Oil speculation and oil prices
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Liberals seem to believe that speculators randomly "attack" various asset classes and voluntarily put billions of dollars in jeopardy. If speculators actually controlled prices (rather than underlying fundamentals), the price of oil, for example, would have never fallen from 146$/barrel to 33$/barrel in 2008. Of course, speculators merely reveal that various government interventions, which liberals endorse, are inherently self-defeating and actually make society poorer.
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What? The spot market is between the producers and buyers. There are NO speculators there.
The speculators provide liquidity in the FUTURES market. But no one buying anything, or providing liquidity, can determine price in the spot market. That's this guys (in the vid) premiere problem with his thesis.
Want proof of that? Warren Buffett bought billions worth of stock last year.
It couldn't determine price at all. The stocks still fell.
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For the love of Pete.
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Speculators aren't in the spot market.
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If all the contracts on the spot market are from speculators holding at 150 bucks a barrel, then what choice do I have as a consumer than to pay 150 bucks.
If I don't I go without oil.
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A.E.I is a failed think tank that has been proven wrong on every statement they have ever made and when proven wrong then you are not a THINK TANK at all. Just a bunch of dummies jerking off for Israel.
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Big Brother 'big Oil" is only raking in greenbacks faster than the IRS from every American and burning a hole in their pockets.
USD 600 billion disposable imcomes are taken off consumer spending. Obama is 100% this time around, burning oil money must change. Yes we can.
Wake up America ... or you will never get to wake up.
Love... Take Care.
OnePlanet Guy
the PunnacleMan
Dr. Patrick Vincent Tay
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Cooper is great! Robert Deniro has to play Cooper in a movie soon!!!
Newsweek ran an article several years ago that explained how Goldman Sachs and Morgan Stanley account for 35-50% of the cost of oil. Stinking rich investors collude buying up futures with no intent on taking on the product. Leave it to a Republican, John McCain, to defend the oil bubble created by selfish rich investors. Time to chase the money changers and usurers from the temple.
SOLISDEUS 2 years ago 3
It costs $5/barrel to mine light sweet crude like what's mined in the middle east. It costs $10 - 15/barrel to mine oil sands. The oil producers can easily handle an oil price of $20/barrel. Them demanding $80/barrel is just fucking greedy. I hope the free market takes hold and American oil companies make up the difference.
quuaa1 2 years ago 2