Oil Speculators, Here is the Proof.

I have been saying, as usual, that our prices for oil and commodities have been artificially inflated, FOR MORE PROFITS, for the last few weeks. OPEC has not raised their prices, they actually increased output recently. In a truly "free market", this would drive prices down. Watch this video from TRNN (The Real News Network) and see for yourself.
After watching the new documentary "Inside Job", I am no longer amazed, just really disgusted that we do not Unite and stop our corporate masters since obviously, their paid politicians will not.

http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=6391#

"Inside Job", is THE most disturbing Documentary or even film, book,etc..that I have ever viewed. It lays the whole pre-meditated worldwide financial crash, out in understandable format. Very disturbing...

2 sides of a transaction. One speculator will lose and one will win. Also the futures market has to do with what may happen in the future, not now. Today's increase in output is not the deciding factor.

:eyes:

What, precisely, is your point?

Does speculation not drive prices?

to lock in future delivery at a certain price DOES drive prices. Both up and down. A speculator can also profit on a belief that prices go down. Here's a thought: If a huge oil or gas field is about to come on line, the prices based on future supply will drop. Think natural gas and the influx we've seen from shale formations. Or, if a bumper crop of corn, etc. is anticipated, speculators may drive the price down. I guess you like the speculators only when they cause a price drop.

Or what?

Apparently you came into this thread looking for an argument. There isn't one, and I don't waste my time on people trying to pick fights when I don't have to. Bye.

No argument? Are you kidding me? I know a little about the investment markets. I spent 18 years in the business including 9 at Morgan Stanley. Until 2 years ago, I held the following: Series 7, 63, 65, 31, 24. BYE.

You're looking for a fight. There isn't one.

I'm glad you want to talk about what an expert you are. It's just another form of being an 'internet tough guy'.

If you want an actual discussion, grow up, and we'll have one.

and you're the one trying to be an internet tough guy. Why do I bother with idiots like you?

...was traded 26 times, before the final purchaser, the 27th, "locked in" his hedge.

From Matt Taibbi's "The Great American Bubble Machine" article in Rolling Stone, not quite a year ago:

http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405?page=5

"Between 2003 and 2008, the amount of speculative money in commodities grew from $13 billion to $317 billion, an increase of 2,300 percent. By 2008, a barrel of oil was traded 27 times, on average, before it was actually delivered and consumed."

It's Casino Economics.

somebody made money and somebody lost money.

ultimately loses in every one of these transactions. That is why casino capitalism should be illegal.

gain and loss=net 0

just econ class.

Wall Street and Oil Companies made money
Main Street lost money

If there is 10 or 20 times the trading activity than took place a few years ago (when Goldman Sachs opened up the commodities markets to "paper contract" purchasers), then the people who make their money selling to the end-users -- the actual end-purchasers -- are competing with the gamblers. Who have more money (collectively, if not individually) than they do, no fear of wild swings in price, and can make purchases solely in the interests of gaming the system -- churning prices Up or roping in suckers before those prices go back Down, to allow themselves to buy l o w and sell HIGH. No matter what the actual conditions in the market are.

So the 2 % volume of Libyan oil output -- or the potential loss of that relatively small fraction of the world's production, already made up for by other oil-producers increasing their deliveries -- ramps up the greed all out of proportion to the actual, potential effects.

You can see the same kind of thing in reverse, in political pressure to open up oil production in the Arctic Wildlife Refuge in Alaska.

Not that there's anything like the volume of oil in Libya up there, but it ups the ante in the poker game, the psychological warfare of the Big Crap Shoot. (Which has replaced what used to be a vehicle for s t a b i l i z i n g prices.)

"one will lose"..ie..if I buy a car for $1500 (I'm poor), sell it for $1700, to someone who sells it for $2000, I lost money?????? That is exactly why the greedy capitalists should be impaled....what a warped way to think. Mummy and Daddy would be proud.

Is that FDR in your profile?

financial markets have 2 sides to the market.

And just wait until Big Oils' profits are published in the next quarter. They will be huge, again. Without a windfall profit tax, again.

... subsidies to Big Oil, the most profitable industry in the history of commerce.

That was wishful thinking.

...that goes into even more detail about the players behind it all:

Meltdown (part 1 of 3):
http://www.youtube.com/watch?v=p3xsr_W5JwI

I bookmarked it for later. The time change got me today...lol. Just curious, if you were a Proud, ex-trader(?)(traitor?) would you be lurking on DU trying to justify your elitism? Just curious, thanks again.

to use less, then supply would be more than adequate and prices would correct. No argument that it is speculation, but it is at some level people betting that the US will bear the cost and keep buying at the same rate, regardless of price. The easiest way to beat them at the game is to use less.

that the demand for oil in U.S. is not elastic, for many reasons, some just plain old market, some/much manipulated, hence 'standard market response' does not provide a useful expectation. IMO.

...but how can we say that we can't possibly live like the rest of the world? We use so much more per capita than any other country in the world - how can it be so necessary?

In my own case, I switched from driving to cycling three years ago when prices went up in 2008 and have been very happy with the health and the savings accrued. I know that's not an option for some, but for most, realistically, it is an option. Walking is also an option if one makes the time, and public transport is very much under-utilized in most areas. The "Oil Age" began not so long ago, and will end before too long. People managed to live well before, and they will well after.

but I'm a realist, know something about the miserable U.S. media and effect on public opinion, politics, and anti-trust enforcement, which tell me its highly unlikely significant changes will be made in foreseeable future. I don't think the Oil Age will end before too long.