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Fed Stimulus Sends Crude to Four-Month High

Rig Zone -- Oil futures climbed to a four-month high Friday and briefly topped $100 a barrel in the wake of the Federal Reserve's latest plan to boost the U.S. economy through bond purchases.

The Fed's announcement Thursday sent the dollar sliding against other major currencies for a second straight session, boosting the price of dollar-denominated commodities such as crude oil.

Although many traders had expected the Fed to act Thursday, the open-ended nature of the stimulus program took many market participants by surprise, prompting additional buying.

"The Fed has always given an exit strategy on this policy," said Phil Flynn, analyst at Price Futures Group, a commodities brokerage in Chicago. "Now there is no exit strategy."

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Submitted Sep 15, 2012 By: mastermariner

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drpepperTX Champion Author Texas Posts:9,151 Points:777,900 Joined:Apr 2011	Message Posted: Sep 17, 2012 9:54:24 AM Ignore drpepperTX Report Abuse Well said StArrow68.
StArrow68 Champion Author Oakland Posts:3,392 Points:1,386,690 Joined:Apr 2003	Message Posted: Sep 16, 2012 6:40:16 PM Ignore StArrow68 Report Abuse Stimulus increases the price of oil since it is just printing more money, in this case making the dollars in your savings account worth less. Great for the government since they pay off debt with devalued dollars. Not so good for those who save.
remay Champion Author Houston Posts:7,073 Points:2,142,240 Joined:May 2006	Message Posted: Sep 16, 2012 1:17:57 PM Ignore remay Report Abuse There is always SOME deflecting excuse to keep the REAL reasons unmentioned...
jrs4125 Champion Author Indiana Posts:2,888 Points:617,495 Joined:Sep 2011	Message Posted: Sep 16, 2012 8:15:23 AM Ignore jrs4125 Report Abuse You can't loose if your part of the 1%.
DrCashFlow Champion Author Massachusetts Posts:7,196 Points:1,652,875 Joined:Jun 2008	Message Posted: Sep 16, 2012 5:02:48 AM Ignore DrCashFlow Report Abuse Thanks Ben
SammyAdams Champion Author Tallahassee Posts:3,191 Points:819,310 Joined:Nov 2010	Message Posted: Sep 15, 2012 11:07:58 PM Ignore SammyAdams Report Abuse REPOST: Message Posted: Sep 14, 2012 1:29:50 PM Ignore SammyAdams Report Abuse Senator Harry Reid who opposes a "stand alone" vote on auditing the Federal Reserve (Because one third of the U.S. Senate is up for re-election and it's difficult to oppose any "transparency" in government) is the same Harry Reid who is training his oldest lawyer son regarding how "going green" can create some "GREEN" for the Reids. Below is another example of for whom Harry Reid actually works (From another post of mine earlier today). To wit: Message Posted: Sep 14, 2012 12:47:46 PM To: scu227 Re: Message Posted: Sep 14, 2012 9:43:42 AM (Printed below) "Why should the price of fuel go up just because the Fed decides to try and help the economy? I thought the stimulus was to help the economy, not give the speculators and oil companies more profits." ================================================================= The "stimulus" is more of a sleight of hand deception for the ill-informed than anything else. The idea behind it makes sense to untutored minds because it says that our economy needs to get out of the doldrums, so we (The FED) will get the pump primed by spending money in the economy. The problem is that what they are postulating is driving up the cost of everything and not helping the average Joe in the process. Printing up money (The dictionary definition of inflation) is akin to counterfeiting. If printing up more money is so good for the economy, why not print up a million dollars for every man, woman, and child in the country? You might need to dwell on that for a while. All that you accomplish by counterfeiting money is more money enters circulation where goods and services remain constant. Prices RISE (are bid up) to meet the increase in the money supply. It's like adding a can of water to the soup when you have an unexpected dinner guest. There will be MORE soup for everyone to have SOME, but there will be a less quality soup, because it has been thinned out by the increase in water (money supply) Another way to look at any of the government's "stimulus" deals is if the government comes into your store in order to "stimulate" your business and puts a gun to your head and empties the cash drawer. Then as these government (thugs) begin to leave they "purchase" a carton of cigarettes and a case of beer on the way out. You and the economy have just been