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I say the speculators are finally getting caught with their pants down!!
Earlier the contract, which will be replaced by September crude Wednesday, dropped as low as $125.63.
The drop offered further evidence that investors who only a week and a half ago drove prices to a new high above $147 a barrel are now quickly pulling money out of the market. It was also a reminder that, with traders for the moment turning bearish, the absence of major news can push the market down -- just as incremental supply concerns previously drove prices sharply higher.
"This is more of the long exit from the market by the hedge funds," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "A lot of these investors who have been supporting prices are hitting the road." In Washington, the Senate voted 94-0 to move ahead with a plan that would require the Commodity Futures Trading Commission to set limits on trading in oil markets by certain large investors.
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Too much junk/toys to mention, ever changing due to too getting bored too quickly. I need a 10 step program!
Want to call? I'm in the book. Want to argue....First explain the square root of negative one....lol
And the US government say it's NOT the speculators.........yeah right . So I guess supply rose and demand fell to the tune of over $20/barrel in the last few days????
COMMODITIES Traders driving oil price? Not so, report says
PAUL WALDIE
July 23, 2008
Speculators are not responsible for the soaring price of oil, a U.S. government task force set up to investigate increases has concluded in a preliminary report.
The task force's analysis to date "does not support the proposition that speculative activity has systematically driven changes in oil prices," said the interim report released yesterday by the U.S. Commodity Futures Trading Commission.
The CFTC, which regulates energy trading in the United States, has come under increasing pressure from politicians and consumers to crack down on speculative trading in oil and other commodities. Many U.S. politicians blame institutional investors for driving up the price of oil, and the Senate is considering legislation that would require traders to provide more information on unregulated over-the-counter transactions. Those transactions, led largely by complicated swap deals, have increased in recent years and have become popular investment vehicles for index funds and pension plans.
In June, the Interagency Task Force on Commodity Markets began examining the impact of speculators in the oil market. The task force is led by the CFTC and consists of representatives from the U.S. Departments of Agriculture, Energy and the Treasury, the Federal Reserve Board, the Federal Trade Commission and the Securities and Exchange Commission.
Yesterday's interim report said rising prices are the result of supply and demand factors blah blah blah
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Wow, $20 whole deflated dollars, down to $128. A real bargain. Dancing in the streets !
The drop wouldn't have anything to do with an inventory build last week and this week would it ? Or the fact that everyone is finally realizing that the economy is very soft. Or the fact that demand has dropped right in the middle of the high demand summer driving season.
No, it wouldn't be any of those things. It must be the conspirators or the speculators. Yeah, they set the price... sure...
Wow, $20 whole deflated dollars, down to $128. A real bargain. Dancing in the streets !
The drop wouldn't have anything to do with an inventory build last week and this week would it ? Or the fact that everyone is finally realizing that the economy is very soft. Or the fact that demand has dropped right in the middle of the high demand summer driving season.
No, it wouldn't be any of those things. It must be the conspirators or the speculators. Yeah, they set the price... sure...
What about Mr. Bush's announcement that he was lifting the offshore drilling moritorium, on the executive level (Congress may be pressured to follow suit)? You think that couldn't have had an effect? Even the Saudi's say the fundamentals only support a price of $60-$80 per barrel.
Speculation has a lot to do with it, just like it did in the dot.com bust. Everyone wanted these darling stocks, of companies which had never turned a profit and had no real physical assets, just a bunch of servers in leased buildings. Somehow some of them had overall stock value that was higher than giant companies with huge land and physical assets, like Boeing or GM. It still only costs the Saudis $5 to get a barrel of oil, and the cost in the US on existing wells didn't go up. And there was no real shortage, no gas lines, etc.
Wow, $20 whole deflated dollars, down to $128. A real bargain. Dancing in the streets! ...
The chocolate ration has been increased to twenty-five grams per week. Double-plus-good!
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Douglas Campbell [drcampbell ot engineer dat kahm]
November 5, 2008: The fat lady sang. Back to actually working for a living.
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9/22/2007, age 21: Still running well when reluctantly sent away for reincarnation, due to body & frame rust.
And the US government say it's NOT the speculators.........yeah right . So I guess supply rose and demand fell to the tune of over $20/barrel in the last few days????
Ford Motors lost 15% today. Just under $2B. Do you think that demand for their trucks fell to the tune of a million units in the last few days ?
No, but I don't believe they report their earnings (or losses) on a daily basis like oil or the dow jones industrial averages. If they did, you wouldn't see a 15% drop per day.
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No, but I don't believe they report their earnings (or losses) on a daily basis like oil or the dow jones industrial averages. If they did, you wouldn't see a 15% drop per day.
Ford's stock price is quoted daily, just like oil. Oil inventory is quoted once a week. Like Ford's operating results, those reportings tend to trigger price movements like they did the last 2 weeks.
Ford's stock price is quoted daily, just like oil. Oil inventory is quoted once a week. Like Ford's operating results, those reportings tend to trigger price movements like they did the last 2 weeks.
Who cares. Speculators are a needless middle-man that hurts both the consumer and the producer even if they aren't driving prices which we know isn't true.
Who cares. Speculators are a needless middle-man that hurts both the consumer and the producer even if they aren't driving prices which we know isn't true.
We do, do we ? Where did you get your PhD in economics from ?
Oil prices drop, but diesel prices @ the pump stay the same or increase
butchcassidy1
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Well, we actually have bigger problems to worry about than the cost of energy.
The Root Cause of the energy price increase is what needs to be addressed.
Where the money is going. If it were 700 billion but all of it were remaining here in USA jobs and USA profits and dividends the problem would not be as bad. It is draining money and jobs and basically pulling the country down.
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Too much junk/toys to mention, ever changing due to too getting bored too quickly. I need a 10 step program!
Want to call? I'm in the book. Want to argue....First explain the square root of negative one....lol
. So I guess supply rose and demand fell to the tune of over $20/barrel in the last few days????
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