Welcome to ASFN Fan Forums! We're glad to have you here. Please feel free to browse the forum. We'd like to invite you to join our community; doing so will enable you to view additional forums and post with our other members.
Registered Members don't see these ads. Register now it's free!
Just caught the tail end of a discussion , on a South Florida radio show. Claimed CBS News aired a segment on oil speculators , and calculated their share of the cost of a gallon of gas as $ 0.47 for every dollar paid at the pump.
Their share of $ 4.00 gallon is $1.88 . For what? Their fee for raping the consumer.
47 % of the price at the pump.
Registered Members don't see these ads. Register now it's free!
__________________
In politics, nothing happens by accident. If it happens, you can bet it was planned that way.
Franklin D. Roosevelt
"Those who can make you believe absurdities can make you commit atrocities." --Voltaire
US regulators have announced plans to impose limits on oil trades overseas.
The US Commodity Futures Trading Commission said the London-based electronic exchange would have to comply with US rules.
The move comes as oil prices notch up record highs, amid fears that speculators are distorting the market.
As a result, fuel costs have shot up hitting the global economy. Airlines have been hit badly, with near record losses expected for 2008 in the US.
US airlines were forecast to report $10bn (£5bn) of losses this financial year as sky-high fuel costs erode profits, according to the industry group Air Transport Association (ATA).
Oil prices slipped from their record highs near $140 a barrel reached during Monday trade as investors were cautious ahead of plans by Saudi Arabia to increase production in July.
US sweet, light crude finished down 60 cents at $134.01, while London Brent settled 99 cents lower at $133.72.
Speculators to blame?
But, oil prices are still almost 40% higher than they were at the beginning of the year and, increasingly, this surge is being blamed on speculation by large investors, including hedge funds and banking giants.
They are being accused of pushing commodity prices way above the level they would trade at to satisfy supply and demand trends.
Representing US airlines, the ATA is one group pressing for tighter regulation and increased transparency in the energy markets.
Its head James May told a joint US Senate hearing on speculative oil trading that up to 200 US communities could lose airline service as a result of capacity cuts to save money.
"This nation's economy is inextricably linked to the viability of its air transportation system. If the airlines continue to spiral downward, so will the economy," he said.
Earlier, Air Canada announced that it would have to shed 2,000 jobs - a 7% reduction in its workforce - and ground 7% of its services to survive the rising fuel charges.
More disclosure
Under the plan announced by the US Commodity Futures Trading Commission (CFTC), trading of the West Texas Intermediate oil contract on the ICE Futures Europe - which hosts up to 30% of total trades - will by October be subject to stricter limits on individual positions.
It is hoped this will prevent the ability of a single entity to move oil prices.
Under the measures, European authorities will also share trading data with their US counterparts to improve transparency and crack down on market manipulation.
The ICE exchange said it would comply with US regulatory requirements subject to approval by the Financial Services Authority.
The acting head of the CFTC Walter Lukken said in testimony at a Senate hearing committee: "During these turbulent market conditions for crude oil, the environment is ripe for those wanting to illegally manipulate the markets," he said.
US regulators have announced plans to impose limits on oil trades overseas.
The US Commodity Futures Trading Commission said the London-based electronic exchange would have to comply with US rules.
The move comes as oil prices notch up record highs, amid fears that speculators are distorting the market.
As a result, fuel costs have shot up hitting the global economy. Airlines have been hit badly, with near record losses expected for 2008 in the US.
US airlines were forecast to report $10bn (£5bn) of losses this financial year as sky-high fuel costs erode profits, according to the industry group Air Transport Association (ATA).
Oil prices slipped from their record highs near $140 a barrel reached during Monday trade as investors were cautious ahead of plans by Saudi Arabia to increase production in July.
US sweet, light crude finished down 60 cents at $134.01, while London Brent settled 99 cents lower at $133.72.
Speculators to blame?
But, oil prices are still almost 40% higher than they were at the beginning of the year and, increasingly, this surge is being blamed on speculation by large investors, including hedge funds and banking giants.
