Home › Forums › Financial Markets/Economics › Gas prices this summer
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May 27, 2011 at 1:50 PM #700628May 27, 2011 at 2:30 PM #699461
Arraya
Participant[quote=afx114]WikiLeaks cables show speculators behind 2008 oil bubble
Well, thanks to Wikileaks, we now know that when the Bush administration reached out to the Saudis in the summer of ’08 to ask them to increase oil production to lower prices, the Saudis responded by saying they were having a hard time finding buyers for their oil as it was, and instead asked the Bush administration to rein in Wall Street speculators.
[/quote]The Saudis are doing all kinds of things from a production enhancement standpoint that one would only expect them to do if their oil fields were in a lot of trouble. However, Saudi Arabian reserve and production data are state secrets. They are secret for a strategic reason. In other word, SA will always blame speculators if they have trouble meeting demand.
May 27, 2011 at 2:30 PM #699557Participant[quote=afx114]WikiLeaks cables show speculators behind 2008 oil bubble
Well, thanks to Wikileaks, we now know that when the Bush administration reached out to the Saudis in the summer of ’08 to ask them to increase oil production to lower prices, the Saudis responded by saying they were having a hard time finding buyers for their oil as it was, and instead asked the Bush administration to rein in Wall Street speculators.
[/quote]The Saudis are doing all kinds of things from a production enhancement standpoint that one would only expect them to do if their oil fields were in a lot of trouble. However, Saudi Arabian reserve and production data are state secrets. They are secret for a strategic reason. In other word, SA will always blame speculators if they have trouble meeting demand.
May 27, 2011 at 2:30 PM #700140Participant[quote=afx114]WikiLeaks cables show speculators behind 2008 oil bubble
Well, thanks to Wikileaks, we now know that when the Bush administration reached out to the Saudis in the summer of ’08 to ask them to increase oil production to lower prices, the Saudis responded by saying they were having a hard time finding buyers for their oil as it was, and instead asked the Bush administration to rein in Wall Street speculators.
[/quote]The Saudis are doing all kinds of things from a production enhancement standpoint that one would only expect them to do if their oil fields were in a lot of trouble. However, Saudi Arabian reserve and production data are state secrets. They are secret for a strategic reason. In other word, SA will always blame speculators if they have trouble meeting demand.
May 27, 2011 at 2:30 PM #700288Participant[quote=afx114]WikiLeaks cables show speculators behind 2008 oil bubble
Well, thanks to Wikileaks, we now know that when the Bush administration reached out to the Saudis in the summer of ’08 to ask them to increase oil production to lower prices, the Saudis responded by saying they were having a hard time finding buyers for their oil as it was, and instead asked the Bush administration to rein in Wall Street speculators.
[/quote]The Saudis are doing all kinds of things from a production enhancement standpoint that one would only expect them to do if their oil fields were in a lot of trouble. However, Saudi Arabian reserve and production data are state secrets. They are secret for a strategic reason. In other word, SA will always blame speculators if they have trouble meeting demand.
May 27, 2011 at 2:30 PM #700643Participant[quote=afx114]WikiLeaks cables show speculators behind 2008 oil bubble
Well, thanks to Wikileaks, we now know that when the Bush administration reached out to the Saudis in the summer of ’08 to ask them to increase oil production to lower prices, the Saudis responded by saying they were having a hard time finding buyers for their oil as it was, and instead asked the Bush administration to rein in Wall Street speculators.
[/quote]The Saudis are doing all kinds of things from a production enhancement standpoint that one would only expect them to do if their oil fields were in a lot of trouble. However, Saudi Arabian reserve and production data are state secrets. They are secret for a strategic reason. In other word, SA will always blame speculators if they have trouble meeting demand.
May 27, 2011 at 5:29 PM #699491CA renter
Participant[quote=Rich Toscano]Speculators can contribute to short-term spikes and drops (eg they surely played a role in the rapid 2008 runup to $147 and subsequent crash to $34).
But they aren’t responsible for the general trend towards high oil prices that we’ve seen this decade. Global oil production has basically not increased at all for 5 or 6 years against a trend of increasing global demand.
Speculators, along economic booms and slowdowns, can cause a lot of volatility around the underlying upward trend in oil prices. But they aren’t responsible for the trend itself… the “blame” there lies with the inability of oil production to keep up with rising demand.[/quote]
Agreed, the oil supply is dwindling, and the demand is rising, but the damage done by speculators who are betting on this trend in the interim is greater than the trend itself (IMHO). Like CG stated above, this is what revolutions are made of.
If I were Empress of the Universe, I’d raise margin requirements for commodities trading (or ban commodities trading on margin, entirely), and immediately reduce and regulate the number of people who could trade, who were not producers or wholesale consumers of the commodities. Joe Smith, the hedge fund guy (and his compatriots) should NOT be allowed to move commodity prices.
May 27, 2011 at 5:29 PM #699587Participant[quote=Rich Toscano]Speculators can contribute to short-term spikes and drops (eg they surely played a role in the rapid 2008 runup to $147 and subsequent crash to $34).
But they aren’t responsible for the general trend towards high oil prices that we’ve seen this decade. Global oil production has basically not increased at all for 5 or 6 years against a trend of increasing global demand.
Speculators, along economic booms and slowdowns, can cause a lot of volatility around the underlying upward trend in oil prices. But they aren’t responsible for the trend itself… the “blame” there lies with the inability of oil production to keep up with rising demand.[/quote]
Agreed, the oil supply is dwindling, and the demand is rising, but the damage done by speculators who are betting on this trend in the interim is greater than the trend itself (IMHO). Like CG stated above, this is what revolutions are made of.
