Rising Oil Prices: Your Emails To The Insider On Blame
Nothing enflames our market readers more than rising oil prices. I thought I'd share some of your views. You blame Congress, Boone Pickens and CNBC.
From Randy G. in Minnesota:
"As a long time CNBC fan (and market participant), I’m a bit skeptical (and unsure of motivations) of CNBC’s interview with Boone Pickens today (5/20/2008). Boone Pickens says on CNBC this morning that oil will go to $150 per barrel this year. Several times during the day I heard on CNBC and local radio stations that oil was up sharply today because Boone Pickens said it was going to rise. Makes me say “Hummmm”.
Hummmm, Boone Pickens said on CNBC that he is long oil. Boone Pickens speaks and everyone listens to his thought that oil is going up, up, up. The market expects oil to go up, up, up and it does. The media (CNBC included) constantly reports that fuel prices will be rising and for consumers to expect higher prices at the pump. And oddly enough, at the end of the day, Boone Pickens makes a big profit being long oil.
It seems like Boone Pickens is in quite the position that he can speak on CNBC as often as he wants and share his thoughts on how he believes oil prices will rise which perhaps is fueling (pun intended) the rapid increase in the prices of our oil products. Something just doesn’t seem quite right here for me—borderline question of ethics.
Thanks for reading my thoughts and observations. I really enjoy CNBC TV and CNBC on XM radio."
This from Ian H:
"Regarding the enormous attention given to the views of Boone Pickens, nobody ever seems to qualify their comments on them by the fact that he is clearly talking his own book most of the time, and benefits greatly from the oxygen given to them by the media.
Surely there should be a greater focus on the views of truly independent (but also properly informed and qualified) observers, who don’t have large investment positions that naturally benefit from markets feeding on their comments/ forecasts."
From Rich C.:
"Today the economically illiterate Senate Judiciary Committee looks for a scapegoat for higher energy prices. They claim supply and demand have either been repealed or manipulated. Right.
Look no further than unconstitutional Congressional regulations and laws discouraging nuclear energy development, coal and oil production and refineries for decades.
Bill Clinton took Utah low-sulfur coal off the market. ANWAR and the Northern Pacific Coast have been off limit for oil production. Last Thursday, with oil at $124 a barrel, the Senate Appropriations committee voted to block environmentally sound development of oil shale in Colorado. Duh."
And from Gerald S.:
"Do you not think it ironic that over 30 years ago the pundits, press, and public all laughed at President Carter and other conservationists for suggesting that there was not an endless supply of oil and that conservation, solar, and wind were viable energy sources. I find it a further irony that as gasoline approaches $4.00 per gallon many folks still insist on driving their gas guzzling SUVs at 80+ miles per hour, and the car dealers are still trying to convince people that 12 mpg is good gas mileage."
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