Comments on: Part Four: The Regulators Blowtorch Oil Speculators

By: Tampa John

Tampa John — Wed, 09 Jul 2008 12:03:33 +0000

We have our pros and our cons in life. And in the US it seems that our Congress which impedes Progress. Thus their work lives true to their name.

By: FM

FM — Tue, 08 Jul 2008 20:09:51 +0000

Oil should never be a commodity open to speculation, period. Speculate on any other commodity but not oil. The reason is obvious as oil currently drives everything financially. I get sick to my stomach when I see JP Morgan and other investment groups issuing statements on “how high oil could go” or “that it won’t go below x a barrel” simply to try and keep spinning this oil speculation market that is already so fragile. Anyone who is not convinced that this is an issue that has primarily been caused from greed based speculation only need to look at the drastic daily swings in price per barrel. Those +-$5 SESSIONS show CLEAR evidence the way this market is currently pushing prices around based on what *might* happen with each new day.

My hope is that the bubble bursts quick and so hard that the speculators that have helped double the price of oil in a year lose, lose, lose.

By: Karnak ..

Karnak .. — Tue, 08 Jul 2008 19:18:11 +0000

Justin……… I said nothing about “obscene” profits.. You are sounding like Pelosi. Big Oil is making record profits and I congratulate them for it.. However, oil is an integral item to the health of our citizens and the security of our country. Therefore, Congress and Big Oil both are guilty of taking advantage of a situation where there are too few legitimate competitors in the marketplace.. You are correct in saying that Congress should be villified for their lax attitude toward oil producers and their do-nothing policy about drilling; especially when alternatives are not on the horizon yet.. The lack of a gold standard for the dollar is a major contributing factor to its fluctuations.. I see no Congressman making any move to correct the dollar’s woes.. —- Big Oil will continue to charge as much as possible, and Congress will continue to do nothing of any consequence as long as the oil lobbyists continue the flow of money.. They both are enjoying a spectacular ride right now with no consequences to pay (YET)…

By: Rod

Rod — Tue, 08 Jul 2008 15:35:33 +0000

Justin

Did it ever occur to you that “profit margin” is just accounting, and can be manipulated as a company needs, ever hear of cooking the books? Increased expesnes in any category decreases the profit margin. Give the CEO and other execs a big bonus or raise that decreases the profit margin. Let your Nigerian platform get blown up that loss decreases your profit margin. Are we getting gouged? Yes, by the oil companies, the oil cartel, the local gas station, the speculator and our elected officals. Are we seeing record demand? No. New car sales are in the dirt. Trying to convince me India has a record number of scooters on the road? Please. China is suddenly booming and the rural masses are suddenly living the first world lifestyle? Not even. Similar arguements can be made for all petro products, eg the rural Indian masses suddenly using plastic plates and eating utensils; etc. The oil cartel squeezes us, the oil companies gouge us, the speculators on all levels have a part, the local station owners are raising the prices daily/weekly on fuel that is paid for and in the tank underground, and our elected officials have created rules like the enron/london loophole and have likely profited from them and are now, that the light of day is shining on them, condemning them. Remember, gold is nothing more than a metal we as humans ascribe value to.

By: Don Kamp

Don Kamp — Tue, 08 Jul 2008 12:45:04 +0000

Are current crude oil prices in a speculative bubble? Or is is possible that (due to 20 years of a chronic glut of oil) the dollar is terribly over valued and the price of oil is still unnaturally depressed? And just maybe we’ve all collectively been hypnotized into thinking that oil should still be priced at $12 to $18 per barrel (except for maybe a few smart speculators). When are people going to wake up and quit trying to use fried eggs for doing their thinking.

Has everyone forgotten the 70’s oil crisis except me. It was a real education, but lost on too many. And all through the 90’s (while trying to speculate on oil stocks and not doing too well) I would sit in wonder while watching people load up on bigger and faster cars, motor homes, and unbelievably gas hungry motor boats. Are we really dumb or what? Some aren’t and realize that oil will still be dirt cheap at $140 a barrel. And Congressmen will hate them for being smarter than they are. If I were them I would very much like to rob from the smart people and give to the stupid ones.

Oh! And another thing: If you can’t beat ‘em, join ‘em. What I mean is: Why is the Federal Reserve Bank fiddle farting around with the M1 money supply? It’s pretty much futile. They should be speculating on commodities that have real value.

Don.