stimulated by the government. Only this example paints a better picture than how it actually exists. The money spent isn't always in YOUR store. They invest the money (Read: "squander") in "make work" projects (Like more government jobs, which add no wealth to the overall economy), invest money in boondoggles (Bet you thought of "Solyndra", didn't you?), and generally waste money on just about every thing imaginable. The Chairman of the Federal Reserve, Ben Bernanke, is really an enemy of the people, despite the kind grandfatherly face he portrays in public. The Federal Reserve is not "Federal" and it has no "reserves". It is a privately owned banking cartel and knows that if (or better "when") it is audited, its doom is certain. The U.S. House passed the "Audit The FED" measure overwhelmingly (327 to 98) recently (because 100% of all Congressmen must face the folks for re-election), but the U.S. Senate (which stalled and then watered down the House version once before and which wants to do it again), led by Harry Reid who does not want it to come before that body for a "stand alone" vote. The Senate version (S. 202) of this "Audit the FED" measure will shed some light on "where" and to "whom" the FED loans U.S. Taxpayer money (stimulus). Ron Paul made this the centerpiece of his campaign for President and the Establishment didn't like it. But YOU can thwart their plans by having you U.S. Senators become co-sponsors (27 thus far - up from 20 in July) and VOTE for S. 202 while they are still in session. Request (Read: "Demand") that this be a stand alone vote (not attached to any other bill) and that the vote be recorded. Who could oppose such "Transparency" in government?
SammyAdams Champion Author Tallahassee Posts:3,191 Points:819,310 Joined:Nov 2010	Message Posted: Sep 15, 2012 11:06:14 PM Ignore SammyAdams Report Abuse There are a number of factors which contribute to the higher prices of fuel and consumer goods and the "government" has a part in ALL of them, but nothing has been as insidious as the Federal Reserve. It is responsible for what has been called (and very appropriately) the "inflation tax". It is particularly cruel to (Though it is no respecter of whose wealth it destroys) the poor, elderly, and those on fixed incomes. The definitive work on the FED is a book titled "The Creature From Jeckyl Island", written by G. Edward Griffin ans is available from Google Books, American Media, and other sources. Jeckyl Island was the place (an island off the coast of South Carolina) where The Federal Reserve was devised by a coterie of bankers who at that time made up one fourth of the WORLD'S WEALTH. Though this meeting was "secret" and admitted so later by one of its attendees, most would pooh pooh the term "conspiracy". The Federal Reserve has never had a meaningful audit. A "watered down" Senate version of a bill authored by Texas Rep. Ron Paul revealed Trillion$ of dollars loaned to both U.S. and European banks. You can hardly understand the phoniness of the contest between BO and Mitt Romney without an understanding gained from reading this book. Legislation to "Audit The FED" has overwhelmingly passed the U.S. House and has 27 co-sponsors in the U.S. Senate. The most important service that you can do which will impact American politics now and forever is to urge your two Senators to co-sponsor and/or vote in favor of a "stand alone" vote for (S.202) this "Audit The FED" measure. Sen. Harry Reid has vowed to oppose putting this on the Senate Calendar, but this can be thwarted by calling your Senators and demanding a "stand alone" vote with a "roll call" of how each and every member voted. Following is a post from yesterday which briefly explains how the FED robs our wealth by printing more money (inflating the money supply).
Cheepo Champion Author Tampa Posts:9,984 Points:3,146,930 Joined:Apr 2003	Message Posted: Sep 15, 2012 3:39:02 PM Ignore Cheepo Report Abuse Dump the fed!!!!!!!!!
pizzaman09 Champion Author Indiana Posts:1,457 Points:1,228,345 Joined:Feb 2009	Message Posted: Sep 15, 2012 3:25:31 PM Ignore pizzaman09 Report Abuse HELLO
jimbeaux53 Champion Author Kansas City Posts:5,222 Points:993,260 Joined:Aug 2010	Message Posted: Sep 15, 2012 3:11:19 PM Ignore jimbeaux53 Report Abuse I'm sure all the violence in the Middle East has nothing to do with speculation driving oil prices. Right!!! It's all due to the Fed? If that is what you want to believe. [Edited by: jimbeaux53 at 9/15/2012 3:13:27 PM EST]
ktbaeohana Champion Author Las Vegas Posts:2,412 Points:442,125 Joined:Mar 2010	Message Posted: Sep 15, 2012 1:22:59 PM Ignore ktbaeohana Report Abuse watch and see.
