The Price Of Oil
January 12, 2009 10:17 AM
The historic swings in oil prices last year were the result of financial speculation from Wall Street and not supply and demand. Steve Kroft investigates.
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See all 34 CommentsNow, the demand is the same this year as last, that supply is days ahead of last year and still the price went up for the summer adjustment. It wasn't as high as last year but still it went up. How can anyone with a brain and any critical thinking skills ask us to believe that the free market is at work here? Supply/demand is not driving the price adjustments. The refineries are only operating at 85-89% capacity and still the supply is increasing. The demand is basically flat. So if the free market principals are in control, the price should trend down until a balance point is reached, which hasn't happened yet. The price should still be dropping. But it isn't. So, more than meets the eye or more than what we expect is going on.
To expect that any less control or regulations will be enacted is ludicrious. We need to put the same kind of controls in place to regulate the important commodities that affect our economy as the stock market has. Automatic "stop-points" when wild swings occur. This should serve to smooth out any big spikes like when short sellers have to cover their a@@'s.
Thank you.
Our country, including the left winged CBS emphatically blamed George W Bush and Dick Chaney. Since they are not in this report of the commodities market, should you not publically apologize? An make note: the new administration will send oil prices through the roof?.very very soon. Please report on that one too. Thank you for the opportunity, I will notify Shawn Hannity as well.
5) production, unlike the claims of the piece, did indeed fall. In fact, as price rose during 2007, both U.S., Persian gulf and worldwide oil production was below 2006 levels. As the super spike began in 2008, the Persian Gulf region increased production roughly 10% to capture the high prices. What is alarming is that U.S. production again fell (could not capture high prices) and worldwide production gained only 6%. despite what the 60 Minutes piece said, world demand for oil waned only slightly during the spike period and production was only then ramping up. Let''s not forget, in Q2 2007 demand fell only to accelerate again to record highs 6 months later.
6)"How could the 60 Minutes crew have missed all of these things?"
Because they are part of the elites. Elites believe that anytime the price for oil goes up it is because of "greedy'' speculators. Curious that the recent collapse in oil prices does not seem to be have been caused by greedy speculators who are shorting oil.
1) No one has ever been able to explain how speculators can influence spot prices without taking delivery. The reason is that they can''t. It''s an absurd assertion.
2) References to the volume of futures trades as "evidence" that speculation is driving prices is equally stupid. For every buyer there is a seller. The volume of sells increased at the same rate as the volume of buys.
3)The $25 dollar rise in oil on Sept. 22nd was horrendous journalism, and it is obvious they have no clue what caused it. I was watching the spot and 2 forward month contracts when that happened. Within 30 seconds, the reason for that rise was quite obvious. The current contract was due to expire that afternoon. Shorts were forced to cover. There was little volume because the real trading was occurring in the next forward month. So a short squeeze occurred. The next day, the oil contract switched months, and the price was back where it was.
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Questions:
The Feds need to investigate the incomes and tax reports of the major oil companies during the historic 2008 gasoline price spike. Such an event had to be planned, and for a purpose.
1. Which oil companies paid out unusual amounts of the dollars during/following gasoline price spike period?
2. Were the huge amounts paid out traceable to foreign biz-powers/oil suppliers? To whom paid? To whom among Oil Companies not immediately paid?
3.Were the huge amounts that were paid out traceable to the Obama Election Campaign, indirectly or otherwise?
4.Obama had unlimited dollar resources during the Election . . . where did they originate? Through whom?
The mysteries of both, cause of the oil/gasoline price spike and source of Obama''s unlimited Election Resources, are historically related by time; and, along with the unusually large size of the Election Pot, will be forever suspect as helping Obama to buy the Election results.
5. Who is powerful, honest and patriotic enough to investigate?
Goldmans Sachs CEO was Henry Poulson, the guy in charge of the US Treasury, who just "secretly" distributed $Billions to his bank buddies including Goldman Sachs to "buy out the competition". I hope 60 minutes, in the very near future, expose these thieves of American wealth for the benefit of the likes of Hedge Fund managers and Goldman Sachs. It wasn''t Enron,it was Phil Gramm who pushed the laws through Congress paid off by Enron and conspirators like Hedge Funds who made a lot of money. Our government has sold out its people for the few who made $Trillions with the passage of these two laws.
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