The Real Culprit For Rising Oil Prices.???..and theres plenty of oil......

by chrisjoel 79 Replies latest jw friends

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  chrisjoel

  This has been repeated over and over in the news but what the hell no one will do anything about these assholes...so one more time....Its the speculators, the investors who ....."Institutional investors such as hedge funds and sovereign wealth funds are pouring billions of dollars into not just oil but mamy commodities, distorting markets and driving prices to unprecedented levels.."...and Chinese influence???
  
  While that is a factor, it's only part of the story, said Mr. Masters, a portfolio manager for Masters Capital Management LLC. He cited U. S. government data showing that while annual Chinese demand for petroleum increased 920 million barrels over the past five years, demand from speculators has moved up 848 million barrels over the same period. "The increase in demand from speculators is almost equal to the increase in demand from China," he said.
  
  DO YOU BUY THIS?

  www.financialpost.com/reports/oil-watch/story.html?id=535626

  I mean if this is true ..shouldnt the United States find better investors and speculators so I dont have to spend DOUBLE to fill my god dam gas tank HERE in Canada.???
• 

  zeroday

  DO YOU BUY THIS?

  Absolutely...oil is a commodity anything that can be bought and sold...futures are contracts for a commodity to be delivered at a later date they can be bought and sold till the time of delivery...although it is not the only reason it is a major factor...third world countries with increasing demands the failure of the US to do more domestic drilling it all adds up to the perfect storm...
• 

  zeroday

  I mean if this is true ..shouldnt the United States find better investors and speculators so I dont have to spend DOUBLE to fill my god dam gas tank HERE in Canada.???

  Canada is a major exporter of oil to the US...you have extremely high taxes on anything that moves you need to take this to your Government...
• 

  chrisjoel

  But why now? Why didnt investors speculate so heavily say 15- 20 yrs ago?
• 

  moshe

  We had a big oil price shock back around 1979-82. Gas prices went through the roof. The medicine was painful, but 12% interest rates took all the wind out of oil prices. The same treatment would probably work again. High interest rates would siphon most of the money out of the commodities market and the strong resssion caused by the interest rate increases would cut consumption.
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  zeroday

  But why now? Why didnt investors speculate so heavily say 15- 20 yrs ago?

  Because 15-20 years ago the worlds demand for oil was much lower than now...as a commodity in high demand now the buyers are all rushing to the sellers and the price goes up...supply and demand simply...spectulators are merely the middle men skiming the profits off the top in a high demand commodity...free marketing at its lowest...
• 

  shamus100

  They did. Unfortunately, the market did not permit drilling or alternative oil, such as tarsands feasible. It's all a part of our 'great' democracy.

  I share your pain - I filled up today and was not impressed with the bill.
• 

  zeroday

  YEP I filled up today 17.5 gallons $72 US dollars...about pissed my pants...
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  chrisjoel

  Does the US really have to depend on other countries for oil? ..Im being forced to think about these issues i really dont know that much about...and also the canadian dollar is high does this have anything to do with the issue? Wouldnt it be better if we all had the same currency if it meant we have lower prices on oil?
• 

  shamus100

  Yes, it is my understanding that the Canadian Dollar is high because of oil, and also because of the sagging U.S dollar. Those two combined have raised our dollar up so high, causing all the manufacturing jobs to disappear. The new word is manufacturing will start to pick up again, due to the high fuel prices - it is no longer as economical to have things made in China.

  As per changing our currencies, I don't see how that is even possible. Personally, I am not going to have U.S. dollars in Canada. Not a hope in hell.