hok Champion Author Los Angeles Posts:1,370 Points:1,026,720 Joined:May 2008	Message Posted: Sep 15, 2012 12:08:39 PM Ignore hok Report Abuse √
jimgraham Champion Author Akron Posts:10,505 Points:2,005,875 Joined:Oct 2007	Message Posted: Sep 15, 2012 11:09:30 AM Ignore jimgraham Report Abuse """The Fed on Thursday unveiled a plan to buy $40 billion in mortgage-backed securities every month and said it would keep buying until the job market improves. The measure was seen as an unusually strong commitment by the Fed, whose previous bond-buying initiatives came with a specific end date.""" Pump more money into Wall Street? Why?? Because the idiot reps in DC have only their OWN interests at heart - and those of Wall Street - not that of the electorate. THIS one is seen as a unending, open checkbook from the fed to the "bankers" and speculators on Wall Street and the world. Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. That is why these QE actions are leading to hyperinflation and the destruction of the American middle class. Tho the folks in DC do not admit it, hyper inflation is on its way here due to these BS QE debacles. We may soon be like Germany in the 20's - a wheelbarrow of marks to buy a loaf of bread. Is this part of the "one world, one economy" plan from the EU - the EU will disintegrate whether or not we help them - so why drag us down with them?Vote them ALL out. Darned near anyone would be better for US. Doesn't that sound like Germany and the rise of Hitler?? THAT we definitely DO NOT need.
geezrtek Champion Author Michigan Posts:2,043 Points:448,785 Joined:Apr 2011	Message Posted: Sep 15, 2012 10:44:16 AM Ignore geezrtek Report Abuse Bad URL Real URL http://rigzone.com/news/oil_gas/a/120720/Fed_Stimulus_Sends_Crude_to_FourMonth_High
A_NY_Outlaw Champion Author Albany Posts:1,408 Points:728,915 Joined:Mar 2011	Message Posted: Sep 15, 2012 10:39:53 AM Ignore A_NY_Outlaw Report Abuse Obamanomics indeed!! Get used to it. If the King gets another term, Chu and Obama will make sure the current prices seem like 'the good ol' days' no doubt.
montytexas Champion Author Houston Posts:3,008 Points:1,435,495 Joined:Jun 2006	Message Posted: Sep 15, 2012 10:39:49 AM Ignore montytexas Report Abuse Time to buy a YikeBike from New Zealand ??
bigmoo63 Champion Author Kalamazoo Posts:1,284 Points:84,610 Joined:Nov 2009	Message Posted: Sep 15, 2012 10:37:30 AM Ignore bigmoo63 Report Abuse Devalue the dollar some more. And the banks can take another bite. Lovely.
kirzon484 Champion Author Atlanta Posts:1,996 Points:459,035 Joined:Jun 2011	Message Posted: Sep 15, 2012 10:33:56 AM Ignore kirzon484 Report Abuse just leave it alone
INBwana Champion Author Indiana Posts:5,692 Points:721,735 Joined:Apr 2011	Message Posted: Sep 15, 2012 10:33:16 AM Ignore INBwana Report Abuse Stimulus? Why? How can this help our economy? I don't understand!
deputydog082 Champion Author Detroit Posts:1,901 Points:684,875 Joined:Apr 2011	Message Posted: Sep 15, 2012 10:27:57 AM Ignore deputydog082 Report Abuse no surprise here
Pramodsharma Champion Author Richmond Posts:2,094 Points:411,190 Joined:Feb 2012	Message Posted: Sep 15, 2012 10:27:46 AM Ignore Pramodsharma Report Abuse Fed as Friends, then no Foes required, It comes automatically with friendship!
w4kh Champion Author Tennessee Posts:11,800 Points:2,254,740 Joined:May 2004	Message Posted: Sep 15, 2012 10:27:18 AM Ignore w4kh Report Abuse We need to get America back to work and get businesses hiring and moving forward. This recession was brought to you courtesy of the Republican Congress Critters who repealed Glass-Steagall and let loose the flood of derivatives that brought down the world-wide financial system... hard to shove that monster back in the bottle, and yet Romney plans to try for even MORE deregulation which so far is what plunged us into this recession. - Maybe I should move to Canada. Any place warm in winter up there?
