Comments on: Oil Prices Are High Because . . . ??

By: Jimmy

Jimmy — Tue, 24 Jun 2008 00:43:11 +0000

Yea… still beating around the BUSH on the issue for high gas prices. WOW
Pretty good followup to that with the new oil drilling proposal. They shouldn’t do it.. we wont see the effects anytime soon.

http://www.blog.automotiveaddi.....st-for-gas

By: kairosincal

kairosincal — Mon, 23 Jun 2008 22:23:25 +0000

thanks for returning, scarecrow; you’ve been missed.
kairosincal.

By: MsAnnaNOLA

MsAnnaNOLA — Mon, 23 Jun 2008 22:03:07 +0000

Keith Olbermann did an expose on it see link below.

I think it makes sense. The regulations are so loose plus the leverage is so high it is probably easy for a few big players to manipulate. Plus to add to all of it there are all these articles about peak oil, increased demand in China etc to make it look like it is just the market. Maybe it is a little of both, but if 20% of it is speculation that is a 20% that is helping to kill our economy with dreaded inflation. Our whole system of moving goods requires oil. Lots of it. Anything that makes the price go down will help our economy.

http://www.crooksandliars.com/.....-loophole/

By: alank

alank — Mon, 23 Jun 2008 20:08:44 +0000

Pension funds as well are pouring money into commodities. They’re absolutely crazy ape bonkers for doing that, to be sure.

By: STTPinOhio

STTPinOhio — Mon, 23 Jun 2008 20:07:35 +0000

As often happens here, we’ll just have to agree to disagree, which is fine.

In closing, however, I’ll leave you with today’s WSJ, first column, second item.

“Speculative traders’ interest in oil accounts for 70% of all trading in West Texas Intermediate crude on the NYMEX.”

By: alank

alank — Mon, 23 Jun 2008 20:04:44 +0000

Speculators are not the factor that has effected the rapid price rises. Speculators are moderators in all markets. Their influences have a smoothing effect. The radical run-up is more to do with lotsa dollars from hedge funds who’ve moved away from the bubbles in the stock and housing markets to the commodities markets. It’s not just oil, but food as well.

By: BooRadley

BooRadley — Mon, 23 Jun 2008 18:41:40 +0000

Much appreciated.

By: jayackroyd

jayackroyd — Mon, 23 Jun 2008 17:31:35 +0000

where “really believes” means is will to bet a lot of money on it.

By: jayackroyd

jayackroyd — Mon, 23 Jun 2008 17:26:58 +0000

Yes, Scarecrow, we do indeed agree. Personally, I don’t believe in the risk premium. Production levels have been reasonably stable, and I don’t think anyone really believes that the US is going to interrupt Iranian production.

By: Scarecrow

Scarecrow — Mon, 23 Jun 2008 17:22:40 +0000

I think we’re looking at this the same way. And I agree there could easily be a risk premium at work, given the uncertainties — and there are lots of things contributing to those uncertainties — e.g., renewed/expanded wars. Of course, it’s easier to blame “speculators” rather than instability in Nigeria, our foreign policy or threatening statements wrt to Iran from both parties.