Cancel 2016.2
The Almighty
prices are spiking hard... just hit $130 barrel and then pulled back a bit. For those not keeping track... that is up almost 25% in one day.
Oil
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What do you think the reasoning is Chap, seriously? What is going to happen with this bailout?
A weaker dollar.
So, we've already made the prick Top some cash, I see.
nahh, my bet is its speculation of increased demand because wall street loves the bailout plan and thinks it will fix everything.
Oh, the speculators again. Well, that's another unproved mystery we are always hearing about, but what we know is that as the dollar falls, oil rises.
its all speculation. why is the dollar falling? because of speculation that they will pass the bailout and dilute the dollar.
LOL. Ok, that's true.
uscitizen
Villified User
point is that the local gas station's cant decide.. hey hurricane is coming thru and people gonna need gas ill call all the other gas stations and we will raise prices to $8.. they have no choice but to pay. It would be considered price gouging.
Why can oil speculators cause the same effect?
Cancel 2016.2
The Almighty
short squeeze on expiration was a big part... dollar falling apart also played a big role
Cancel 2016.2
The Almighty
why can stock speculators?
Why can real estate speculators?
There is speculation built into every single friggin thing you buy on the market.... stocks, bonds, options, commodities, futures. Same deal with real estate.
If the current fair value for 'x' is $100 and you think it will be at $150 in a year... would you be willing to pay $110 for it today?
As I have stated 1000 times... speculation works BOTH ways. You want to change the direction of the speculation.... then change the future outlook for the security.
what is the line between price gouging and speculation?
Cancel 2016.2
The Almighty
The two are not necessarily related. I own oil in most of my clients accounts. It is a hedge against inflation. But it also is a part of that speculation you are talking about. Many companies that rely upon transportation also hedge. Also a part of speculation. Does that make it the oil companies fault? No.
Price gouging is when you do not have a competitive free market for a commodity etc.. and subsequently a company takes advantage of its pricing power.
There is a free market in oil. Again, if you want to take down the effect of speculation pushing prices above fair value... change the outlook. No one was bitching when the speculation for a stronger dollar and lower oil pushed it quickly from $148 to $150.
What had changed to cause that? Oh yeah, talks and public sentiment being in favor of more local drilling.... which strengthened the dollar and pushed prices down and caused speculators to go from a bullish sentiment to a bearish one.
Then came the bailout talks.... bam... dollar declines and sends oil prices back up. Speculators turned bullish again.
You want that to change... then get the idiots in DC to ....
1) expand Alt energy research and development spending as well as incentives for the individual/businesses to install (meaning the idiots on the right need to be whipped into line).
2) Drill every available, economically viable nat gas and oil site we can... not only would that keep jobs and money HERE, it would also allow us to control the environmental standards on those sites that produce the energy we use. Something we do not have when we rely on foreign energy production. (on this the left needs to be whipped into line)
3) expand our infrastructure to support the use of nat gas vehicles.
All of the above would strengthen the dollar and push commodity prices back down.
Sir Galahad
Christian Socialist Party
Oil up, unemployment up, dollar down and stocks down.... sounds like great news to me. 