Too much fucking nonsense on ET. I dare anyone to pull up a chart of crude priced in Gold. It's fucking obvious that a major reason for the rise in price of crude is due to a decline in the purchasing power of the dollar. This including declines in most other fiat currencies. It's proof that the Fed is not doing it's job. When crude was priced in the teens not to long ago, how come no one was complaining about speculators driving the price lower? It sounds like people seem to think speculators only get involved when the price rises. Lastly, why is it so fucking hard to understand the concept of Supply & Demand. Crude oil has also been shown to be highly inelastic in terms of price and demand, so Crude will continue to rise in real terms until supply greatly exceeds demand. Any drop in oil inventories is proof that prices need to go higher. Once inventories show a consistent buildup for several months, then and only then will price start to fall.
Kin, Then your arguement suggests an increase in margin requirements should have no effect on the price of oil?
it is regrettable that you denegrate into cursing to make your points, as if they don't stand on their own merrit, oops, we've heard those excuses to justify oil when it was reaching that aweful sum and peak in the $60 range, then as well as now, I repeat, as on other thread, why is it so hard to believe the ultimate insiders on this matter, the Saudi Oil Ministers, who are and have and continue to show the actual consumption usages (read: demand from countries) and production from them and other OPEC members (read: supply), they continue to say the causes of these prices have nothing to do with supply and demand, and are due to speculative increases to the tune of some $40 per bbl conservatively, ut oh, that was when oil was in the $80 - $85 bbl/US range.... ut oh, what excuse do we need to justify it being even more? one trillion India Indians, and fifteen billion China Chinese are all now at the gasoline pump???? hey, curse that!
In the long term, none whatsoever. In the short term, who knows. I imagine a lot of positions would have to be unwound. supply and deamnd along with the value of use will eventually determine the price of crude, which should be exactly where it is at today.
need I forget watching CNBC and its frequent commentators, all commenting over a recent three week period of their embarassment of riches with Oil and Fuel contracts, all saying that the normal supply / demand equation has decoupled from the trading prices of Oil (and related fuel products).... yet again, other ultimate insiders telling their tales.....
Your logic is flawed. If you would actually take the time to do some research, i.e. study history, you will find that speculative bubbles are fueled by supply and demand. It (Oil at $100+, gold 1k an ounce, etc.) all has to do with the excess supply of fiat currencies. Don't let the media and govt. brainwash you, please.
I personally think we're going to $200 and beyond soon. You will still be screaming of market manipulation, and I'll still be cursing at your kind. I can't wait before someone suggest price controls. I've found that living near your everyday amenities/work, and taking transit when possible can be quiet the money -- and more importantly -- time saver.
who was asleep at the helm during the last 8 years allowing this to continue to the excess that it has become? fiat currencies, your response is overly flawed and simplified. one commentator made reference to the dog / pony show of the pretense of talking / blaming SA for not pumping enough.... and quiet all the rest of the time as prices continue out of sight... so, what are fiat currencies?, and how, in any measure of explanation, flawed, simplified, in depth, or not explained at all, how do these justify anything? enlighten us all,
disclosure.. I'm currently living in Chicago which has an excellent mass transit system which is both faster and more affordable than driving into the city. In most other cities without decent transit, you got to live no more than 5 minutes away from your daily activities. Be it work, shops, strip clubs, whatever. All those sub prime suckers who bought homes 50 miles from civilzation are getting an anal rapeage due to not being able to afford their home and having a 100 mile commute everday! Hey can't afford gas in their SUV or ford 150.
hey KIN, don't forget to curse this one, and that one too.... its not about the challenge to the price, but all the lies and baffoons that champion these conditions as natural, normal, deserved, justified somehow and think there's no reason for a backlash.... hey, 4 more years of this and who will care what price it is, won't be able to afford a pot, nor a window, remember that phrase? Remember the movie Solient Green?, with Chas Heston? always wondered how those people got there too...