Panel Cites Surge in Speculative Oil Trades: Congress Gears Up to Devise Limits; Campaigns Spar

The Wall Street Journal ^ | June 23, 2008 | Stephen Power & Ian Talley

[agere_contra]

And you don’t think that the recent surge of gallon prices to almost $11 in Scotland won’t cause pressure on Parliament to do something about non end-use mega-speculators?

I live in the UK and we say things like "gee, perhaps the Government should reduce its gigantic tax on petrol".

We don't blame speculators at all. Speculators are not responsible for the taxes, and they are not responsible for the inertia blocking increases to supply

[Realism]

Then regulate both, if they don't like it tell them to hit the road, everything moves thru NYMEX which IS regulated.

[VRWCmember]

And you don’t think that the recent surge of gallon prices to almost $11 in Scotland won’t cause pressure on Parliament to do something about non end-use mega-speculators?

My guess is that the regulators will recognize the commodity trading as a goose that lays golden eggs by bringing billions of British Pounds (bought with other currencies) into the British economy, and as such they will resist any such pressure.

[groanup]

Historically, commodity positions have been limited for speculators only. IOW, the producers and users of the commodity have no real position limits. So a farmer growing soybeans can sell all the soybeans he wants for future delivery but a speculator is limited in how many he can sell.

So at some point the investment bankers convinced the commodity regulators that they were hedgers and didn't need limits. The truth is they are pure speculators albeit with other peoples' money.

I think it is entirely reasonable to put position limits on investment bankers and hedge funds.

[thackney]

Very well put.

BTTT

(I intend to steal that)

[tessalu]

Suspend all oil speculation, and see if it really does help. If it does help, make it permanent. Too many people want to earn a living without working or cotributing to the good of society,

[thackney]

Suspend all oil speculation

How, wave the magic wand?

Oil is traded on exchanges around the world. It is a global, fungible commodity.

[SunkenCiv]

Thanks gleeaikin for both links. Food prices are high because of high fuel prices and some oddball things (a wheat fungus for example), along with a bit of food shortage fear of various gov’ts (such as China and India). — the bubble is driven by those things, the problems not created by speculators.

Now, a Commodities Conundrum
The Washington Post | April 30, 2008 | Steven Pearlstein
Posted on 05/23/2008 9:32:18 PM PDT by gleeaikin
http://www.freerepublic.com/focus/f-news/2020588/posts

[happygrl]

Thanks for the ping!

[happygrl]

The only meaningful reform is to increase supply by reducing restrictions on drilling, enabling construction and expansion of refineries, and reducing unnecessary gasoline blends and environmental restrictions (draconian reductions in sulfur content in diesel). Supply reform is for the children!

Here, here!!!!

[gleeaikin]

I heard bits and pieces of the Monday testimony before Congress. The trucking industry and airline industry had plenty to say on the subject. I did not get to hear the rest. Does anyone have some good links on this hearing and will it continue tomorrow?

[SunkenCiv]

I don’t. I think the focus needs to be kept on OPEC (which fixes the oil price and production), as well as the Chinese and India, both of which are experiencing large and rapid growth in oil consumption; not only is there obvious competition with those economies, but also the Kyoto B.S.

[SunkenCiv]

The Bum Rap on Biofuels
American Thinker | 5-13-08 | Herbert Meyer
Posted on 05/14/2008 3:59:06 AM PDT by Renfield
http://www.freerepublic.com/focus/f-news/2015711/posts

Campaign to vilify ethanol revealed
ethanol producer Magazine | May 16, 2008 | By Kris Bevill
Posted on 05/17/2008 9:22:13 AM PDT by Kevin J waldroup
http://www.freerepublic.com/focus/f-news/2017389/posts

[gleeaikin]

I decided to look a little searching of my own before going to bed and found this link:

http://www.oilwatchdog.org/articles/?storyId=21074

[SunkenCiv]

Thanks. Those analysts are just throwing someone else under the bus. The Middle East wellhead cost in 1972 was $8 a barrel, and OPEC raised the price to $40 and up.

[SunkenCiv]

...of course, it would be nice to throw the peak oil folks under a bus. Not a figurative one... ;’)

[pburgh01]

I would think that the markets would correct this no? This need for more regulation is just more scapegoating and obfuscating by the Democrats who are beholden to the radical left. This ‘speculation’ can and will correct itself, the ice ball effect just like what happened in 2000 with the tech stocks, once the slide starts get out of the way. Crummy economic data is dribbling out daily from China, the US and India. Those double digit growth gains are slowing and some experts think the poop is going to hit the fan after the Olympics in China. They will have to stop stop subsidizing oil so heavily and that will hurt. Will it be 60 bucks a barrel, probably not right away with no efforts on our end to drill but 80-100 could happen pretty quickly. Yes $40-$60 with us brining 1-5 million more barrels on line with oil shale, continental shelf and ANWAR. I was no McCain lover but at least he has some grey matter when it comes to oil besides all the global warming crappola.

[SunkenCiv]

/bingo

The ANWR drilling has been proposed plenty of times, and it needs to be done. Ten years ago the lame assed excuse given by Daschle et al was that it would take ten years to reach market.

IOW...

[gogeo]

Big money does not like to be controlled. None of us wants the government to control our businesses.........but, when you have a product that 300 million people rely on for transportation, clothes, food, etc.........you can’t allow a very small group of money people to take control of it strictly for money purposes without regard to the general public. I hate controls but I see no choice in this matter...

Oh, man...when was the last time that the government got involved, and they were actually there to help?

They would be as successful in trying to repeal the law of supply and demand.

[gogeo]

The typical RAT-controlled Congress’ solution is like peeing your pants in a dark suit...it gives them a warm feeling, but nobody notices!

Close...to paraphrase a Clint Eastwood character, it's like having them pi$$ down your neck, then tell you it's raining.