BlackGumTree Champion Author Virginia Posts:18,439 Points:1,459,665 Joined:Dec 2005	Message Posted: Sep 15, 2012 10:27:09 AM Ignore BlackGumTree Report Abuse Why do they call this a stimulus; it won't stimulate the economy? The fools should be fired for incompetence.
DABEE1073 Champion Author San Diego Posts:8,345 Points:1,598,835 Joined:Jun 2008	Message Posted: Sep 15, 2012 10:26:58 AM Ignore DABEE1073 Report Abuse MAKE UP THE DIFFERENCE WITH DOMESTIC CRUDE OIL.
Don20 Champion Author Oklahoma City Posts:9,804 Points:2,645,380 Joined:Mar 2005	Message Posted: Sep 15, 2012 10:25:52 AM Ignore Don20 Report Abuse The Fed's announcement Thursday sent the dollar sliding against other major currencies for a second straight session, boosting the price of dollar-denominated commodities such as crude oil. You can not buy your way out of debit.
ghmortensen Champion Author Minnesota Posts:2,036 Points:1,691,270 Joined:Jan 2007	Message Posted: Sep 15, 2012 10:25:36 AM Ignore ghmortensen Report Abuse This will hurt President Obama's chances for reelection.
bowler360 Champion Author Illinois Posts:2,105 Points:526,275 Joined:Jun 2011	Message Posted: Sep 15, 2012 10:25:07 AM Ignore bowler360 Report Abuse again,....if it's not one thing it's another
texashoudini Champion Author Austin Posts:2,679 Points:1,116,305 Joined:Jun 2009	Message Posted: Sep 15, 2012 10:25:05 AM Ignore texashoudini Report Abuse Of course! You would think Obama would want to show he is doing something. Now it is going the opposite way for him.
packards42 Champion Author Washington Posts:6,535 Points:1,147,920 Joined:Feb 2005	Message Posted: Sep 15, 2012 10:24:51 AM Ignore packards42 Report Abuse That always been Energy Czar Salar's plan European Prices for American consumers. Tesla wanted here.
pizzaman09 Champion Author Indiana Posts:1,457 Points:1,228,345 Joined:Feb 2009	Message Posted: Sep 15, 2012 10:23:41 AM Ignore pizzaman09 Report Abuse HAVE A NICE DAY.
JPGASMAN Champion Author Ohio Posts:1,661 Points:368,840 Joined:Mar 2012	Message Posted: Sep 15, 2012 10:23:04 AM Ignore JPGASMAN Report Abuse k
robaloma Champion Author Houston Posts:2,731 Points:718,025 Joined:Feb 2011	Message Posted: Sep 15, 2012 10:22:39 AM Ignore robaloma Report Abuse crazy
FunMyster All-Star Author Indiana Posts:909 Points:73,480 Joined:Jul 2011	Message Posted: Sep 15, 2012 10:22:24 AM Ignore FunMyster Report Abuse ok
studebaker1940 Champion Author Tampa Posts:2,643 Points:711,330 Joined:Mar 2011	Message Posted: Sep 15, 2012 10:22:21 AM Ignore studebaker1940 Report Abuse This should assure the democrats a crushing loss this November
krzysiek_ck Champion Author Illinois Posts:5,490 Points:754,885 Joined:Apr 2011	Message Posted: Sep 15, 2012 10:21:52 AM Ignore krzysiek_ck Report Abuse Is this the best this administration can do?
drpepperTX Champion Author Texas Posts:9,151 Points:777,900 Joined:Apr 2011	Message Posted: Sep 15, 2012 10:19:50 AM Ignore drpepperTX Report Abuse Inevitably hyper-inflation will result.
