Comments on: Oil Speculators Aren’t The Problem http://allfinancialmatters.com/2008/06/30/oil-speculators-arent-the-problem/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 21 Nov 2009 13:00:57 -0800 http://wordpress.org/?v=abc hourly 1 By: Billm http://allfinancialmatters.com/2008/06/30/oil-speculators-arent-the-problem/comment-page-1/#comment-328367 Billm Tue, 01 Jul 2008 21:13:32 +0000 http://allfinancialmatters.com/?p=2623#comment-328367 Supply and Demand Sets Oil Prices – If You Believe That, I have a Bridge in Brooklyn I Want to Sell You! Next time you have to buy diesel fuel, home heating oil or $4 plus gasoline. Ask yourself this question: Are crude oil, heating oil, diesel fuel and gasoline necessities, or just ordinary speculative commodities? If they're the former, how can they be the latter? How can anyone buy into supply and demand setting oil prices when the markets are overwhelmed by small speculators, institutional investors, commodity index funds, large hedge funds and Wall Street investment banks, all buying massive amounts of oil contracts? Why can't the Bush administration and Congress see this fundamental problem? We also have the b.s. of “geo-political” concerns and government disseminated bogus “inventory” numbers. More on these factors at www.useconomycrisis.com Supply and Demand Sets Oil Prices – If You Believe That, I have a Bridge in Brooklyn I Want to Sell You!

Next time you have to buy diesel fuel, home heating oil or $4 plus gasoline. Ask yourself this question: Are crude oil, heating oil, diesel fuel and gasoline necessities, or just ordinary speculative commodities? If they’re the former, how can they be the latter? How can anyone buy into supply and demand setting oil prices when the markets are overwhelmed by small speculators, institutional investors, commodity index funds, large hedge funds and Wall Street investment banks, all buying massive amounts of oil contracts? Why can’t the Bush administration and Congress see this fundamental problem? We also have the b.s. of “geo-political” concerns and government disseminated bogus “inventory” numbers. More on these factors at http://www.useconomycrisis.com

]]> By: "Mo" Money http://allfinancialmatters.com/2008/06/30/oil-speculators-arent-the-problem/comment-page-1/#comment-328300 "Mo" Money Tue, 01 Jul 2008 17:43:15 +0000 http://allfinancialmatters.com/?p=2623#comment-328300 I don't beleive that the speculators are not the problem. But in this complex issue, they are certainly part of the problem. My understanding is they buy futures on 5% margin. Just the name speculator says they are looking to make money with out actually buying anything! I don’t beleive that the speculators are not the problem. But in this complex issue, they are certainly part of the problem. My understanding is they buy futures on 5% margin. Just the name speculator says they are looking to make money with out actually buying anything!

]]> By: TIL http://allfinancialmatters.com/2008/06/30/oil-speculators-arent-the-problem/comment-page-1/#comment-328230 TIL Tue, 01 Jul 2008 14:16:37 +0000 http://allfinancialmatters.com/?p=2623#comment-328230 If speculators are not the problem, why does oil go up $5 even $10 in a day, when there is no change in supply and demand? If speculators are not the problem, why does oil go up $5 even $10 in a day, when there is no change in supply and demand?

]]> By: Phil http://allfinancialmatters.com/2008/06/30/oil-speculators-arent-the-problem/comment-page-1/#comment-328108 Phil Tue, 01 Jul 2008 09:08:19 +0000 http://allfinancialmatters.com/?p=2623#comment-328108 While Oil Speculators are not *THE* problem, they are certainly part of it: "Is Oil the Next 'Bubble' to Pop?", Wall Street Journal, 2008-06-04. - Where it's stated, "Lehman Brothers cites evidence that institutional investors, including sovereign-wealth funds, have been increasing their exposure to commodities. The investment house calculates that from January 2006 to mid-April 2008, more than $90 billion of incremental investor flows was devoted to assets under management by commodity indexes. It said for every $100 million in new inflows, the price of West Texas Intermediate, the U.S. benchmark, increased by 1.6%." See also the Econobrowser web site: http://www.econbrowser.com/archives/2008/05/oil_bubble.html But then a better article on the Econobrowser discusses oil pricing fundamentals to give a more rounded picture: http://www.econbrowser.com/archives/2008/05/oil_price_funda.html While Oil Speculators are not *THE* problem, they are certainly part of it:
“Is Oil the Next ‘Bubble’ to Pop?”, Wall Street Journal, 2008-06-04. – Where it’s stated, “Lehman Brothers cites evidence that institutional investors, including sovereign-wealth funds, have been increasing their exposure to commodities. The investment house calculates that from January 2006 to mid-April 2008, more than $90 billion of incremental investor flows was devoted to assets under management by commodity indexes. It said for every $100 million in new inflows, the price of West Texas Intermediate, the U.S. benchmark, increased by 1.6%.”

See also the Econobrowser web site: http://www.econbrowser.com/archives/2008/05/oil_bubble.html

But then a better article on the Econobrowser discusses oil pricing fundamentals to give a more rounded picture:
http://www.econbrowser.com/archives/2008/05/oil_price_funda.html

]]> By: Philip http://allfinancialmatters.com/2008/06/30/oil-speculators-arent-the-problem/comment-page-1/#comment-327845 Philip Mon, 30 Jun 2008 20:08:05 +0000 http://allfinancialmatters.com/?p=2623#comment-327845 There are just too many different articles that still appear to be legitimate that I don't know what to think. I like to see what people speak that goes beyond the politicians speaking that don't know as much as they try to show. There are just too many different articles that still appear to be legitimate that I don’t know what to think. I like to see what people speak that goes beyond the politicians speaking that don’t know as much as they try to show.

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