They are being accused of pushing commodity prices way above the level they would trade at to satisfy supply and demand trends.
Representing US airlines, the ATA is one group pressing for tighter regulation and increased transparency in the energy markets.
Its head James May told a joint US Senate hearing on speculative oil trading that up to 200 US communities could lose airline service as a result of capacity cuts to save money.
"This nation's economy is inextricably linked to the viability of its air transportation system. If the airlines continue to spiral downward, so will the economy," he said.
Earlier, Air Canada announced that it would have to shed 2,000 jobs - a 7% reduction in its workforce - and ground 7% of its services to survive the rising fuel charges.
More disclosure
Under the plan announced by the US Commodity Futures Trading Commission (CFTC), trading of the West Texas Intermediate oil contract on the ICE Futures Europe - which hosts up to 30% of total trades - will by October be subject to stricter limits on individual positions.
It is hoped this will prevent the ability of a single entity to move oil prices.
Under the measures, European authorities will also share trading data with their US counterparts to improve transparency and crack down on market manipulation.
The ICE exchange said it would comply with US regulatory requirements subject to approval by the Financial Services Authority.
The acting head of the CFTC Walter Lukken said in testimony at a Senate hearing committee: "During these turbulent market conditions for crude oil, the environment is ripe for those wanting to illegally manipulate the markets," he said.
Now there is a piece of window dressing. Like rearranging deck chairs on the Titanic. Anything short of shutting down 100 % of the traders, and that ain't gonna happen, is a joke. The commodities market is a self serving monopolistic ponzi scam. Anyone with "liquid" assets is in this market, because it is quasi legal.
The specifics of this article makes the traders self policing. Hah!
__________________
In politics, nothing happens by accident. If it happens, you can bet it was planned that way.
Franklin D. Roosevelt
"Those who can make you believe absurdities can make you commit atrocities." --Voltaire
Oil speculators are speculating that the demand for oil will continue to grow in the future while supply does not. If the U.S. commits to drilling in those areas one could assume that an increase of supply in the future will calm speculators.
Oil speculators are speculating that the demand for oil will continue to grow in the future while supply does not. If the U.S. commits to drilling in those areas one could assume that an increase of supply in the future will calm speculators.
Unequivocally incorrect. Supply and demand left this equation long ago. It will burst and be eventually exposed as the scam that it is. In the meantime, we are the fools being seperated from our money.
Quote:
FACTBOX: Who invests in oil and other commodities?
Mon Jun 16, 2008 3:50am EDT
(Reuters) - Since the start of this year, oil prices have risen by around 40 percent to an all-time high of more than $139 a barrel.
Over the same period the fundamentals of supply and demand have shifted far less dramatically, prompting comment the market has been pushed higher by a wave of speculation.
It is very hard to prove to what extent the price is driven by speculators, as opposed to those with exposure to physical oil, because there is a lack of clear data on who is buying oil and other commodities.
The most prominent of the available data is from the Commodity Futures Trading Commission (CFTC), which distinguishes between commercial players (including oil, mining companies and other producers of raw materials) and non-commercial players, often considered synonymous with speculators.
These statistics do not tell the full story because the categories are blurred. For instance, banks that hedge exposure to the oil price because they loan money to oil companies, also have involvement in commodity indexes.
The indexes are used by long-term investors, such as pension funds and insurers, to gain access to the commodities complex.
Another major flaw in the CFTC data is that it only covers U.S. regulated trade.
British regulators do not release figures on market participants.
The following is a list of the players on the commodities markets apart from the resource companies.
HEDGE FUNDS
Hedge funds invest using aggressive strategies, including selling short. They stand in contrast to the more closely-regulated U.S. mutual funds, which also invest in assets on behalf of institutions or individuals, but by using more conservative strategies.
MACRO HEDGE FUNDS
Global macro hedge funds take directional bets in stock, bond, currency and commodity markets using economic trends.
Global macro hedge funds probably have the widest of all hedge fund strategies. Their managers can take positions in any market or instrument anywhere in the world.
