Posted on 06/21/2008 5:26:49 AM PDT by kellynla
ping
Maybe we will be looking at BO finishing his second term ( notice he didn't say "last") in 2016.
I am invited by my propane supplier, a commodity he provides that heats my house, to purchase a full tank in the early fall at whatever price at that time.
My challenge is to decide whether to wait until the foul weather is about to come upon and THEN purchase that full tank.
Which makes me, I admit with absolute shame, a speculator.
Last year I chose the early fall option and saved a quarter a gallon as the price rose come the time to use the stuff.
What will congress do to me? I am very concerned.
I’ve just assumed when the merchant banks resolve their mortgage indigestion via the oil runup...all will quiet down in the oil markets.....
Are you planning to resell your propane?
If not...your not a speculator. You are a planner. Big difference.
Its going to be very hard to rein in the futures traders. If you rememeber, before oil started trading on the NYMEX in 1983, OPEC set the price of crude oil. At that time it was very common for OPEC countries to “leapfrog” each other to set higher prices...and that was when the oil glut was beginning. If they “leapfrogged” in the early 1980’s when supply outstripped demand, can you imagine what would happen now with demand outstripping supply.
The other problem with regulators trying to control trading on the NYMEX is that if traders/speculators aren’t able to get what they want on the NYMEX they will simply trade for oil on other exchanges. There are many exchanges in the world and some are poorly regulated. Do we want to drive the oil traders to those exchanges?
The reality is that international trading on the markets is still the best way to price the benchmark crudes. If regulators try to play games with the system we might go from a state of expensive oil to oil shortages.
What if one of the speculators name is George Soros?
I don’t trade Oil Futures but I do know that the supply for the last three years was pretty flat and hadn’t started to move up substantially until this year while demand over the last five years had continued to rise. I also know there are trading limits on the Oil Futures Market and we all know that it is just as easy to lose money in the Futures Market as make it.
But there is nothing more effective to eliminating high prices than more supply.
DRILL HERE. DRILL NOW!
Currently, a future contract of $110,000 in oil can be purchased with as little as $7,700. Investing on oil futures is one thing. Using a 10 percent margin is gambling. Forget regulation, just make this 50% of the investment and the speculation problem will go away.
“Barclays Capital, noted that index investing represented no more than 2 percent of the worldwide energy market. And most of the new money flowing in this year went into various types of funds that were as likely to sell commodities as buy them.”
http://www.nytimes.com/2008/06/21/business/21oil.html?_r=2&oref=slogin&ref=business&pagewanted=print
I am not sure about this because China and many others subsidize cheap fuel - where do they get the money to do that?
“I am not sure about this because China and many others subsidize cheap fuel - where do they get the money to do that?”
From Mao-Mart & Target customers.
And have you checked where your PC and/or flat screen TV was made? LOL
Funny you should say that, I hear he’s being brought in as a witness to DENOUNCE the oil speculators. This from a man who speculates in currency and manipulates nations’ economies.
In most cases, oil exporting nations are the ones that subsidize cheap fuel. They figure that if they are already selling their oil on the world market (and making huge profits) they can shift some of those profits into cheap fuel domestically. Its a way to keep the natives from getting restless while they are selling oil to folks they don't particularly like.
In China's case, the subsidies started in the 1980's when China was a net oil exporter...and when few in China could afford cars. In 1993, China's consumption outstripped its demand and they became a net oil importer. They are now the 3rd largest oil importing nation in the world...but the tradition of providing fuel subsidies has been hard to break.
About 5 years ago, Indonesia became a net oil importer (after being an exporting nation for decades). Since then it has reduced its subsidies twice and seen massive demonstrations from the citizens. Indonesia is rethinking everything. They are scheduled to withdraw from OPEC later this year and have promised to gradually eliminate fuel subsidies and reduce their consumption.
Had to go and rain on my parade.
Randolph: "But Mortimer and I would lose our shirts!!!"
Amerikkka never wanted to investigate the $100,000 fortune that Hillary made on a $1,000 investment in pork futures. Nor the $17,000,000 that Terry McAwful made on a $100,000 stock sweetheart deal.
But I agree there is manipulation. Look at MSNBC where they have morons talking about possibly seeing $200 a barrel oil. Better find some NEW chump investors to push the price up so those paying $130 can realize their price...
That gives more credence to the possiblility of a oil bubble burst.
“From Mao-Mart & Target customers.”
Bingo
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