Ha! I noticed the correction:
This version CORRECTS SUBS 3rd graf to correct price, $102 sted $1.02. Moving on general news and financial services.)
I wish oil was selling at $1.02 a barrel. How does $0.04/gallon sound?
As for the speculators... yep. Ever since stocks have been traded, that's happened.
As for the speculators... yep. Ever since stocks have been traded, that's happened.
Not just that, the downturn in the stock market (thanks to subprime mortgage crap) sent inventors from the stock market to the commodities market. Oil was seen as safe and something that wouldn't loose value quickly until the stock market rebounded (thus spoke NPR).
Those who did the study and drew the conclusion don't understand economics.
Well I need someone to blame. Therefore, I nominate NPC Dave as our scapegoat. An army of poodles has been deployed.
I say we all go to the oil companies and steal back their record profits.
The study fails to account for the actual cause of the increase in prices, the data is fine, but the conclusion is wrong.
Speculators jumped in because oil supplies were threatened by a war between the US and Iran. If the war had happened, the supply of oil from the Persian Gulf would easily get cut off, and then there would have been a massive shortage.
Speculation actually kept the price swings from getting worse than they otherwise would have been, more people buying oil to hold in case of a sudden decrease in supply actually prevents greater swings and spikes in short term prices.
Those who did the study and drew the conclusion don't understand economics.
And speculators jumped in because militants threatened oil supplies in Nigeria..... and speculators jumped in because Russia launched a military adventure into Georgia.... and speculators jumped in because workers went on strike in the North Sea.... but in reality events similar to these have pervaded the last twenty years of history. Iran warred with Iraq. The Soviet Union has been a mess. Nigeria is not exactly an icon of peaceful bliss. The speculators have gone too far over the last few months.... someone sneezed near an oil drum in Nigeria and prices went up.....an unidentified boat approached a U.S. warship in the gulf and prices went up..... the head of OPEC said oil MAY go up to 150 dollars a barrel and prices went up based on his stray comment.... Speculators panic every time any country that produces oil is confronted with a minor problem.... if it rains too much in Nigeria... "Massive prehistoric storms threaten oil output in Nigeria. Prices skyrocket!!!" If the president of Iran so much as mentions the word "nuclear" in a sentence.... "Iran threatens U.S. with the possibility of eventually maybe making a nuclear bomb and then possibly eventually maybe using the bomb if one of seventy thousand possible events occur. Experts say using an alternate time line computer Iran may try to conquer Mexico. Oil surges!!" I'm so sick of "experts." Who's throwing this term around? Price goes up because speculators speculate about some falsely perceived threat to oil supplies but when that threat passes the prices do not drop accordingly. Then the media has the stones to blame increased demand in India and China for every socioeconomic problem afflicting our society. Food prices up....increased demand in India and China.... Gas prices up...increased demand in India and China.... traffic.... increased demand in India and China. I read some article that attributed the increase in the price of rice to the increased demand in India and China for middle class foods. Since when is rice the food of the middle class?
