Oil bubble - Speculators hijack oil market (?)

Discussion in 'Commodity Futures' started by mtzianos, Aug 23, 2005.

  1. This is a dated article (late 2004), but still relevant, as effects of speculation on oil and (even more) nat.gas has increased even more during 2005.

    I accept speculation as legit activity.

    But it's important to understand that it's not real supply/demand imbalances due to phantom China/India demand or OPEC supply policies, or the world is running out of oil etc that is driving the oil bubble.


  3. The only bottleneck in PHYSICAL oil market right now is in REFINERIES in oil consuming nations. Oil stocks are at 5yr highs.

    Why do you think there's a bottleneck in refineries?

    I have many friends in shipping biz (owning oil tankers and delivering all over the world), and know the status of the physical market.

    In my opinion, this whole circus of the last 2yr over oil, is thanks to Dubya (acting on behalf of Big Oil, giving them overnight profits they'd have to earn over 10yr).

    Coupled with WallStreet speculation.

    Just as long as everyone knows they're walking a very fine line here, because if major economies go into recession (basically the US consumer of last resort rolls over) because of oil prices, then oil-producing countries will be the first to suffer.

    OPEC statement: