Are the oil price manipulators back?

Ran across this interesting piece from Business Week, which doubles as a fairly strong indictment of business journalism. Sounds like the efforts to force gas prices back up are under way – again.

And, it reminds me of one of my pet peeves about television journalism: During the runup to $4 a gallon gas, invariably you’d find a TV reporter sitting in front of a commodities broker asking them the future of gas prices.

And equally invariably, the answer would be $5 a gallon. Or $6. Or $7. Or something typically self-serving.

Asking a commodities trader about the future of gas prices is a little bit like asking John Dillinger for a projection on bank robbery numbers nationwide.

4 Comments

  1. Posted April 22, 2009 at 10:12 am | Permalink

    Good analogy Bill.

  2. desuhu
    Posted April 22, 2009 at 12:31 pm | Permalink

    Amen to the above analogy. I wish they’d ban speculators from Wall Street. All they do is run up prices on certain commodities or stocks for a while, then sell and take their profits and leave everyone else hanging. They’re absolutely going to ruin it for the average investor. I certainly won’t invest in Wall Street again, unless they pass some very stringent laws regarding speculators and trading companies.

  3. Bill Wilson
    Posted April 22, 2009 at 12:46 pm | Permalink

    The current administration is on the record pledging that kind of speculation won’t be allowed to run rampant again. I shudder to think what the impact of $4 gas would have on an already-reeling retail sector.

    It’s another example of greed worth watching.

  4. mcs7584
    Posted April 22, 2009 at 4:32 pm | Permalink

    Another good example of why we need newspapers.

    (Oh, who am I kidding? No one’s even listening … they’re all off getting their “news” from TV and Internet blogs.)