Crude OIl

Wednesday, April 8, 2015 – 09:00 a.m.

Energy traders must have had a good time over the past week.

It was a week spent manipulating the price of Crude Oil to its highest level in six weeks. The only problem? It was a baseless reason, that being falling production, which was used to drive prices higher.

Yes. Falling oil well production. That’s the ticket!

Just as the California gasoline market was masterfully manipulated last month, by alarm of a gas inventory crunch that never materialized, the crude oil market has succumbed to the same unchecked game playing.

California inventories were never in danger of running short, but gas prices spiked more than $1 a gallon.

It should be noted that the large Tesoro Refinery in Martinez, California is back to full operation following a strike.

Now the falsely-inflated gas prices are grudgingly in decline. I emphasize the word “grudgingly”.

The latest stunt involved energy traders concocting a story that crude oil production has peaked, is on the verge of falling, and that gasoline demand was climbing.

The manipulation drove crude up by $10 a barrel.

On Wednesday morning the Energy Information Agency (EIA) released the latest crude and distillate production and inventory numbers.

The numbers went up. Not Down. What a surprise?

As a matter of fact they went up big.

Crude Oil inventories, which climbed 11 million barrels last week, stand at an 80-year high. Storage capacity still remains on track to max out in May.

In fact, U.S. Oil production actually increased, while Saudi Arabia is producing at record levels.

Traders are desperate to prop up prices. But at this point all their doing is costing consumers millions of dollars on phony rumors.