Oil prices to be probed by US regulator CFTC

[High EGT]

Recent surge in oil prices - which hit record highs of $135.14 a barrel last week - has been largely the work of speculators in the energy markets rather than any actual increase in demand.


Oil prices to be probed by US regulator CFTC - Telegraph

 

[ImnoMensa]

More money wasted. This country is not going to do anything about speculators even though they might ruin us all with these money making tactics.

For all the good this will do they might just as well probe a Bull's azz ,what they will come up with will be Bullsheit.

 

[molake]

Maxine Waters must be getting the ball rolling ...

 

[High EGT]

More money wasted. This country is not going to do anything about speculators even though they might ruin us all with these money making tactics.

For all the good this will do they might just as well probe a Bull's azz ,what they will come up with will be Bullsheit.

Considering how much money was wasted grilling Big Oil excecs before Congress, I for one would have rather had these speculators at the table explaining to America and the rest of the world "their" reasoning for pricing on a barrel of cruid. That would have been truely entertaining.

 

[Larry Gude]

2a...

...has offered a solution a long time ago; you can't buy a contract on oil unless you can physically take delivery.

Bruzilla argued that oil is too much of a necessity and should be government run.

I argued against both of these positions, but I concede that the position of oil in our economy is a national interest, especially given the multinational make up of the oil companies and the impact of global interests and the effect on our economy AND the natural conflicts between supplier nations, which are NOT free trade organizations, that the time has come to remove free market status and start working, deliberately, to a national energy policy focused on energy cost stability of FOREIGN supplies.

 

[High EGT]

If I had my way (and I rarely do) I would have the faces and names of these so called “oil speculators” posted on the W.W.W. for all to see and know. It wouldn’t take a college degree to know how that would influence the oil market?

 

[Larry Gude]

Why?

If I had my way (and I rarely do) I would have the faces and names of these so called “oil speculators” posted on the W.W.W. for all to see and know. It wouldn’t take a college degree to know how that would influence the oil market?

How would that have any effect at all? It is legal to speculate in oil futures, same for pork bellies, wheat and orange juice.

What's the point of invading the privacy of people and their financial transactions?

 

[ImnoMensa]

Hillary didnt have a corral for the Cattle futures she bought.LOL

Where are all of the people on here who used to say Supply and Demand was what was driving up the prices?

 

[MMDad]

Until 2000, it was illegal to trade in Dark markets (no oversight). Enron got that passed in congress. Since then, the oil market has been driven by forces other than supply and demand.

Oil has dropped from $135 to $126 in a week. $4 of that is overnight. Some people think this threat from the regulators is causing the drop. People are bailing to avoid getting caught.

I don't believe Bru's nationalization is the way to go, but when a market affects our economy the way oil does, increased regulation may be a good thing.

 

[awpitt]

...has offered a solution a long time ago; you can't buy a contract on oil unless you can physically take delivery.

Bruzilla argued that oil is too much of a necessity and should be government run.

I argued against both of these positions, but I concede that the position of oil in our economy is a national interest, especially given the multinational make up of the oil companies and the impact of global interests and the effect on our economy AND the natural conflicts between supplier nations, which are NOT free trade organizations, that the time has come to remove free market status and start working, deliberately, to a national energy policy focused on energy cost stability of FOREIGN supplies.

Do you think it would be reasonable to regulate the oil companies in the same way utilities are regulated? There seems to be a good arguement that there is no true competition in the oil industry.

I saw a segment on TV talking about how it costs $20-60 per barrel for the oil companies to drill and pump oil from the rigs in the Gulf of Mexico yet it goes to market at $135 per barrel.

 

[Larry Gude]

Supply...

Hillary didnt have a corral for the Cattle futures she bought.LOL

Where are all of the people on here who used to say Supply and Demand was what was driving up the prices?

...and demand is a factor; demand HAS gone up and will continue to do so, Prius's or not. Supply is the issue and it is partial restricted by other nations, national oil companies, whose national interests may or may not conflict with ours. Supply is further restricted by keeping domestic resources out of the market artificially both by government action and by monopolies in the now transnational corporations. Why pump new oil only to cut the price when you can make more doing less? There is no competitive force within the US.

Hillary's cattle at least had the virtue of being American cows. Further, she didn't invest in cows, her broker did. The smelly part is that she was one of numerous clients and the broker had the ability to move trades around as he saw fit, along with profits or losses made and, in essence, played a bunch of people's money and GAVE her profit on trades not directly and specifically tied to her money.

 

[Larry Gude]

It depends...

Do you think it would be reasonable to regulate the oil companies in the same way utilities are regulated? There seems to be a good arguement that there is no true competition in the oil industry.

