Fisher just admitted price of oil higher becuase of specs

Discussion in 'Commodity Futures' started by stock777, Apr 26, 2011.

  1. olias

    olias

    This is the conclusion that I have come too also.

    To state it another way, 'speculators' can, and do 'get it wrong'. There will be times that they overvalue a commodity, but eventually prices come back in line. And there will also be times that they undervalue a commodity and that's when the consumer benefits from speculation. All in all, the markets and the ability for speculation, means that the prices we all pay at the store and at the pump are much more consistent, and overall, cheaper than we would pay if left up to the simple forces of supply and demand. This is the function of commodity markets.

    I love Obama, but he's got this one wrong, as do a lot of other politicians, and even Elite Traders.
     
    #31     May 19, 2011
  2. Agreed.

    It absolutely amazes me that some the individuals in this forum, out of one side of their mouths, say that speculators are idiots and can't consistently make money day trading, they all loose money and are all delusional. Then out of the other side of their mouths they say that speculators are the main cause of the oil price going up. They are clueless on how the economy works AND clueless on how to succeed day trading.
     
    #32     May 19, 2011
  3. ===========
    Must be pretty close to right;
    PT Jones said he can go into anymarket for 3 days & create the illlusion of a bull market:D .

    Mainly get the federal gov out of the way;
    l & more private sector low gas milage autos would help.

    And like the king of Arabia said'' cut the gas tax''....................................................................................................:D
     
    #33     May 25, 2011
  4. Build the infrastructure for natural gas fueling.
    Convert gas & diesel engines to natural gas.
    Diesel and heating oil account for 25% of our oil consumption.
    10 years and we could go a long way to cutting our dependency to Crude off at the knees.
    15 years we would be producing more Crude than we would consume.
    The longest journey begins with the first step and the oil industry has no feet.
     
    #34     May 25, 2011
  5. What makes prices go down in the long-term? Increased supply and lower demand. What makes supply increase and demand decrease? Higher prices.

    Therefore, if you want oil prices to be low in the long-term, you should support price increases. If you support low prices, you will end up with high prices.
     
    #35     May 25, 2011
  6. =================True;
    interesting CFTC case, filed tues, against Nic Wildgoose/Arcadia Petroleum , one of the biggest cases in energy markets.{WSJ 5-25-2011}
     
    #36     May 25, 2011