When you get Olmert or Cheney sabre-rattling on the world stage, threatening war, certain commodities do respond. Seems that it is always the same people who benefit from breathing fear into the people.
All you need to do, is look at the barrels being pumped and the barrels being consumed. The increase in consumption is not within a bezillion points of what the price increase would indicate. Fear mongering, speculation and hoarding. Period.
And Paris Hilton, of course. Maybe a paparazzi shot of Brittany's cooter?
Exactly!! If you ever buy silver bullion or certificates, there is a serial number. Ask for that number. If they won't provide you with a number, they never bought the silver.
Can anyone buy these oil commodities or does it take big blocks of money that only these large Hedge Fund Companies can afford? From what I have read it seems so. I'm not an investor in commodities but I do dabble in NYSE and Penny Stocks. Not that I'm interested either, my thinking this market will take a dive.
But consumption here (US) has had to have gone down. I mean damn Hummer isn't selling anything. That has to compute to at least a certain % of the market
If you have an account, you can trade oil futures. But there are many different types of contracts issued by different exchanges. And since most folks don't want to pay lots extra for data feeds, etc, they limit themselves to one or two exchanges. And if those exchanges don't have oil futures, they don't trade them.
Interestingly enough, ethonal is now considred an agricultural commodity now.
Oil is considered an energy commodity and is traded as both crude and refined products along with natural gas and coal.
I guess you and your fellow drooling little fools are as clueless regarding Commodities as you are with war and politics. Stick to sticks kids! It isn't commodities it's the unregulated trading on ICE! The ENRON Loophole allowed ETF's to move their trading from the Regulated Futures Exchange NYMEX to ICE the Intercontinetal Exchange created just a few months before the CFM Act was signed into law....This spawned the growth of Hedge funds as offspring of all the top Wall St. firms.
Gee and our Government apparently can't control or repair our economy. Bernake, Bush and Hank Paulson all claim to not understand exactly why oil prices are so high. Hank was sharp enough to unseat Jon Crozine as CEO of GS.... and now nothing more then a clueless political hack? Funny how the people in the know and paid to know are clueless clucks like most of you.
To enlighten know it alls!
Oil Prices blame BUSH! For invading an oil producing nation for no apparent reason or as stated in error and turning it into shit. Which creates the shortside of the supply and demand model. This in conjunction with President Bill Clinton and the Commodity Futures Modernization Act ( he signed it) and 181 Democrats and
194 Republicans. and Wall St. and the unregulated Market.
106th Congress / House / 2nd session / Vote 540 Question: On Motion to Suspend the Rules and Pass, As Amended Bill: H R 4541 Vote description: Commodity Futures Modernization Act Vote type: 2/3 Yea-and-Nay Result: Passed, 377-4, with 51 not voting. Date/time: October 19, 2000, 7:02 p.m. Republican majority opinion: Yes Democrat majority opinion: Yes
Enron apparently drafted the Proposal inserted in H.R. 4541 Through Phil Gramm (McLames Economic Advisor)
Two attempts to close the Loophole both appear to be thwarted by Bush. He vetoed the Farm Bill and promises to veto the current Energy Bill.
What's even funnier under Bush, defended ENRON, he also did nothing to stop or even correct the higher energy costs inflicted by ENRON and did nothing when Natural Gas was manipulted to record highs by hedge fund (Amaranth) Gee remember all those commercials swearing how all of our utilitie bills would go down and open the market up to create more competition... bet you clowns drooled and jumped on that line!
What's worse though is our "Carbon Foot Print" carbon credits will soon become the world's biggest commodity market completely unregulated and affect the cost of EVERYTHING! Even to the point of taxing people themselves since we are a carbon product in a carbon based world! It'll make oil look like nothing!
FYI: Shell has already drilled pilot holes in ANWR Alaska. Shell also refuses to release thier findings! As Bush Demands we Drill in ANWR... neglecting his failed war(s) on an oil producing nation Actually 2 nations but Afghanistan's oil isn't as much!
Yet, since 1985, domestic production has gone down 40% while consumption has gone up 30%. It doesn't take a rocket scientist to figure out that if we were to take the restraints off in terms of being able to drill in the US and build refineries, we could solve a significant amount of our problem.
Exactly! We need to depend more on us. I'm all for saving the forests and so on BUT it's time we started drilling at home. These oil prices are about to get us in a bind because we can't or won't produce our own. Alaska may have to give it up to help the rest of th US.
Actually, all you need to believe is that the price is going to go up. Since that is what has been happening for the last few years, it is not an unreasonable belief.
There is clearly a large speculative component in the current oil price. This is good news, because all bubbles burst sooner or later. When that happens, the price will fall far faster than if the price run up was purely supply-demand driven.
When oil was $50 a barrel and people were shouting the sky was falling, one commentator I respect said "$100 oil is not the problem, it is the solution". It will cut consumption and spur development of alternatives. In the meantime, that noise you hear is my wallet screaming in pain.
There doesn't appear to be a dramatic shortage of oil that is driving up the price. There are apparently tankers sitting off coasts filled w/oil. Nor has demand increased in proportion to the price (quintupling in relatively short time).
Drilling won't solve the immediate situation.
We can look at this as a warning for the future, to look for alternatives (although, what's an alternative to plastic?) before it truly becomes a real crisis, or we can have a knee jerk reaction and sully up the planet in our quest for a few more drops.
The USA faced a challenge in gearing up to fight in WWII and we met it. We can look at this as a similar challenge in magnitude (if not even greater), but with a somewhat longer timeframe available to us. How will we respond?
Renata
PS You'll be happy to hear that the powers that be have decided gas will peak @ $4.15 in August. Given that we're already at $4.04, the daily several cent increases that we've been seeing the last several weeks will obviously will stop. Right?
Agreed. A lot of the current price is based on speculation and fear that wars will disrupt the supply. If there was twice the supply, the speculators and hoarders would still drive up the price.
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