look up what's done with Milk. Ever notice that while prices do move around, you never pay double for a 1/2 Gallon because a few cows fart? you're being scammed and hustled by the oil racket. either you get it or you make excuses. 90% of the price is determined by how far you'll bend over. apparently, many of you can touch your ankles and keep a nice supply of k-y jelly on hand.
Just stop consuming any form of energy and there will be no market and therefore no production for your hippy communist B.S complaints. Aren't you the guy that started that thread about taxi driving being a more lucrative and rewarding profession than trading?
$147 per bl in mid 2008 down to $37 per bbl in less than six months... 2+ years later and we will probably be above that $147 soon enough. Regardless of the cries for a "free market", to me there is enough of an argument towards this being a real racket. At the same time, the cost of gasoline exerts enough political pressure so as to get the attention of the politico's who would much rather pretend nothing is amiss. Kind of hard to continue the horse & pony show with the usual ra-ra bullshit of a "recovering economy" if it constantly includes $5 gasoline with housing prices on their ass. Probably the best way to view all of this debilitating volatility is as a repudiation of central banking monetary hijinx. Their constant efforts to stimulate asset prices in the face of minimal organic growth result in money flowing towards hard assets.
CFTC can simply raise the margin requirements for hydrocarbon futures; problem solved. ICE and Nymex really have no choice but to comply. Less financial participation and more balance returned to the physical participants. Given the fact that the WTI and Brent both have extremely limited fungibility, it truly has become a de facto financial spec contract.
Margins for some contracts has increased 10 fold over the past 5 years and funds are carrying record positions. Increasing margins won't do anything. Regards, local
even that nitwit Obsama figured it out ( RTR ) 04/21 02:30PM OBAMA SAYS HAS ASKED ATTORNEY GENERAL TO CREATE TEAM TO "ROOT OUT" FRAUD, MANIPULATION IN OIL MARKETS THAT COULD HIT GAS PRICES ( RTR ) 04/21 02:31PM OBAMA, IN PREPARED REMARKS, SAYS TEAM'S FOCUS WILL INCLUDE OIL MARKET TRADERS AND SPECULATORS ( RTR ) 04/21 02:31PM OBAMA SAYS WILL MAKE SURE THAT NO ONE IN OIL MARKET IS TAKING ADVANTAGE OF THE AMERICAN PEOPLE FOR THEIR OWN SHORT-TERM GAIN
Listen to how stupid and idiotic all this sounds. Joe Public: "Traders/speculators are driving up the price of oil and getting rich at the cost of all of us average americans!" Trader: "Why don't you just buy oil futures and get rich?" Joe Public: "Because what if it goes down? Then I lose all my money right? Trader: "Ok, then go short and get rich!" Joe Public: "But if it goes up then I lose all my money right?" Trader: "Are you starting to see the flaw in your opening statement?" Joe Public: "Uggghh, fuck you, you guys are all ruining the country!" Trader: "Another beer please."
It's not the price of oil or gold or food which is rising, it's Bernanke who is just crushing the dollar. Make a chart, oil against gold, its a flat line. It's called inflation.