Agarre Champion Author Richmond Posts:1,335 Points:263,785 Joined:Feb 2012	Message Posted: Sep 15, 2012 10:19:39 AM Ignore Agarre Report Abuse nothing unusual
SavingInNC Champion Author North Carolina Posts:5,919 Points:1,117,265 Joined:Oct 2006	Message Posted: Sep 15, 2012 10:18:47 AM Ignore SavingInNC Report Abuse Obamanomics
alex395 Champion Author Louisville Posts:2,082 Points:280,255 Joined:Jan 2007	Message Posted: Sep 15, 2012 10:17:58 AM Ignore alex395 Report Abuse Middle East countries think Obama is weak, and they are right. Oil prices are going through the roof while he is in Las Vegas fund raising. So what has he done? Nothing, because he doesn't know what to do, he can't use his mafia style, ram it down your throat techniques over the middle east people like he does us.
Bonanza Champion Author Boston Posts:12,242 Points:2,576,755 Joined:Jun 2004	Message Posted: Sep 15, 2012 10:17:41 AM Ignore Bonanza Report Abuse No hope for our nation's future
wbpprint Veteran Author Chicago Posts:358 Points:1,429,230 Joined:Jun 2007	Message Posted: Sep 15, 2012 10:17:17 AM Ignore wbpprint Report Abuse So the Stimulus sent oil prices higher, that helps non-american companies get higher profits. In the meantime it will cost more at the pump so we will have less to spend for essential or an occasional luxury like having a meal at a restaurant, now that would help our economy. [Edited by: wbpprint at 9/15/2012 10:18:27 AM EST]
doncNJ Champion Author New Jersey Posts:7,651 Points:1,530,845 Joined:Oct 2008	Message Posted: Sep 15, 2012 10:15:45 AM Ignore doncNJ Report Abuse Here we go again. Thanks Baroco.
nascar1411 Champion Author Idaho Posts:2,023 Points:688,065 Joined:Nov 2010	Message Posted: Sep 15, 2012 10:15:26 AM Ignore nascar1411 Report Abuse just wait it will go higher
D4444J Champion Author Albuquerque Posts:1,973 Points:614,610 Joined:Aug 2011	Message Posted: Sep 15, 2012 10:14:45 AM Ignore D4444J Report Abuse Way to go Obumer
H2OBurner Champion Author Utah Posts:2,059 Points:732,735 Joined:Sep 2006	Message Posted: Sep 15, 2012 10:14:44 AM Ignore H2OBurner Report Abuse k
mazdaboy Champion Author Portland Posts:8,019 Points:2,124,005 Joined:Aug 2003	Message Posted: Sep 15, 2012 10:14:37 AM Ignore mazdaboy Report Abuse The fed acts independently of the government.
momof5MN Champion Author Twin Cities Posts:4,184 Points:221,110 Joined:Feb 2011	Message Posted: Sep 15, 2012 10:14:24 AM Ignore momof5MN Report Abuse November 6, 2012.
BlueVanGroup Champion Author Colorado Posts:7,336 Points:1,554,145 Joined:May 2008	Message Posted: Sep 15, 2012 10:14:10 AM Ignore BlueVanGroup Report Abuse Here's a link that works. The Fed will print/borrow $40,000,000,000 every month to buy bonds. That's a scheme to try and buy the election for Obama, not boost the U.S. economy. As progressive politicians continue to spend our dollars into toilet paper it takes more of them to buy fuel, food, and everything else. We'll all pay for it, but seniors will be hardest hit as their life savings dissolves before their eyes. (Inflation is an invisible tax.) We the People need to drag our representatives (kicking and screaming if necessary) back to fiscal responsibility. Vote out the worst offenders in November!
mateyboy All-Star Author North Carolina Posts:624 Points:79,315 Joined:Sep 2006	Message Posted: Sep 15, 2012 10:13:51 AM Ignore mateyboy Report Abuse Same news
200porter Champion Author Toronto Posts:2,195 Points:567,885 Joined:Sep 2011	Message Posted: Sep 15, 2012 10:13:35 AM Ignore 200porter Report Abuse Just another excuse to raise prices. Has it even been implemented?