Rick Santelli oil speculation debunk

simple explanation why oil speculation is not the reason for current price rises

Originally posted on Youtube by mididoctors

Category:

Education

Tags:

• oil
• speculation
• peak
• debunk
• TOD

[dryejd]

Santelli for president!

[CaptainAhab789]

Speculators are just entrepreneurs who help find the market clearing price. If we drilled for oil instead of banning most offshore drilling, then gas would only be $1, but that wouldn't help the agenda of T. Boone Pickens and General Electric.

[TickleMehNancy]

A lot of big banks were leasing tankers and stuff to hold oil in. So Santelli may be right but that doesn't mean big speculators weren't getting it delivered.

[mididoctors]

@finallytherock that would require that the producers stockpile production and such storage would be cumulative. If the argument is they fake production then the effect would be nothing because the total expiration date delivery oil would be in effect in a distinct separate market

[finallytherock]

@chaserehn a cash settled futures contract does not have any delivery. Speculation can, and does, drive oil prices up and down.

[jizzmonger]

@chaserehn

Sure and some Hedge Funds have tanked for that reason.

Other than that, Morgan Stanley made 1 billion dollars last year trading oil contracts.

That's 1 billion the actual producers and refiners don't get and 1 billion more the U.S. population had to pay and that was to 1 financial institution alone.

What a total waste shoveling all that money over to worthless, speculative parasites.

[chaserehn]

If you demand that much then yes the price will go up. But if you don't have an actual use for that oil... Look out, you may loose you ass trying to get rid of it.

[jizzmonger]

Santelli's entire argument is that since people will pay 4 bucks a gallon for Gas that that is the price the market is paying and that speculation isn't controlling the price, it's merely finding the true market price of the oil.

So no, Santelli's argument (no matter how much you are in love with him) does not show that speculators don't affect the price of oil.

[jizzmonger]

If 100 contracts for a certain time frame of delivery are available via the different means of getting oil where it needs to be and I own all 100 contracts, what option does the refiner have other than to pay the price or go without oil?

Oil markets are sensitive in that way because producers don't pump much more than what is needed.

They leave it in the ground where storage costs are free.

[chaserehn]

Speculation cannot drive up price. Only supply or demand can do that. I can go in and speculate and buy a $1 stock for 3$ and if i buy enough it may go up for a bit but the price will come down to what its worth and someone will lose there azz

[corymd3470]

And yes the US deserves the fate that developing nations face (capital flight) when they're completely irresponsible and refuse to get their shit in order. And I don't give a flying fuck if people won't admit that. That's their problem. And in the end it doesn't matter what they think because it's going to happen anyway.