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To: MNJohnnie; thackney; Eric in the Ozarks; Smokin' Joe
You and I will have to debate that sometime, m'friend. There is precisely no doubt that demand for ''paper oil'', i.e. futures & swaps held and kept outside the world of physical oil, has pushed and is pushing the energy mkts well above straight S/D value.

As to ''no reputable person who actually has a professional background in these field(sic)...''

No offense, but you're quite wrong in this sentiment. I've 30+ years in crude and energy-related mkmts and businesses, and I say exactly that, exactly what Engdahl says -- the only question is ''how much has the price been driven out of whack by the big specs?''. I'd say, depending upon one's assumptions, anywhere between $40 and $70/bbl.

I suggest you consult with thackney, Eric in the Ozarks, Smokin' Joe, and our other FReeper colleagues who work daily in the ''awl bidness''. I believe you will find that they -- all of them, to a man -- also consider that one heck of a chunk of crude's current price is not due to ordinary physical S/D conditions. (And apologies, gents, if I've misspoken about any of your views!)

FReegards!

21 posted on 05/18/2008 1:03:58 PM PDT by SAJ
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To: SAJ
SAJ! Good to see you.

OK, 1st off the article states “60% of the price of oil is speculation...”

To which I said was “Notice all his sources are anonymous? That is because no reputable person who actually has a professional background in these field would say such such ignorant crap.

Now to the point. You are going to argue that more then 50% of the price of oil is speculative and does NOT have anything to do with the fact that despite over 15 years of steadily increasing demand around the world which we have to then combined with a 50% decrease in US production since 1986, the issue is NOT supply driven? Where is all the extra supply coming from? OPEC has a production cap in place. We aren't producing it. Where is it coming from that all these nasty speculators are bidding up?

http://tonto.eia.doe.gov/dnav/pet/hist/mcrfpus2m.htm

22 posted on 05/18/2008 1:22:54 PM PDT by MNJohnnie (http://www.iraqvetsforcongress.com ---- Get involved, make a difference.)
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