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Gas Prices R Skyrocketing Under Obama: Oil futures is just that, futures market. Price-per-barrel spikes oil this week have not affected domestic market yet. Iin face former Shell Oil Pres John Hofmeister predicted in Dec 2010, America would face $5/gal gas by 2012, a full month before the revolution in Egypt began. At the end of Bush’s two terms in office, prices were 9% lower than when he took office. The day before Obama was inaugurated average price of a gal was $1.83.
onstageagain 9 months ago
An overly simplified version of oil pricing that takes into account ZERO extraneous factors that determine oil prices.
One factor would be the value of the currency. Certainly, a major factor in pricing, right?
Prudo Bay, Gull Island look into it. Oil companies have more oil than OPEC, on tap, right there in Alaska. Don't you think that a position like that might just allow oil companies to artificially adjust prices?
And who owns a major shares of these oil companies? ROYALTY!
FreeinTX 2 years ago
manipulation of supply is possible but that doesn't change the argument it just alters the production curve.
the argument stands
mididoctors 2 years ago
Well, if the curve is price, then it changes the price, too.
Now, you have the ability to manipulate supply to range from a cut-off of 1/3 the energy needs of the nation to the flood of enough oil to cover 100% the 2/3 foreign oil "dependance."
Then, those EXACT SAME PEOPLE have the ability to buy any amount of oil on the, "free," market using money generated from loans backed by WORTHLESS derivitaves. That affects demand.
They affect supply and demand to control the PRICE curve.
FreeinTX 2 years ago
yes that could be the case only for the time period of the contract in question
otherwise they end up with the oil in their backyard
mididoctors 2 years ago
No, that is NOT true.
When they speculatively buy the oil, they recieved the paper, not the oil, for the futures on the oil they buy, then they issue "derivatives" which are backed by these peices of paper issued at the high prices, and when the oil price crashes back down, instead of oil being left in their back yard, the same people who speculated the oil, and issued the derivatives, get "bailout" money from the Federal Reserve and the Treasury and dump the oil on the American taxpayer.
FreeinTX 2 years ago
a future is a derivative?
what your saying is they sell it on... in some fashion in which case the reissued derivative (in what ever form) has to return the oil to "someones" back yard. the second tier of buyers in your scenario become speculators who own the oil. Just because someone managed to grab a chair when the music stopped doesn't make the oil disappear. everyone is following the pit price irrespective of how much speculative cash is flowing into it.
mididoctors 2 years ago
@FreeinTX Nice conspiracy theories. Now go listen to Alex Jones on your way to the Tea-bagger partry.
speculawyer 1 year ago