Oil Speculation

[nobull]

The entire modern retail finance "industry" should be taken out and shot.

They contribute nothing to modern life and are a cancer eating at every country's productive base.

Russia, China and India are booming econmies creating by intelligent socialist planning directed from the central government, but once the the second-rate minds get control they will be screwed like the US and Europe.

You can bank on it.

Comrade Stalin

So stupid you had to say it twice....

 

[BigRob]

You REALLY think speculators have to wait till the oil actually hits the market before the price drops from that cause??? That makes no sense. They know the the oil is going to be released, now is the time to get out of the oil market.

...You have missed my point. Obviously speculators are not going to wait for the oil to come into the market...they are going to speculate on a higher supply, and thus drive down prices immediately...even though technically (at least in this regard) supply has not really changed yet.

My point is speculators can drive up the price of oil, and everyone rants about how horrible speculators are...but speculators can also drive down the price of oil...that is my point.

 

[Rick]

...You have missed my point. Obviously speculators are not going to wait for the oil to come into the market...they are going to speculate on a higher supply, and thus drive down prices immediately...even though technically (at least in this regard) supply has not really changed yet.

My point is speculators can drive up the price of oil, and everyone rants about how horrible speculators are...but speculators can also drive down the price of oil...that is my point.

My point is that with comments like the following:

Yes, President Obama is going to release oil from the reserve, but not a drop of that oil has come into the market, and prices fell dramatically. You cannot really argue that is simply supply driving the price down, because that supply has not come into the market yet. In reality, prices are falling (among some other factors) because people are simply speculating on future supplies, which is driving down the price.

you seemed to be implying supply doesn't matter, just speculation matters. But speculation is driven by perception of future supply.

 

[BigRob]

My point is that with comments like the following:

you seemed to be implying supply doesn't matter, just speculation matters. But speculation is driven by perception of future supply.

Well, I do agree that speculation is entirely driven by perception of supply/demand etc...it appears we agree on this issue.

 

[pocketfullofshells]

Well, I do agree that speculation is entirely driven by perception of supply/demand etc...it appears we agree on this issue.

some oil excs seem to not agree with you..

also odd how it was like 4 a gal...then Obama pushed the the Government to look into speculators and gas price fixing more...also a few got charged even...and since then it went down about 50 cents....At the time of the year when normally its going up..not down..

 

[Rick]

some oil excs seem to not agree with you..

also odd how it was like 4 a gal...then Obama pushed the the Government to look into speculators and gas price fixing more...also a few got charged even...and since then it went down about 50 cents....At the time of the year when normally its going up..not down..

It was the release of 30 million barrels of oil from the strategic oil reserve.

 

[TruthSeeker]

It was the release of 30 million barrels of oil from the strategic oil reserve.

You ARE kidding, right?

 

[BigRob]

some oil excs seem to not agree with you..

also odd how it was like 4 a gal...then Obama pushed the the Government to look into speculators and gas price fixing more...also a few got charged even...and since then it went down about 50 cents....At the time of the year when normally its going up..not down..

I suppose slowing economic growth in developed countries, weaker demand for oil and gas and this week's decision by the U.S. and other countries to release a total of 60 million barrels of oil from strategic reserves had nothing to do with falling prices...

If you really follow the oil market, you would quickly see that President Obama's speculator witch hunt has a total impact of zero.