 percent in price over the past five months – $107 to $76 per barrel, with North Sea Brent on a similar trajectory. Anyone with one eye and half sense knows that has absolutely nothing whatsoever to do with supply & demand. It’s all about running the price of oil up, extracting billions of dollars in profits then jumping out of the market which results in plunging prices. So who’s doing this?
It’s billionaires who insist on becoming wealthier at the painful expense of the commoner. The former accomplishes that by buying produced oil, holding it in reserve to create a “shortage” then selling it at huge profits. They’re best known as “speculators”; gamblers. But exactly who are these people? We should put names and faces to them.
The top 10 oil traders around the world include three U.S companies: Archer Daniels Midland Company (CEO: Patricia Woertz, net worth: $50 billion), Koch Industries (Charles & David Koch, combined net worth: $88 billion) and Cargill (CEO: Greg Page, net worth: unknown; owners Cargill-MacMillan family net worth: $43 billion). Collectively the three company’s 2012 revenues exceeded $340 billion.
So those are the biggest of the big speculators. But there are other smaller ones, although with new lending rules in place now many of them are now struggling. On the other hand, some well-known international banks trade in commodities albeit not to the extent of the big 10.
These guys and gals “control more than half the world’s freely traded commodities” and are worth over a trillion dollars in annual revenue. The top five alone piled up $629 billion in revenues in 2010.
Most of them hide in tax-haven countries in order to avoid paying their fair share of the expense to keep our country running. With little to no government oversight, they have been known to manipulate the markets – in particular, oil – in order to run up the price which in turn cost the commoner like you and me an extra one to one-half bucks per gallon of gasoline.
So every time you fill up your auto, know that you just spent an extra $20 to $25 that goes right into the pockets of billionaires.
New billionaires are created each and every year through commodity speculation. By April of this year 4 new billionaires made the roles. One of them was Marco Dunand, CEO of Mercuria Energy Group, and another is Dunand’s partner, Daniel Jaeggi. They started their company less than ten years ago with only 10 people. Today they are a $100 billion commodity trading company.
There’s so much profit in the commodity trading business that they are growing by leaps and bounds, taking more and more risk as they go. The only good coming out of this is that most of the U.S. Wall Street banks are getting out of the commodity business by selling their units to other companies.