
Rex Tillerson, the boss of ExxonMobil admitted last week that the price of oil–based purely on supply and demand- should be in the $60 to $70 a barrel range. The reason it’s above $100 a barrel, Tillerson explained, is due to the oil majors using futures contracts to lock in current high prices, and speculation that is engineered by the high-frequency trading of quantitative hedge funds.
That was just one of the stunning revelations made during the Senate hearing on tax subsidies to the oil industry– which featured the 6 most powerful CEOs– BP, Shell, Chevron,Conoco-Phillips and Exxon-Mobil– all sitting like ducks in a row giving the stiff-arm to pressing unfriendly inquiries from a host of Democratic Senators.
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