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Posted on 04/21/2011 1:19:52 PM PDT by MissesBush
There is manipulation of the market. It is the FED! They printed a bazillion pieces of paper backed by unicorn farts. And as we all know, unicorn farts don’t go as far as they used to.
I would also add, there is money to be made in many other commodities as well as in the equity markets. The incentive to speculate on oil isn’t as readily present as it was back in 2006-08. This is a small part of the current problem. The real cause is a recoverying world economy squeezing demand and unrest in the Middle East. If the US had more of its own supply, those factors wouldn’t be having such an impact here in the US.
Still waiting for someone to get on Bumma’s face, IN PUBLIC and call him what he is, A LYING SACK OF $H-T!
The trading tactics described in your linked article could only affect prices by a fairly small amount for a few days at most. Long term oil pries are determined by current supply and demand, trends in supply and demand growth expected for the next few years, and perceived geopolitical risks to oil supplies. Right now total excess oil production capacity is at most only about 6% of current consumption. In my view, that’s the tightest supply/demand balance of any major consumer product in the world.
The main reason for that tight balance is simply that it’s so technically challenging and costly to increase oil production in the large quantities that the world needs. In the long term, it’s probably going to be much easier to increase the fuel efficiency of motor vehicles and expand production of biofuels than to increase the production of crude oil.
He can solve it by getting the dollar back to health and stop the speculation. In fact take it off the commodities market altogethr.
They've got a whole bunch of oil and Obama promised we'd be their best customers, yet they're not selling us enough and as cheaply as we'd like. It's all their fault.
Maybe that Kennedy guy I saw on T.V. can reach out to Hugo Chavez and get us some crude on the cheap.
Congress should investigate him for how he manipulates the truth!
Who was it on BOR last night that said go to the commodity futures trading commission? I hate BOR’s show anymore but Obama’s clowns are not smart enough to get out of a paper bag so one of his flunkies stole the idea.
This investigation is so dumb. Speculators actually help to keep the price of oil down by buying it when prices are low (as in early 2009), storing it in oil tankers, and then selling it when prices are higher. That selling into strong oil prices contains the price of oil and prevents event sharper spikes upwards. See my post #24 for the real drivers of long-term oil prices (...which I’m sure you know.)
It's all that Free Fed Money looking for a job.
It can't earn anything sitting on the bank's balance sheet and no borrowers. PLUS the Fed bought every bad debt the Insurance companies and large brokerage houses were holding as well.
All of that money is at the "top" of the system and, due to the consumer being shut down and small business unwilling to invest...it's not gonna go anywhere besides the stock and futures markets.
You had me right until the last sentence. As I said, it's a global oil market. So, even if we obtained our oil only from our own natural reserves, the price of that oil would be entirely dependent on the global oil market.
There are some additional transportation/logistics costs associated with oil importation sure that would be largely eliminated if we only used US oil. But, remember that our two largest foreign suppliers of oil does not come from the middle east, but rather from our neighbors to our direct north & south.
Dunno. Can’t stand that show and do not watch it? The Rays won.
If Obama announced his resignation that would probably bring gas to $2.30 within an hour.
Oh, please Barry, do it for us!
But adding that US oil into the world supply mix, esp. being a stable source of production, would help bring down the world price of oil.
Shadow inventory is not the only problem. Nor is illegal activity in the market. Probably the biggest problem (elephant in the room) is the fact that non users like foundations, universities and unions among others can take huge commodity positions for food and fuel they never have any intention of using. This could be corrected by changing the rules on commodity purchases to restrict the size of commodity purchases by non users. Only end users like airlines (oil), cereal manufacturers (grains), etc. should be permitted to buy large dollar amount futures.
In addition, the president could threaten to pull oil out of the Stragetic Petroleum Reserve (and not even do it) to put a scare into the oil speculators.
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