If I were Empress of the Universe, I’d raise margin requirements for commodities trading (or ban commodities trading on margin, entirely), and immediately reduce and regulate the number of people who could trade, who were not producers or wholesale consumers of the commodities. Joe Smith, the hedge fund guy (and his compatriots) should NOT be allowed to move commodity prices.
May 27, 2011 at 5:29 PM #700170Participant[quote=Rich Toscano]Speculators can contribute to short-term spikes and drops (eg they surely played a role in the rapid 2008 runup to $147 and subsequent crash to $34).
But they aren’t responsible for the general trend towards high oil prices that we’ve seen this decade. Global oil production has basically not increased at all for 5 or 6 years against a trend of increasing global demand.
Speculators, along economic booms and slowdowns, can cause a lot of volatility around the underlying upward trend in oil prices. But they aren’t responsible for the trend itself… the “blame” there lies with the inability of oil production to keep up with rising demand.[/quote]
Agreed, the oil supply is dwindling, and the demand is rising, but the damage done by speculators who are betting on this trend in the interim is greater than the trend itself (IMHO). Like CG stated above, this is what revolutions are made of.
If I were Empress of the Universe, I’d raise margin requirements for commodities trading (or ban commodities trading on margin, entirely), and immediately reduce and regulate the number of people who could trade, who were not producers or wholesale consumers of the commodities. Joe Smith, the hedge fund guy (and his compatriots) should NOT be allowed to move commodity prices.
May 27, 2011 at 5:29 PM #700318Participant[quote=Rich Toscano]Speculators can contribute to short-term spikes and drops (eg they surely played a role in the rapid 2008 runup to $147 and subsequent crash to $34).
But they aren’t responsible for the general trend towards high oil prices that we’ve seen this decade. Global oil production has basically not increased at all for 5 or 6 years against a trend of increasing global demand.
Speculators, along economic booms and slowdowns, can cause a lot of volatility around the underlying upward trend in oil prices. But they aren’t responsible for the trend itself… the “blame” there lies with the inability of oil production to keep up with rising demand.[/quote]
Agreed, the oil supply is dwindling, and the demand is rising, but the damage done by speculators who are betting on this trend in the interim is greater than the trend itself (IMHO). Like CG stated above, this is what revolutions are made of.
If I were Empress of the Universe, I’d raise margin requirements for commodities trading (or ban commodities trading on margin, entirely), and immediately reduce and regulate the number of people who could trade, who were not producers or wholesale consumers of the commodities. Joe Smith, the hedge fund guy (and his compatriots) should NOT be allowed to move commodity prices.
May 27, 2011 at 5:29 PM #700673Participant[quote=Rich Toscano]Speculators can contribute to short-term spikes and drops (eg they surely played a role in the rapid 2008 runup to $147 and subsequent crash to $34).
But they aren’t responsible for the general trend towards high oil prices that we’ve seen this decade. Global oil production has basically not increased at all for 5 or 6 years against a trend of increasing global demand.
Speculators, along economic booms and slowdowns, can cause a lot of volatility around the underlying upward trend in oil prices. But they aren’t responsible for the trend itself… the “blame” there lies with the inability of oil production to keep up with rising demand.[/quote]
Agreed, the oil supply is dwindling, and the demand is rising, but the damage done by speculators who are betting on this trend in the interim is greater than the trend itself (IMHO). Like CG stated above, this is what revolutions are made of.
If I were Empress of the Universe, I’d raise margin requirements for commodities trading (or ban commodities trading on margin, entirely), and immediately reduce and regulate the number of people who could trade, who were not producers or wholesale consumers of the commodities. Joe Smith, the hedge fund guy (and his compatriots) should NOT be allowed to move commodity prices.
May 27, 2011 at 5:39 PM #699496
Rich ToscanoKeymasterCan’t disagree with you, CAR. I certainly agree that this volatility is harmful.
I just bring up the point because a lot of people want to put high oil prices entirely on the shoulders of speculators. Unfortunately, this includes virtually all politicians (that I’ve heard anyway). So instead of formulating an energy policy that would address the root cause, but would require sacrifice, they just take the easy way out and pretend it would be $2 gas now and forever if it weren’t for those pesky speculators.
May 27, 2011 at 5:39 PM #699592Rich ToscanoKeymasterCan’t disagree with you, CAR. I certainly agree that this volatility is harmful.
I just bring up the point because a lot of people want to put high oil prices entirely on the shoulders of speculators. Unfortunately, this includes virtually all politicians (that I’ve heard anyway). So instead of formulating an energy policy that would address the root cause, but would require sacrifice, they just take the easy way out and pretend it would be $2 gas now and forever if it weren’t for those pesky speculators.
May 27, 2011 at 5:39 PM #700175Rich ToscanoKeymasterCan’t disagree with you, CAR. I certainly agree that this volatility is harmful.
I just bring up the point because a lot of people want to put high oil prices entirely on the shoulders of speculators. Unfortunately, this includes virtually all politicians (that I’ve heard anyway). So instead of formulating an energy policy that would address the root cause, but would require sacrifice, they just take the easy way out and pretend it would be $2 gas now and forever if it weren’t for those pesky speculators.
May 27, 2011 at 5:39 PM #700323Rich ToscanoKeymasterCan’t disagree with you, CAR. I certainly agree that this volatility is harmful.
I just bring up the point because a lot of people want to put high oil prices entirely on the shoulders of speculators. Unfortunately, this includes virtually all politicians (that I’ve heard anyway). So instead of formulating an energy policy that would address the root cause, but would require sacrifice, they just take the easy way out and pretend it would be $2 gas now and forever if it weren’t for those pesky speculators.
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