Saudi Arabia over weekend agreed to boost their oil output by 2%. MSNBC has been camped at the trading floor to watch the price of oil. The price of oil didn’t go down. MSNBC is reporting that traders are saying a 2% boost in output isn’t going to affect supply.

This is all complete bullshit. There is no oil supply problem. There is an oil speculation problem. The price of oil is being fueled by speculation Bush will bomb Iran coupled with a weak dollar. In addition, Bush refuses to release oil from the strategic reserve.

You want cheaper oil and gas? First close the Enron loophole. According to testimony before Congress two weeks ago by Michael Greenberger this would drop the price of oil 25% to 50% literally overnight. Second, dump 50% of the strategic reserve on to the market. This will further help flush out the speculators. Lastly, stop saber rattling against Iran. I suppose it’s just coincidental that any time oil starts to drop Bush starts talking about bombing Iran.

Pensito Review:
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Congress and George Bush could take a step tomorrow that would create a drop in oil prices of between 25 and 50 percent overnight, simply by closing the Enron Loophole.

This is according to testimony before a Senate Committee two weeks ago by Michael Greenberger, the former director of Trading & Markets for the Commodities Future Trading Commission (CFTC), the government board that oversees commodities markets:

“Yes, overnight [closing the Enron Loophole] will bring down the price of crude oil to get at least a 25 percent drop in the cost of oil and a corresponding drop in the cost of gasoline. Some people estimate 50 percent.” More Here
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Check out these recent news gems fueling high oil prices:

Kristol: Bush Might Bomb Iran If He ‘Thinks Senator Obama’s Going To Win’
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“I do wonder with Senator Obama, if President Bush thinks Senator Obama’s going to win, does he somehow think — does he worry that Obama won’t follow through on that policy,” Kristol added. Host Chris Wallace then asked if Kristol was suggesting that Bush might “launch a military strike” before or after the election:

WALLACE: So, you’re suggesting that he might in fact, if Obama’s going to win the election, either before or after the election, launch a military strike?

KRISTOL: I don’t know. I mean, I think he would worry about it. On the other hand, you can’t — it’s hard to make foreign policy based on guesses of election results. I think Israel is worried though. I mean, what is, what signal goes to Ahmadinejad if Obama wins on a platform of unconditional negotiations and with an obvious reluctance to even talk about using military force.

Bolton: Israel Will Attack Iran After U.S. Election But Before Inauguration, Arab States Will Be ‘Delighted’

This morning on Fox News, former U.N. Ambassador John Bolton continued his drumbeat for war against Iran. Adopting Bill Kristol’s argument, Bolton suggested that an attack on Iran depends on who Americans elect as the next President:

I think if they [Israel] are to do anything, the most likely period is after our elections and before the inauguration of the next President. I don’t think they will do anything before our election because they don’t want to affect it. And they’d have to make a judgment whether to go during the remainder of President Bush’s term in office or wait for his successor.

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Isn't it interesting that on the weekend when Saudi Arabia met and decided to increase output these two knuckleheads Kristol and Bolton are on the TV talking about bombing Iran. And MSNBC (except Keith Olbermann) is happy to report from the trading floor that there just isn't enough 'supply'. What traders fail to mention is that they want more oil to trade and speculate on. They are not talking about actual physical supply but rather the supply of futures contracts and electronically traded oil.