WALL STREET'S BLACK FRIDAY

“Not even when hurricanes Katrina and Rita actually did damage to America’s energy production did prices rise as much as last Friday – and nothing that happened Friday had any bearing on energy production – it was entirely speculation-driven fear on the part of Wall Street to justify predatory profits at the expense of American families and businesses.”

June 9, 2008 (Cromwell, CT) In what can only be described as the single greatest example of Congress' need to restrain the unbridled fleecing of America by Wall Street, Wall Street last week increased America's energy bills by billions of dollars by further bidding up the price of natural gas, crude oil, gasoline and heating oil by unprecedented amounts.  America ’s financial institutions have an estimated $260 billion invested in energy commodities now, up from $13 billion in 2002 – a staggering 1,900% increase. During this same time crude oil’s price has increased 600% [Financial Times].

“Wall Street’s justification for sending this multi-billion dollar energy bill to America pointed to [a] one Morgan Stanley analyst’s view of crude oil going to $150 a barrel by the 4th of July after having declined $15 a barrel in the past week, [b] European central banks worrying about inflation and increasing interest rates driving down the value of the dollar increasing the billions flowing from investment banks and hedge funds into commodities, and then [c] Israel threatening Iran,” Gene Guilford, the Executive Director of the Independent Connecticut Petroleum Association, said, “Not even when hurricanes Katrina and Rita actually did damage to America’s energy production did prices rise as much as last Friday – and nothing that happened Friday had any bearing on energy production – it was entirely speculation-driven fear on the part of Wall Street to justify predatory profits at the expense of American families and businesses.”
 
Natural gas commodity costs have risen by 69 percent in the past 90 days, and as the northeast is disproportionately reliant on natural gas for electricity generation, this means bad news for electricity costs across the region entering into air conditioning season. Local distribution companies have already begun raising natural gas rates to their customers, as have heating oil and gasoline retailers.
 
“We welcome legislative initiatives by Senator Lieberman, Representatives Larson and Courtney and the further Congressional investigations into the role being played by Wall Street in driving energy costs far past the levels justified by supply and demand,” Guilford said. “Gasoline demand in America is down over 4 percent from March 2007 through March 2008 and has continued to decline since March, yet Wall Street has ignored the fundamental decline in demand, driving gasoline commodity prices still higher. Despite warmer weather in the last 90 days and almost absent demand for heating oil, Wall Street has driven heating oil costs still higher.”
 
There is no clearer indication of Congress' need to restrain Wall Street than is reflected by what Wall Street did last week - directly increasing the cost of all energy to America , Guilford said.

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ICPA represents more than 540 Connecticut based independent businesses. These businesses employ 13,000 Connecticut citizens and supply the majority of our state's 1,600 motor fuels outlets and 350 heating fuels dealers. ICPA's offices are at 10 Alcap Ridge, Cromwell, CT  06416.  For more information about today's Press Release, contact Gene Guilford or Chris Herb.