J'accuse!!!

[Zkribbler]

Remember a few months ago, we were debating whether $140/barrel oil was the result of supply-and-demand or the work of evil speculators?

Well, supply and demand is about the same. But oil is now down below $100/barrel.

To me, this indicates that $40/barrel was inflated profits being syphoned off by speculators.

While speculators do serve a purpose, it looks like they were out of control here and that more regulations of them are necessary.

[Kuciwalker]

...

Jesus Christ, Zkrib. Do you understand what speculators do?

[Jaguar]

Sweet fancy Moses in a sidecar, you're clueless.

[Zkribbler]

Originally posted by Kuciwalker
...
Jesus Christ, Zkrib. Do you understand what speculators do?

When they operate properly, they provide markets, smooth out prices, and in general, help the flow of commodities.

But when they're out of control, allowed to operate on razon-thin margins, they can -- as here -- artificially cause prices to spike.

And here, where the commodity was energy, the ripples of inflation flowed out into food, and virtually everything that travels. Airlines are teetering on insolvency; the SUV market has crashed; the use of ethonol is being questioned; demands are being made to drill in ecologically sensative areas.

[Elok]

It's not speculators that did it, it's the Illuminati. And I have just as much proof as Zkrib.

[Zkribbler]

Originally posted by Elok
It's not speculators that did it, it's the Illuminati. And I have just as much proof as Zkrib.

Elok's found out. Now we'll have to kill him.

[Kuciwalker]

Originally posted by Zkribbler
When they operate properly, they provide markets, smooth out prices, and in general, help the flow of commodities.

But when they're out of control, allowed to operate on razon-thin margins, they can -- as here -- artificially cause prices to spike.

I'll take that as a 'no'.

[Asher]

Union execs don't need to know how economics work. All they need to know is greed is good.

[Zkribbler]

Originally posted by Kuciwalker


I'll take that as a 'no'.

I take it that you believe that speculators can swarm a commodity, buying heavily on highly leveraged margin, and it won't affect the price?

[Colon™]

Re: J'accuse!!!

Originally posted by Zkribbler
Well, supply and demand is about the same.

...

Feeling the Pinch: Gasoline Prices Vary (a lot) from Country to Country

Whether Americans decided against vacations this summer—or at least made them more efficient or closer to home (“staycations”)—or are carpooling or using more public transportation, the message is clear: sustained high retail prices for motor gasoline are having an impact on the American driver. U.S. gasoline demand, according to the Energy Information Administration (EIA), declined by 2.3 percent in May and 4.4 percent in June, compared with the same time periods a year ago. This reflected the largest decline in year-ago gasoline demand in May since 1980 and the fifth-largest year-ago decline in any May since at least 1945. For June the comparisons are even more dramatic, with the year-ago decline this June the largest since 1980 and the third-largest since 1945.

Americans have also been consuming less oil overall. Total oil consumption data from the first half of 2008 compared with the first half of 2007 show that Americans consumed, on average, 925,000 barrels per day (or 4.5 percent) less. Over the same period, the United Kingdom, France, and Italy also posted continued declines in oil consumption, while consumption in the rest of the Organization for Economic Cooperation and Development (OECD) countries was relatively flat. According to EIA’s latest Short-Term Energy Outlook OECD countries consumed about 1 million barrels per day less in the first half of 2008 than in the first half of 2007.

Over the same period, non-OECD countries accounted for about 1.3 million barrels per day of increased consumption, with significant growth taking place in China, the Middle East, and Latin America. The reasons for this increase include the faster-growing economies of the developing world and their energy-intensive industrial sectors. A key reason for the sharp contrast in oil consumption trends in the OECD and non-OECD countries is differences in retail prices, as shown in the figure below.

[Kuciwalker]

Originally posted by Zkribbler


I take it that you believe that speculators can swarm a commodity, buying heavily on highly leveraged margin, and it won't affect the price?

Do you have any idea why speculators "swarm a commodity", and why the price increase is a good thing?

[Imran Siddiqui]

Colon, what do you think you are doing bringing facts in here?!

[Victor Galis]

Not only is demand down right now, future demand is also being predicted to be lower due to the crash.

[Japher]

demand will decrease and continue to do so as long as we cut our fuel with sheit like ethanol... the more the better I say.

[snoopy369]

You probably like bartenders cutting your whiskey, too...