George Soros and Paul Tudor Jones are among the more famous macro hedge fund managers.
FUNDS OF FUNDS
Those wary of the high-risk strategies of hedge funds could choose to use a fund of funds, which spreads the risk by investing in a range of hedge funds, including those specialized in commodities.
PENSIONS AND INSURERS
Pensions and insurers are a relatively recent arrival on the commodity markets.
Traditionally cautious players who preferred to gain commodity exposure by buying into the equities of raw material companies, they have become a significant presence on commodity futures markets during the current sustained rally begun around 2002.
They have begun to experiment with active and passive positions, but traditionally have taken long-only positions in commodity markets.
HIGH NET WORTH INDIVIDUALS
A high-net worth individual is generally defined as an individual with investable assets, excluding property, of more than $1 million.
RETAIL INVESTORS
Institutions and high-net worth individuals have formed the bulk of commodity investment, although analysts say interest from smaller retail investors has increased.
Commodity ISAs or Exchange-Traded Funds particularly cater for this market.
An Individual Savings Account (ISA) is a British financial product designed for investment and savings with a favorable tax status.
Oil speculators are speculating that the demand for oil will continue to grow in the future while supply does not. If the U.S. commits to drilling in those areas one could assume that an increase of supply in the future will calm speculators.
The amount of assumptions to get to this logical statement is pretty vast.
The speculators are typically a couple of years ahead on their price estimates. Offshore drilling and ANWR would not be fully functional in that time span.
The federal government can remove the ban for offshore drilling, but it still needs state approval. California and Florida have been adamant about this not happening.
Next there is nothing that says giving drilling rights offshore or in ANWR would actually increase the current supply of crude on the market. Many foreign producers can just reduce their supply to keep the cost per barrel inflated. This would still keep the demand/supply curve in favor of the producers, just for some longer period of time. Costs at the pump remain the same.
As a gasoline consumer, I see no benefit at all for me to allow offshore drilling or drilling in ANWR. I highly doubt my gas prices will drop.
The amount of assumptions to get to this logical statement is pretty vast.
The speculators are typically a couple of years ahead on their price estimates. Offshore drilling and ANWR would not be fully functional in that time span.
The federal government can remove the ban for offshore drilling, but it still needs state approval. California and Florida have been adamant about this not happening.
Next there is nothing that says giving drilling rights offshore or in ANWR would actually increase the current supply of crude on the market. Many foreign producers can just reduce their supply to keep the cost per barrel inflated. This would still keep the demand/supply curve in favor of the producers, just for some longer period of time. Costs at the pump remain the same.
As a gasoline consumer, I see no benefit at all for me to allow offshore drilling or drilling in ANWR. I highly doubt my gas prices will drop.
Exactly correct sir. I might also add that there is no emotional incentive for the oil/gas distributors to give this new found oil/gas back to Americans at a discounted rate. None whatsoever. Just hand the hen house eggs to the foxes at the door.
OPEC ( Saudis ) control 40 % of the world supply. They like the price where it is at. Oil production in Iraq and Iran, which is , minimally, 4 times the size of Saudi reserves, is being politically and purposely suppressed. If the world oil production is currently being suppressed, which makes it a closed loop market, why would offshore & ANWR drilling have any affect? The oil market is far from being a free enterprise system. It is monopolistic and in constant violation of anti trust activity. There is plenty of potential for competition, but that urge seems to fade when your fields and infrastructure get blown back into the stone age.
Yes sir.
__________________
In politics, nothing happens by accident. If it happens, you can bet it was planned that way.
Franklin D. Roosevelt
"Those who can make you believe absurdities can make you commit atrocities." --Voltaire
Nothing will lower oil prices right now. However a concerted effort to drill our own oil, strengthen the dollar, use oil more efficiently, and develop "viable" alternative energy will lower prices in the future. Standing idle will surely do nothing now and cause prices to rise even higher in the future.
The big liberal cliche being used is, "We can't drill our way out of this mess".
We certainly can't conserve our way out of this mess. We certainly can't grow(corn) our way out of this mess.
Linear Mode
