Gas and diesel surge beyond $3 mark.

It is a bull market for oil ... and they're still shovelling it on Wall Street. Thank you, Goldman Sachs and Morgan Stanley.

Like most of us, you've probably cut back on your fuel consumption. But according to Goldman Sachs, the rest of the world economy is booming. Never mind the fact that record levels of surplus oil - an estimated 125 million barrels - are floating on barges and supertankers in temporary storage because they can't be sold .... because if Goldman says prices are going up, they are going up. On Wall Street, nothing succeeds like success, and Goldman Sachs, which nearly went bankrupt last year, is great at creating the illusion of success. 

Unfortunately, this gaming of the market is costing you money. Historically, gasoline prices should be dropping dramatically at this time of year ($2.50 a gallon on average in California would not be unreasonable).

But never mind the fundamentals -- Goldman Sachs --  the same company that fueled last year's run up to $150 a barrel oil by predicting $200.00 a barrel oil is now predicting $95 a barrel oil this year ... and it looks like they might succeed in running the their captive herd of unthinking bulls straight over the edge of an investment cliff.

That means higher gasoline costs for you - not because it suddenly costs more to drill oil, or because there is a new global demand for oil - there isn't. Oil prices are going up because Goldman Sachs and Morgan Stanley say they're going up.  And everybody trusts Goldman Sachs and Morgan, right?

Earlier today, we published an insider's analysis on the Goldman Sachs phenomona by insider Robert van der Valk at UCAN's gasoline project. His metaphor? Goldman's aggressive pitching of oil futures to clients will make a very interesting baseball game. 

As for us? we wish the speculators would just go Home.  Get the full analysis here.