Speculators and the Price of Oil

[04 Venom]

An article in the Washington Post, on-line edition, asserts that private speculators have increased their holdings in commodities from $13 billion in 2003 to $260 billion as of the beginning of this year. The largest pension plan in the world, the California Public Employees Retirement System (CALPERS) has $1.1 billion invested and has made a 61% return on investment since last year. About 2 weeks ago, the Wall Street Journal carried an article claiming that when oil was at $135 per barrel, the actual supply/demand price was $75 of the cost, specualtors were adding $30 per barrel, the decline in the value of the dollar accounted ofr $20 and political instability in the Middle East, Nigeria and Venzuela added $10 to the cost.

[snotzs135]

Well tell them to stop that shit and get the cost of oil back down :rolleyes:

[BigBadStang]

Hang them by their balls.

[Black92LX]

The comparison of speculators vs pension funds is comparing apples to oranges.

When it comes to the speculators much of that money is on Credit and not even real money per say.

[04 Venom]

The comparison of speculators vs pension funds is comparing apples to oranges.

When it comes to the speculators much of that money is on Credit and not even real money per say.

The effect on the price of oil is the same whether futures are bought on credit or not. It is real money if you have to cover your losses or realize a profit from a commodity future.

[Black92LX]

The effect on the price of oil is the same whether futures are bought on credit or not. It is real money if you have to cover your losses or realize a profit from a commodity future.

that is correct. but it does not have the same investment return on the holdings as the pension funds.

[02mingryGT]

And then there's this article:

http://online.wsj.com/article/SB121426475050198395.html?mod=opinion_main_review_ and_outlooks


whatever the cause is were screwed. Isn't it just like the American public though to want to blame someone after the fact?

[Blackout]

well I just dont go anywhere much any more. But look at it this way.....TURBO BLUE hasn't went up much if any. I seen it the other day at 5.05 a gal.

[04 Venom]

And then there's this article:

http://online.wsj.com/article/SB121426475050198395.html?mod=opinion_main_review_ and_outlooks


whatever the cause is were screwed. Isn't it just like the American public though to want to blame someone after the fact?

I agree. As much as speculation has increased the cost of oil, there is no way to stop it unless you halt the trading of commodities; the cure then becomes worse than the disease. Both candidates are pandering to the voters because they know that we are suckers for "quick fixes" (like eliminating the $.18/ gallon tax on gas, which is the main source of federal highway construction and repairs) and we'll worry about the consequences later. As painful as it is now, the rapid increase in oil may benefit us in the long run. Unfortunately, it seems to take a crisis for us to pay attention and even then only until for a short period of time. Does anyone think there would have been two wars in the Persion Gulf if there was no oil there?

[Waffles]

"Let our position be absolutely clear: An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force." - Jimmy Carter

And he was even a wussy liberal...

[Timido]

well I just dont go anywhere much any more. But look at it this way.....TURBO BLUE hasn't went up much if any. I seen it the other day at 5.05 a gal.

Where was that at?

[Mustard]

^ Carted was a wussy Liberal that had this country so up side down that he's lucky he wasn't drug out of the White house and beaten. That said, I belive if Obama get the White House he will make Carters 4 years look like a walk in the park. As for our oil crisis. we have to drill for our own oil and make sur ethat the oil we get out of the ground stays here.

[04 Venom]

Carter's four years in office were not overwhelming to be sure, although he did broker the peace treaty between Egypt and Israel. On the other hand, look what he has done with Habitat for Humanity and many other charitable causes since he left office. He is also the only president since T.R Roosevelt to receive the Nobel Peace Prize. Carter is very respected by other governments and often asked to serve as an monitor in foreign elections. All in all, a pretty distinguished career after he left office. What do you think they will say about George W. 35 years after he left office? A hundred years from now, my guess is that Carter will be regarded as an ineffectual president and George W. will be viewed as harmful to the country's interests.

[djom1cincy]

Seen gas for 4.25 today in ky off the florence exit. Bout shart myself. I get home to loveland and its 3.99. Whats up with that?

[Mista Bone]

Thing is, right now we can go drill, the big oil companys already have leases and can start drilling at ANY time.

[92StangMan]

Where is Loveland at?

[djom1cincy]

71n from downtown to 275. East on 275. Second exit, Loveland Maderia / Indian Hill exit.

[92StangMan]

Mapquest shows 43 miles from Burlington, KY. Too bad it's not closer.

[Black92LX]

Thing is, right now we can go drill, the big oil companys already have leases and can start drilling at ANY time.

problem is the sites with land leases currently are guaranteed reserves. So why waste the time drilling where you might hit a reserve when you can go to spots where you know it is.

[Mista Bone]

open water leases is what I speak of.........off shore drilling.

Dunno if I mentioned it here yet, but lets talk sweet vs. sour crude oil production.

Like what we pump out, we cannot refine and have to send back to India and such form them to refine.

Wait, did you think all those tankers that brought us SWEET crude were going home empty?

[02mingryGT]

I agree. As much as speculation has increased the cost of oil, there is no way to stop it unless you halt the trading of commodities; the cure then becomes worse than the disease. Both candidates are pandering to the voters because they know that we are suckers for "quick fixes" (like eliminating the $.18/ gallon tax on gas, which is the main source of federal highway construction and repairs) and we'll worry about the consequences later. As painful as it is now, the rapid increase in oil may benefit us in the long run. Unfortunately, it seems to take a crisis for us to pay attention and even then only until for a short period of time. Does anyone think there would have been two wars in the Persian Gulf if there was no oil there?

Agreed there. If there was oil in Africa we'd be there too. But I understand it and accept it. We need to be where our national interest are threatened. But it does make us look hypocritical when we don't help the people in Africa. Especially when we say were in Iraq for the people.

Oil prices are a help in a way. Companies are either coming back from China or unable to move work there because of the prices. Place I work for, Lund International, the new owners wanted to send all of Auto Ventshade's stuff to China to be made. Too bad for them they found out it was cheaper to produce it in lawrenceville Ga than China.

[02mingryGT]

Carter's four years in office were not overwhelming to be sure, although he did broker the peace treaty between Egypt and Israel. On the other hand, look what he has done with Habitat for Humanity and many other charitable causes since he left office. He is also the only president since T.R Roosevelt to receive the Nobel Peace Prize. Carter is very respected by other governments and often asked to serve as an monitor in foreign elections. All in all, a pretty distinguished career after he left office. What do you think they will say about George W. 35 years after he left office? A hundred years from now, my guess is that Carter will be regarded as an ineffectual president and George W. will be viewed as harmful to the country's interests.

Democrats said the same thing about Ronald Reagan when he was still President. A Nobel peace prize doesn't mean much anymore since they gave one to dipshit Gore. I personally only care about what Carter did while he WAS President. That's what I grade him on. And he sucked.