Here’s a shocker: More national analysts say speculators are responsible for the current rise in prices, at a time when gas prices historically fall.
Funny how the nonsense about supply and demand has died down, isn’t it?
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Let’s not forget that it was the oil speculators and executives that did more to wreck the economy than did those responsible for the sub-prime mortgage mess.
That, and the traditional print media’s free pass given to said speculators and oil execs. Will stories like this from Gainesville, Ga., do anything to either hold those folks accountable or bring about any kind of change? Absolutely not.
No argument from here, mcs. As I’ve said before, the media’s performance on this story – running to commodities traders for input on the future of oil prices – has been disgraceful.
Using sources who stand to benefit most from the price run-up for a forecast of oil’s future is unacceptably vacant journalism. And it’s been done, locally and nationaly.
Bill – I think it is as much laziness as anything else. Give a reported publish-ready copy and he will happily take it and pretend he did some work. We see the same thing locally with far too much of the business ‘reporting’. A developer hands pretty pictures and text to a reporter and the reporter doesn’t have to break a sweat writing his ’story’
I know the US dollar has been loosing value recently and that will affect oil prices.
Ok, so I read the short article. I’m confused! Did the greedy speculators run up oil prices or drive down the dollar?
I thought this recession was primarily caused by the investment bankers who had valued, bought and sold debt including the mortgages. And that the speculators have been doing their thing for decades.
Well, new developments are significant on their face, Ben, and one can never assume they won’t happen – or happen correctly. Business coverage is never a “one and done” proposition, as WaterWalk illustrates. It’s amusing, actually, how many people want to challenge you because another reporter wrote five years ago that Bass Pro wasn’t coming to Wichita. New facts come out all the time, regardless of the story.
As for oil, this discussion is pretty clear, actually: Speculators are setting the price of a barrel of oil, and those who trumpet the supply and demand canard are trying to protect their personal golden goose.
Now, there are definitely two sides to argue on the speculation issue. However, should the price go higher – toward or to $3 – I’d imagine that the National Retail Federation’s predictions of a moderately down Christmas for retailers will go flying right out the window, replaced by a disaster declaration.
If people have to pay artificially inflated gas prices to line a speculator’s pockets, the economic recovery will be slowed. Significantly.
All of you should quit bitching about oil speculators. When you buy a stock or one lot of oil on the futures exchange is it investing, speculating or gambling?? It’s all the same. Fyi trading oil futures is a zero sum game — that means for every winner there is a loser — net zero effect. If you think the price of oil is overinflated, then go sell it. Put your money where your mouth is!! Oil traders do it everyday!!
Gary Bauer — Singapore — oil trader 25 years
One more thing — the subprime issues, credit default swaps and wall street all had some effect on the latest economic events but if every american had just paid his house mortage on time this would not have happened!! Just another american way over extended on credit!!
Gary Bauer — Singapore
subprimes – I have been struck by the number of people who got suckered by members of their churches etc who were shady morgage brokers. These people simply did not understand the ‘fine print’ of re-sets, negative amortization, etc. Oh well, I guess those who are less able to fend off the sharks should be told it is their own fault for being less shifty than those sharks.
There was an inteesting piece on Frontline where an insider stated that even he could not understand all these exotic instruments. But I suppose that is good – anything to help the Bernie Madoffs of the world to seperate ordinary people from their money is as it should be.
/sarcasm off
Which is exactly what oil speculation is – separating ordinary people from their money for personal profit.
I think the word for that is “greed.”
Sorry, Gary. Until you offer something more concrete than affirmation for the widely-held theory that action against speculation threatens the goose that laid the golden egg, I intend to keep leading those ordinary people to the obvious.
One more thing:
The “zero sum game” comment is laughable. There is no “zero sum game” at the retail pump, Gary, and you know it.
You can do better than that.
There’s another speculator crying “woe is me!” as we try to have a meaningful debate. My point is, who the hell is crying “woe is me!” (and that should be read as a collective “me”) on my behalf when I get bent over at the gas pumps? Sorry, Gary. No sympathy from me, either. If the price of gas wasn’t artificially inflated to line YOUR pockets, I bet a lot of those folks you blast would have been able to pay their mortgages on time. As it stood, the price of gas went up and SO DID EVERYTHING ELSE as a direct result. This nickel-and-diming of the working and middle classes is what caused a lot of otherwise hardworking folks out of their homes. But, as much as nothing I say will likely change your mind, nothing you say will change mine.
I appreciate hearing Gary’s perspective and hope he continues to contribute.
There is speculators in everything. Stocks, commodities, currency and property. Are there nefarious oil speculators? You better believe it.
The Enron trash traders who cried to the press saying they were victims of Ken Lay and Jeffery Shilling are still in the game but into the oil commodities market. They weren’t victims, they were the ones perpetuating and happily engaging in the illicit trading activities when at Enron, but now they found another home, yet everybody looks for the top dog to take the fall.
The dollar loosing value I would say is the greatest contributor to the rising oil prices now. Are there some speculation artificially driving up oil prices? Sure, but not near the amount of what a looking dollar is doing. I mean, within a one week time span, a simple $200 US Dollar transaction to Canadian dollar cost me an additional $30. I wasn’t expecting that!
But our public debt burden is unsustainable, yet I see no leadership is dealing with this serious issue.
By the way, I saw a great documentary on PBS last night about the Stock Market Crash of 1929. Excellent indeed! You can see a much similar parallel of what is going on right now.
PS: I wish there was an edit button.
Sometimes I type too fast and post without re-reading what I have typed. It’s all good. 