Commodities expert JR Crooks at Black Swan Capital explains how the Obama administration’s “piecemeal energy policy” threatens to drive oil prices even higher.
“As it pertains to domestic energy policy, investors and speculators certainly use U.S. policy as a foundation for crude oil price direction,” Crooks, editor of Commodities Essential, explained to me in an interview.
“Unfortunately, though, I’d say the piecemeal energy policy of the U.S. is actually supportive of higher prices,” Crooks says.
“The pushback on pipeline development and offshore drilling projects suppresses production. And that exacerbates the pressure on refineries responsible for the high-priced gasoline that consumers are so stressed about.”
“Policy is forcing the economy to adopt still-unfeasible alternative energy development at the expense of crude oil development.”
“When government tries to pick winners, they almost always lose,” Crooks concludes.
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