Removal of the supports underneath these artificially manipulated (oh, was I redundant there?) prices.... Chairman of JetBlue was commenting (on that horribly biased CNBC news channel - not worth watching) that its more than a joke what has been allowed to happen in this incredible country. The US refuses to challenge these hedge funds and those rich contributors from influencing to their gain, these maniuplations against all citizens. Without a formal and public energy policy, these abuses will continue to run rampant as long as this Oil Administration is in power.
(on that horribly biased CNBC news channel - not worth watching)------->>>> Well, you definitely got this part right. How anyone can tolerate watching this for even a split second is just flat out puzzling. The only time I even turn this station on is on Fed day when I absolutely gotta have timely information. If I had to listen to this all day I'd put a .44 thru my skull in 2 seconds.
The hedge fund conspiracy doesn't add up. After all, they have to sell to make a profit. remember the Hunt brothers? Not only did they buy physical silver to inflate the price; they also tried to gain control of silver mines to control supply. Presumably, the contention is that GS is controlling oil by taking physical delivery. But again, they have to sell at some point. I say peak oil is real and GS knows this. When they do sell, it will be at a high price, because oil exporters will be unable to supply as much as in the past. But then, my mind cannot grasp complex hedge strategies. That is why I work for a living.
You don't have to sell ICE futures to take a profit, it is cash settled and the easy way to manipulate a market. NYMEX follows ICE (arb) as ICE is the premier, no regulations and no CFTC yet.
German institute DIW sees oil prices doubling within 10 years http://www.forbes.com/afxnewslimited/feeds/afx/2008/01/03/afx4488969.html FYI, I have no vested interest in oil going anywhere, I don't own a car and my employer pays all my plane tickets. Actually, maybe I should nuance this, I believe that if oil traded at $500 maybe people would burn less of it and the earth would be cleaner
Turns out it was a vanity trade: http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/business/7169543.stm
the hegde funds are doing a favor to the world by spiking prices right now, the only thing that will kill the oil bull down the road are the investment decisions that are being made right now(and in the last years) by high prices. american shale, coal, canandian tar,nuclear,solar all these stuff is booming thanks for the high prices, if there was no futures market and speculators you would see gigantic spikes everytime inventories got low, like in the 70's. by increasing the volume and open interest on so many contracts they are creating incentives to increase the amount of above ground inventories
and you think that the hedgies will NOT corner the market in the "emerging" technologies once they have emerged? they have more money than God at this point.