Even with the threat of a Congressional investigation, oil prices found an excuse to surge almost $10 a barrel recently.  On Friday a Morgan Stanley analyst made a bold prediction that oil could reach $150 a barrel by July 4th.  Guess what happened next, the commodity traders (er, manipulators) used that Morgan Stanley statement to drive prices up. 

Wouldn't be nice if we could make predictions on what the junk in our attic is worth and then get people to pay it.  We could retire off our garage sale proceeds alone.

As I mentioned in my earlier blog entry, the price of oil appears to reflect manipulation at the highest level.  It happens with stocks.  "Buy on the rumor, sell on the news."  With oil being a bedrock commodity vs. some isolated stock, we all pay the price.  At the pumps, at the grocery store, pretty much everywhere.  Before trying to lay blame at the feet of OPEC, at least recognize they are getting upset with the elevated oil prices as well.  OPEC is selling a product and wants to see price stability and demand continue to increase within reason.

Recently, Saudi Arabia in their frustration has called for a summit of oil producing countries and consumers to discuss oil prices and work to prevent an unjustified rise in prices.

Iyad Madani, the Information and Cultural Minister, has stated they will work with OPEC to "guarantee the availability of oil supplies now and in the future."

The minister also was quoted as wanting to control "unwarranted and unnatural" price hikes and that the current price of oil is unjustified.

Even if price of oil can be brought under control, billions of dollars have been extracted from the U.S. economy and individual families when we need the money to help bolster the economy not speculators' bank accounts.  Another stimulus package will be required, but first the price of oil and gas must be brought under control.

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