Goldman Sachs (GS) fears that speculation is causing a dangerous spike in the price of oil. In fact, the head of commodities trading at the investment bank is so worried that he advised clients this week to cash in their profits before the bubble pops, noting in a report that the sector shows "record levels of speculative longs [trading] in crude."
This is, to put it mildly, an unusual admission from Wall Street's preeminent casino. The official position of securities traders, hedge funds and other market players has been that speculation doesn't affect oil prices, including prices at the pump.
Quote:
President Obama is not responsible for high gas prices at the pump. 64% of the oil futures contracts are in the hands of speculators who will never take delivery, and only 36% of the contracts are owned by the producers and users - do your homework!
Hmmm
[SIZE5"]Power kills speakers ... not waveform shape. ~ werewolf[/SIZE]
Looks to me like the perfect storm for speculation, I mean the government is doing everything it can to boost up the banks it bailed out and who owns their own storage facilities and oil pipelines....yep, big banks. Who else is handing them 0% money to own millions of foreclosed homes, or speculate on futures. Not like banks can make money on interest lol. Then you have a dead economy with all this money all over the place, what else is there to do but play with commodities. Stocks (excepting apple and the like) don't do anything in a weak economy and the good ones are already bought up, bonds have terrible low rates, what else is left. To top all that off the US is anti oil and paying China to buy cars like crazy, the EU is a mess, and you have the typical Middle East nuts doing their usual. Sure is funny to see people talk about that evil oil getting tax breaks. Whatever they get, the second they have to pay a penny more it will show up at the pump for us to pay, so what is the point here. Oil company is the largest corporate US tax payer so how are they getting out of it. I don't see where that factors into our problems, how about currency devaluation....how about Keynesian economics that make prices for the people go up in a weak economy. But what do I know, ok I know it is not working so well after years of it lol.
Pioneer 880PRS~boston comps/alpine coax on Kappa 4 Z~back to Alpine mrd-m500 v12 on pyle 15s IB
Are oil prices really that high? I am surprised to hear this seeing people cruising around in large RWD sedans with 6 liter V8 engines and grocery shopping in Chevy Suburban SUVs and Ford F250 trucks. I chuckled today when I saw a Jimmy Johns sandwich delivery vehicle, a mid-2000s Ford Explorer SUV.
Anyways, I wouldn't place all the blame on oil "speculators". It takes two parties to enter a futures contract. If the futures prices are high, then that reflects the beliefs of the oil traders AND producers. If the futures prices are "too high", that condition should not exist for too long. And remember, it takes the third fool to keep the oil prices high, the consumers. If consumers are willing to pay the "high" prices and buy petroleum products in sufficient quantities to clear the market, then why blame the "speculators"? It seems like they were right to bid up the prices. If the prices are too "high" for consumers to bear, then they will not be able to buy the available supply of oil, and the prices should go down. If there is anyone who can truly manipulate the oil prices, it's the producers. However, I don't think there is evidence to show that the current oil prices are the result of producers restricting oil supply today. Most of them export as much as they can pump out of ground.
A lot of people simply have a hard time accepting the truth that world's consumption of oil is growing much faster than the actual production. Politicians will always try to blame high oil prices on something very tangible, something that they can correct if they get into the office.. just please vote for them. yeah. The most ridiculous of all beliefs and promises is that drilling more for oil in America will do squat for oil prices on the world market. America imports most of its oil and drilling for oil domestically will never change the fact that its oil prices are dictated by the global demand and supply. By all means, if the costs and benefits are favorable, drill for it. But it will take years to figure out where to drill, and then actually drill and get the product to the market. And it still won't make a dent.
A decade ago, fuel wasn't even among the top 25 exports. [ 10 years ago or 1990's ].
Quote:
Originally Posted by ZAKOH
America imports most of its oil and drilling for oil domestically will never change the fact that its oil prices are dictated by the global demand and supply. By all means, if the costs and benefits are favorable, drill for it. But it will take years to figure out where to drill, and then actually drill and get the product to the market. And it still won't make a dent.
Quote:
Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. It will also be the first year in more than 60 that America has been a net exporter of these fuels.
Just how big of a shift is this? A decade ago, fuel wasn't even among the top 25 exports. And for the last five years, America's top export was aircraft.
I wonder why we would import it and then export it
Could this be a possibility >>>> ( $$$$$$ )
Is making money what a speculator is interested in
[SIZE5"]Power kills speakers ... not waveform shape. ~ werewolf[/SIZE]
TransCanada on Track to Resubmit Keystone Application
Company plans to publish alternative route around Nebraska Sandhills in next few weeks.
HOUSTON -- The company proposing to build a pipeline from Canada's oil sands to the U.S. Gulf Coast expects to resubmit its application for a federal permit in five to eight weeks, Alex Pourbaix, president of energy and oil pipelines for TransCanada Corp., said March 6.
Alberta-based TransCanada expects to publish potential alternate routes for the proposed Keystone XL pipeline in the next few weeks, said Pourbaix while speaking with reporters at the IHS CERA Week energy conference in Houston.
The company has reached an agreement with the state of Nebraska over what constitutes the Sandhills, the area in dispute over environmental concerns.
Pourbaix estimates the proposed alternate route will move the pipeline an additional 100 to 120 miles.
Assuming the company receives a presidential permit following the election in 2013, the project is still expected to take two years to complete even with construction on the southern portion underway, Pourbaix said.
Good news ^^^^^
[SIZE5"]Power kills speakers ... not waveform shape. ~ werewolf[/SIZE]
It's not the price of oil thast has gone up, it's the value of the dollar that has gone down. An ounce of gold today would buy roughly the same number of gallons of gas that it would have 20, 30 or 40 years ago. The US govt of late has been too busy printing worthless money to notice the REAL effects.
I disagree with liberals/progressives/marxists (LPM's), therefore I am trolling. I disagree politically with pretty much everything that comes out of Obama's mouth, therefore I am a racist. Hmm ... easy to see who sees the world in black and white terms.
Not anymore. The price of benchmark crude has dropped about $8 per barrel since early April. Retail gas prices have followed, falling 17 cents since reaching $3.936 on April 5.
"It's almost like a tax cut," said Jared Bernstein, a senior fellow Center for Budget and Policy Priorities. EIA's prediction means that motorists will spend about $10.7 billion less on gasoline than previously anticipated.
[SIZE5"]Power kills speakers ... not waveform shape. ~ werewolf[/SIZE]
Why high prices ( OIL )
[SIZE5"]Power kills speakers ... not waveform shape. ~ werewolf[/SIZE]
Linear Mode
