cawacko
Well-known member
there are a lot of smart people that work in the industry that have different views that the author you posted.
Study blames speculation for oil's rise
- Thread starter LadyT
- Start date
there are a lot of smart people that work in the industry that have different views that the author you posted.
cawacko
Well-known member
Nor will trying to regulate speculation. Congress cannot regulate it across the globe and it will not stop volitility in the market.
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The Almighty
No, it didn't.
This genius stated... well a lot of money went in and thus prices went up, then a lot of money came out and thus prices went down.
Total Captain Obvious award winner. Hands down. No competition.
But WHY did the large sums of money go in? What changed at the start of the year????
Oh yeah... the Fed cut rates hard and fast in January... which sent the dollar plunging... which does what to commodity prices?
What happened right before oil prices came crashing down?
Oh yeah... the world was concerned with inflation... demand for oil went down as people tightened their belts... future supply and demand was bearish in that everyone began talking about more drilling and more alt energy development
cawacko
Well-known member
My mistake.
Well seeing that the author of the study is taking a hit on his hedge fund from high oil prices maybe he had something to gain by his testimony and is only looking out for his economic interest and not the real truth?
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The Almighty
yes, but WHY did that money pull out?
There are REASONS cash flow shifts. saying it was because of cash flow is an idiotic simplistic line of crap. Though I would imagine this idiot was paid to do this study by the government. A Government intent on blaming speculators. Imagine that... he came back with a report blaming speculators.
Perhaps 60% of oil prices today pure speculation
http://www.globalresearch.ca/index.php?context=va&aid=8878
The Danger of Speculation
http://www.foxnews.com/story/0,2933,166038,00.html
http://money.cnn.com/2008/06/24/news/economy/oil_legislation/?postversion=2008062413
and my favorite:
http://www.tri-cityherald.com/915/story/202563.html
But George Soros and Gerry Ramm delivered the same message Tuesday to the Senate Commerce Committee -- rampant speculation has helped spur out-of-control crude oil prices.
In the measured tones of high finance, Soros, whose hedge fund by some accounts made $3 billion last year, talked about a "speculative excess" and warned the run-up in oil prices could drag the United States into a recession.
Kamala Trump
Verified User
Talk of drilling our resources. Plain and simple. and pre-election manipulation of course.
I don't think they can do it alone. The good thing is that no country wants high oil prices. This is the exact arena that I think Obama can make a huge difference. Partnering up with other exchanges and collectively regulating grain and oil futures.
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The Almighty
I have ample knowledge on the oil sector. This "study" (at least the conclusion in the article) is a joke. It is a simplistic piece of shit. Money doesn't just flow based on whims. There are supply/demand issues that will drive speculation.
Speculation occurs EVERY time we buy/sell a stock, bond, commodity, home, car etc....
Speculation can cause a security, commodity etc.. to be either undervalued or overvalued based on perceptions of what will occur in the future.
Kamala Trump
Verified User
So you admit the price is determined by speculators. WTF are you going on and on about?
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The Almighty
The only people ignoring the impact of speculation are the ones that are pretending that speculation only works to drive prices ABOVE fair value. Speculation works BOTH WAYS. Which is why when the fundamentals changed, speculation on oil and nat gas went from bullish to bearish.
Nat gas prices are HALF of what they were a few months ago.
Oil prices are about two thirds of what they were a few months ago.
SPECULATION drove these prices DOWN because the fundamentals changed.
And I asked about it because I don't have time at the moment to read the article.
What does it "blame" for the recent drop?
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The Almighty
so what you are saying is that you do not want the ability to protect yourself from rising energy prices?
Regulating the futures market is the single dumbest idea I have heard from the idiots in DC.... and THAT is saying a lot.
Why not extend that stupidity on to stocks and bonds as well???
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The Almighty
It says cash came out of oil futures.
Yeah government hacks like George Soros.
Kamala Trump
Verified User
Where did anyone pretend that? Senor Strawman.
Wow. Well... that's very exciting. Did they note the rise of the dollar? Did they inform of any of the other reasons that would make speculators start to remove money from futures? Or did they just assume that ignorance would make it an emotional issue and people would work to punish speculators?