Posted on 06/19/2008 6:12:21 AM PDT by jveritas
US regulators have announced plans to impose limits on oil trades overseas.
The US Commodity Futures Trading Commission said the London-based electronic exchange would have to comply with US rules.
The move comes as oil prices notch up record highs, amid fears that speculators are distorting the market. As a result, fuel costs have shot up hitting the global economy. Airlines have been hit badly, with near record losses expected for 2008 in the US.
US airlines were forecast to report $10bn (£5bn) of losses this financial year as sky-high fuel costs erode profits, according to the industry group Air Transport Association (ATA).
Oil prices slipped from their record highs near $140 a barrel reached during Monday trade as investors were cautious ahead of plans by Saudi Arabia to increase production in July.
US sweet, light crude finished down 60 cents at $134.01, while London Brent settled 99 cents lower at $133.72.
Read more at:
http://news.bbc.co.uk/2/hi/business/7460310.stm
Why stop there?.................
Right ION! :)
I have studied earlier that it was our Republican Congress and Senate which compelled lending institutions to loan to subprime borrowers. Not the dims.
You are great at research, and I can't back up that previous paragraph, so if you run across anything, ping me if you would?
6% for “Distribution & Marketing”?....If there’s one thing the oil companies don’t need to do, it’s advertising.............
About 1.2 billion bbls of completely artificial ''demand'' involved in this little scheme right now.
There is no retail profit margin in gas. Because there are so many convenience stores etc almost everyone has to sell gas at or near cost to keep people buying there. If the price is too high, people go elsewhere to buy. Gas is a loss leader used to bring people into the store to buy the profitable goods.
The only people who make any money on gas are the State and Federal Government. They make up to $.60-80 a gallon.
OK, $1...lol
SAJ's and Todd's input will be most welcome.
“That would put a stop to those looking to make a quick buck off of our backs.”
Sounds like you buy this malarkey.
The fact that McCain's aware of his economics ignorance hasn't kept him from accusing futures traders of adding nothing to the economy. That's the good news. The bad news is that Obama's worse.
It's not a simple solution at tis time and the adjustments for the American public are painful and are going to continue for a while.
If the wholes price drops soon to under $100....that will help a lot for the domestic and global economy. In the meantime....keep drilling!!
Re #47. Agree!!
“That would put a stop to those looking to make a quick buck off of our backs.”
And if you think speculating is an easy way to make money, why not give up your day job? I’m keeping mine.
We are so bleedin' screwed.
Man just give up that populist crap. Noone is making anything off your back or anyone elses. Speculation is a natural part of the market, for one, and people LOSE big money doing it as well make it. Ever heard of Amaranth ? A big hedge fund SPECULATING in ENERGY that lost $7B in a week and had to close its doors ?
Speculators provide liquidity to the market, ie, make the markets more efficient. They do not artificially inflate the price. I certainly don’t hear anyone complain when speculators drive the price down in order to profit from the decline. Except if it’s your stocks, and then it’s again SOMEONE EVIL ELSE’s fault (ie, someone who made money and you didn’t). That’s just bull$hit.
That's the crap that needs to be reeled in soon.
It's a shame the LSM and local news doesn't do anything to bring this out into public view more!!
The f'n LSM can pound a Britteny story for a month every broadcast, but, Noooo!!!, nothing about the truth of the recent legislation implemented for 'legal' commodities speculation and manipulation.
People are nuts thinking there is not a colluded conspiracy in place with the recent spikes in food and energy.
Why is it the Congress allows (votes)such crap and who's minding the store????
Yeah actually they do. IF you don't advertise and the other guy down the street does, most of your customers will go to the other store. Americans like to think they are savey consumers but that fact is the average American is wholly manipulated by the media.
Give them an IOU.
We have a bingo. What will it take to get them out of this market? I’m tired of supporting a bunch of CALPERS pensioners & bureaucrats.
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