Well if anyone else watched 60 minutes last night you now know why the price of oil spiked last summer, an investigation revealed that speculators in the futures market conspired to buy up oil stocks to push the price higher for their own profit. Most of these speculators were large financial companies who have no other connection with the oil industry. Investigators were alerted when the price of oil jumped $25 a barrel in one day when there was no coinciding increase in demand to cause the spike in the price. As some suspected the run up in the price of oil had little to do with supply and demand. When the government investigator was asked by 60 minutes how this could happen he replied that a former energy company named "ENRON", which had a lot of influence in Washington, got the regulations relaxed that would have prevented this type of misuse of the futures market. Everyone needs to contact their congressmen and ask them why this was allowed to happen and what they intend to do to keep it from happening again.
Oil Price Scam Revealed
- Thread starter onlyrotax
- Start date
There used to be a contract limit on how much oil someone could buy on the market without takind delivery. That was relaxed in the late 90's. If we went back to those limits we wouldn't have these problems.
A
augerin
Well-known member
i could tell the whole time by looking at inventories of crude and product, never really changed, at times inventories where higher than normal but the price just kept goin up,
imo,
oil pres and his buds made there money on their way out
imo,
oil pres and his buds made there money on their way out
*yawn*
OPEC is what drove the prices up, period.
The relativley tight margin between global supply and demand is what allowed any market manipulation to take place. And I am not really convinced there was any. People paid for $4.00 a gallon gas, so that's what the price was. That's called capitalism. Artifically having the federal government set price caps might as well be considered communist.
OPEC dictates what the global supply will be, the market dictates demand.
If the idiot politicians in this country were serious about doing things that benefit the US economy as well as helping us beome less dependent on OPEC, then then roughly 1/2 of Washington would be doing exactly the opposite of what they have been doing for the last 30 years, and trying to find ways to make it as cheap as possible for US operating companies to operate DOMESTICALLY as opposed to doing everything they can to make it as impossible and expensive as they can to drill here.
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Leave the market alone!!! You see how quick it dropped when reality set in. Many speculators lost a bunch of money. We don't needd the government that brought us trillion doller debts and bailouts poking it's nose in the markets any more than it already has, ugghhh Barny Frank and pelosi in charge of the oil production!!!!!!!!! Swampy
Leave the market alone!!! You see how quick it dropped when reality set in. Many speculators lost a bunch of money. We don't needd the government that brought us trillion doller debts and bailouts poking it's nose in the markets any more than it already has, ugghhh Barny Frank and pelosi in charge of the oil production!!!!!!!!! Swampy
hes right. we had to slow the economy some how people will put gas in there cars before food on the table most of the time. its something we can't live with out at all. then when it drove everything up thats when people couldn't pay there house payments when the other half of our problems with lending companies got dumb and would lend someone making 50,000 a year 300,000 for a house.
Now there house and gad to go to their little job were the same amoutn and something had to give.
I use the analogy of when we all kids we would find matches get a piece of paper and lite it on fire it would flare up alittle and we would blow it out. lite it again and the fire would be alittle bit bigger this time we could still blow it out. the last time we lite it on fire then O $$$T and thro it up in the air and run.
Thats the same way things happen with this economy. WE as a county weren't smart enough to listen from and watch and learn from our past and just be content with everything going good we were all greedy as he$$ and kept on. then it crashed and burned
Sorry just my .02
Now there house and gad to go to their little job were the same amoutn and something had to give.
I use the analogy of when we all kids we would find matches get a piece of paper and lite it on fire it would flare up alittle and we would blow it out. lite it again and the fire would be alittle bit bigger this time we could still blow it out. the last time we lite it on fire then O $$$T and thro it up in the air and run.
Thats the same way things happen with this economy. WE as a county weren't smart enough to listen from and watch and learn from our past and just be content with everything going good we were all greedy as he$$ and kept on. then it crashed and burned
Sorry just my .02
Leave the market alone!!! You see how quick it dropped when reality set in. Many speculators lost a bunch of money. We don't needd the government that brought us trillion doller debts and bailouts poking it's nose in the markets any more than it already has, ugghhh Barny Frank and pelosi in charge of the oil production!!!!!!!!! Swampy
bingo.
B
buck50
ACCOUNT CLOSED
you guys do know that canada is the single largest supplier of oil to the US right!!!!!!!!!!!!!
Yep, it's those darned Canadians!!
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pullhardr
Member
Yes, but they don't set the oil prices, OPEC effectivley does.
Oil is traded on a world-wide basis in US dollars. Everywhere.
D
Diesel99
Member
YAWN!!! clue in.
OPEC sets supply somewhat not prices, they can influence it a bit but they have no self control on the supply side. NYMEX, IPE, SIMEX sets the prices.
If OPEC sets prices why is at $38 instead of whatever the hell they want? If you say it's because demand is down then it's the consumer that sets the price.
S
shortstop20
Well-known member
Why is it that when OPEC cuts production by 2 million bbl/day, prices go up?
They have more influence over oil prices due to them controling the margin between supply and demand than any other sole entity on the planet.
When demand was high, they kept a steady production hardley increasing output from where it is right now at all. If you pay attention to what global demand vs. global supply is, demand was typically about 1 million bbl/day mroe than the supply was. That allowed the rampant speculation to take place.
OPEC was the only entity that, by themselves, could have closed that margin and thusly effected the price.
That settles it, now we know the culprits. swampy
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