I saw a segment on TV talking about how it costs $20-60 per barrel for the oil companies to drill and pump oil from the rigs in the Gulf of Mexico yet it goes to market at $135 per barrel.

...on several factors; Domestic electricity is easy (easier) to regulate because it it not tied to oil, foreign oil. It is generated by coal and natural gas which is, mostly, if not all, domestic supply. Whatever the factors are, very little electricity is generated by oil and, as such, is not subject to the mayhem we're seeing in oil. We can add nuk-ular, we have 500 years of coal, we can pursue solar and wind and bio solutions. The key being these are resources within our national control.

One of the most interesting ideas I've heard is a government mandate that all new cars must be flex fuel. That instantly puts oil up against Brazilian ethanol, domestic ethanol and brings into the mix methanol, a better fuel that also has some issues to be dealt with, and instantly puts into play the economic incentive for people to go fight for segments of that market.

The consumer simply buys whatever is cheaper or more convenient.

To exclude foreign nations from manipulating the markets by temporarily crashing oil prices to drive off upstart alternative resources, I see, coupled with the flex fuel mandate, balanced restrictions on importing energy. If we have tariffs that automatically adjust then we provide the incentive for stability and consistency.

In other words, let's say we come up with a tariff number on imported oil. The source of the oil makes no difference, just a tariff on all imported oil. That number will be structured so that imported ethanol and methanol and bio fuels benefit if oil prices start crashing, thus protecting them from fluctuations, hostile or otherwise, that would cause them to fail as stable sources. If oil drops, the tariff goes up to keep the other fuels in the game. We make oil static and allow profit motive to compete against a given factor.

If we accept this is a national security issue, and it is; we keep going to war over it, then we can accept government intervention.

 

[kom526]

If I had my way (and I rarely do)

So, how long ya been married?

 

[High EGT]

So, how long ya been married?

Owned

 

[kom526]

Owned

:feelingyourpain:

 

[High EGT]

How would that have any effect at all? It is legal to speculate in oil futures, same for pork bellies, wheat and orange juice.

What's the point of invading the privacy of people and their financial transactions?

I really don’t know if it would have any effect at all but for the same reasons Congress felt that grilling Big Oil execs on national TV would in some way bring light to some grand conspiracy which I personally felt was a waste of time when in fact the speculators where the ones driving oil prices to record highs. I'm just focused at the root cause and again if your an individual bent on artificially inflating prices on a commodity for personal gain you should be held accountable in some way and by posting names these same individuals may think twice about doing so. The Asian market is famous for this approach and is punishable by death in some circumstances.

 

[AndyMarquisLIVE]

Enron got that passed in congress.

Are you saying Enron wasn't George and Dick's fault?

The libs aren't going to like hearing that.

 

[AndyMarquisLIVE]

Considering how much money was wasted grilling Big Oil excecs before Congress, I for one would have rather had these speculators at the table explaining to America and the rest of the world "their" reasoning for pricing on a barrel of cruid. That would have been truely entertaining.

Yes it would. I'd definently be watching that.

 

[Larry Gude]

You...

I I'm just focused at the root cause and again if your an individual bent on artificially inflating prices on a commodity for personal gain you should be held accountable in some way and by posting names these same individuals may think twice about doing so. The Asian market is famous for this approach and is punishable by death in some circumstances.

...think one person is responsible for the price of oil due to their speculation?

FWIW, speculations on commodities is gambling; all you're doing is betting it will go up or down. You do research, you guess what the future may hold and how likely that is, you look at current conditions, current trends, you stick your whetted finger in the air and you make a wager.

People have been betting on oil going up due to increasing world demand, static production, limited refining, wars, weather and a profound lack of anyone, especially the US, doing anything at all to alleviate the price pressure besides turning a few Dorito's into a few drops of oil and, worse, a US lead and China exacerbated devaluation of the oil trading currency; the dollar.

 

[High EGT]

...think one person is responsible for the price of oil due to their speculation?

FWIW, speculations on commodities is gambling; all you're doing is betting it will go up or down. You do research, you guess what the future may hold and how likely that is, you look at current conditions, current trends, you stick your whetted finger in the air and you make a wager.

People have been betting on oil going up due to increasing world demand, static production, limited refining, wars, weather and a profound lack of anyone, especially the US, doing anything at all to alleviate the price pressure besides turning a few Dorito's into a few drops of oil and, worse, a US lead and China exacerbated devaluation of the oil trading currency; the dollar.

think one person is responsible for the price of oil due to their speculation?

Nope!

But

I have as much understanding as how the commodities market works as the next guy so in that respect I have no problem paying more for Orange Juice if say a freeze decimates the Florida crops but when OPEC reported this week that a barrel of crude should be about 70 to 80 $ based on current supply and demand then YES my crosshairs would be pointed to whose inflating the prices and what are the justifications.