Did Speculation Fuel Oil Price Swings?

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SamLinder's picture
SamLinder
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Did Speculation Fuel Oil Price Swings?

(CBS) 

The historic swings in oil prices
last year were the result of financial speculation from Wall Street and
not supply and demand say several sources from the financial and oil
communities.

Leading the charge in making huge bets on the price of oil were investment banks and hedge funds, these sources tell 60 Minutes correspondent Steve Kroft for a report to be broadcast this Sunday, Jan. 11, at 7 p.m. ET/PT. 

 

Read the rest here:

http://www.cbsnews.com/stories/2009/01/08/60minutes/main4707770.shtml?so...

 

barrt's picture
barrt
Status: Silver Member (Offline)
Joined: Aug 25 2008
Posts: 171
Re: Did Speculation Fuel Oil Price Swings?

Great post Sam and something ive been wondering about for a while.

I think there is a very good chance that this whole thing has been engineered from the start. If that is so then there's a good chance that the people who pushed up the oil price are the ones behind it all.

To quote the article "Michael Masters, a hedge fund manager who tracks the flow of investments in and out of markets, noticed huge amounts of money going from stocks and bonds into oil futures. " Cant Mr M tell us who it was?

those guys have/ had such power, all you had to do was organise them, get them behind your scheme and you could change the world.

But of course to buy oil you have to first buy dollars, the rise and fall of the oil price is a mirror of the fall and rise of the dollar. Still, that doesnt mean that this was all engineered from the start

Just because your paranoid, doesn't mean they're not after you Surprised

eb_riesling's picture
eb_riesling
Status: Bronze Member (Offline)
Joined: Oct 28 2008
Posts: 53
Re: Did Speculation Fuel Oil Price Swings?

I think you guys are trying to sooth your souls by looking for scapegoats.  How is it that 60 min did not mention the fact that conventional crude has been flat for the last 4or5 years? or that Mexico is in terminal decline and will soon not be able to export to the US.  Speculators - I can't believe that is the best they can do!

 It seems to me that the vast majority of people are still in denial and want the party to continue!  This past summer was the shots across our collective bows before the oil wars begin.

 

E

 

castlewp's picture
castlewp
Status: Gold Member (Offline)
Joined: Oct 7 2008
Posts: 304
Re: Did Speculation Fuel Oil Price Swings?

Guys, I don't think you realize how censored our media really is especially 60 Minutes.  This clip made me puke and I was an avid fan before.

Bill

Pandabonium's picture
Pandabonium
Status: Bronze Member (Offline)
Joined: Aug 30 2008
Posts: 87
Re: Did Speculation Fuel Oil Price Swings?

I second the comments of eb_riesling and castlewp.  Also....

Take a listen to the interview of Nate Haggens on "The Reality Report" which is available on globalpublicmedia.com  -

 http://globalpublicmedia.com/reality_report_nate_hagens_on_the_financial_meltdown_and_fossil_fuels

In an interview a year prior, Nate correctly predicted an economic debacle and that oil could go down to the $50 range. 

I urge readers on this site to also visit globalpublicmedia.com (which posted an interview with Chris by the way) and theoildrum.com (a comment on which is how I found this website)  to help keep abreast of such issues.

Under the current conditions, we can expect wild swings in the price of fossil fuels.  Things are tight and a small change in the supply or the demand situation will cause a huge move in price. 

As for TV, I killed mine many years ago and encourage others to do the same.  Take the money you save on cable service and give it to sites like this one who will tell you the truth. 

Cheers.

 

 

EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
Re: Did Speculation Fuel Oil Price Swings?

Hi eb_-

Expanding on your thoughts - I suspected the whole price hike - then decline was a scam by companies to increase profits to buy out smaller companies (make a lot of money then squeeze the little guys). Any company have that much $ - has some groupjust for analysis of future options and company direction - and yeah fannie & freddie knew it was coming, so did all the others.

These oil companies know Venezuala & Mexico are in decline (so does everyone else - thanks to the oil drum, peak oil and others) - how would you play it if the product you sell will soon become scarce in the vicinity you sell the most? 

I also suspect it is only a matter of time (maybe 2-3 years?) before Saudi's no longer trade gas/oil in US dollars (which means are prices will start huge flucuations as our dollar trades against other currancies & devalues).

And, since the US imports 2/3rds of its gas/oil now and Mexico & Venezuala are reducing their exports here -  well - that shoots up $ demand for what's left.

IF we are smart (and don't panic) then we will use resources for building alternatives - we'll have those a lot longer and their energy production price remains the same once installed. IF we don't use the gas/oil (we now have) wisely, then the end result is war, famine and worse.

 

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