Comments on: Will oil prices crash soon? http://www.moneyhighstreet.com/feature/will-oil-prices-crash-soon/ The latest personal finance news and information Wed, 08 Feb 2012 09:57:46 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Steve L http://www.moneyhighstreet.com/feature/will-oil-prices-crash-soon/#comment-191 Steve L Wed, 02 Jul 2008 15:57:37 +0000 http://www.moneyhighstreet.com/?p=446#comment-191 Re: Ted's speculative conspiracy theory. It sounds informed & logical enough- but does the math support it? commodity traders/speculators represent a small fraction (200-odd billion$?) out of a worldwide market of many trillions$. Seems too big a market for anyone to corner if they wanted to. Maybe speculation in futures contracts is the healthy free part of this market- that helps prevent actual shortages by reducing demand and funding new supply - Working against this are governments- restricting physical access, subsidizing prices, confiscating oil profits, and attempting to restrict speculation. Nobody really predicted this price/timing, or knows what will happen next- anyone who thinks they know, is free to trade on that wisdom and make a fortune- I never thought oil would pass $100 so I have no clue! but If I thought it would crash - I'd be out buying a nice chevy suburban while they're cheap! Re: Ted’s speculative conspiracy theory.

It sounds informed & logical enough- but does the math support it?
commodity traders/speculators represent a small fraction (200-odd billion$?)
out of a worldwide market of many trillions$. Seems too big a market for anyone to corner if they wanted to. Maybe speculation in futures contracts is the healthy free part of this market- that helps prevent actual shortages by reducing demand and funding new supply – Working against this are governments- restricting physical access, subsidizing prices, confiscating oil profits, and attempting to restrict speculation.

Nobody really predicted this price/timing, or knows what will happen next- anyone who thinks they know, is free to trade on that wisdom and make a fortune- I never thought oil would pass $100 so I have no clue! but If I thought it would crash – I’d be out buying a nice chevy suburban while they’re cheap!

]]> By: Ted McKeown http://www.moneyhighstreet.com/feature/will-oil-prices-crash-soon/#comment-174 Ted McKeown Wed, 25 Jun 2008 15:25:42 +0000 http://www.moneyhighstreet.com/?p=446#comment-174 Could it be that Treasury Secretary Henry Paulson is turning a blind eye to this situation so as to give his friends time to cash in thier investment chips. It's a get rich scheme and not much less obvious than the ENRON pyramid scheme. There is no way supply is causing this gas crisis. I put the full blame on speculators and commodities traders. They know the loop holes like the ENRON LOOPHOLE. and appearently there are other loopholes that allow traders to manipulate trading. I am sick of the smoke and mirrors. The meeting in Saudi Arabia hasn't achieved any substantial results from what I can see. Oil prices are still going up. There must be something else that's driving prices up and I think I know what it is. Contrary to what US Energy Secretary Samuel Bodman says I don't think supply and demand are really causing the problem. There are to many other factors at play here. Too many middle men skimming profits. Too much manipulation of supplies and inventories. Although oil appears to be a good hedge against inflation, a lower dollar and a low oil supply, in reality nothing could be farther from the truth. Our oil supply is becoming less of an issue because inflation is causing a surplus of gas. The main thing driving inflation is high oil prices and as inflation goes higher investors buy more oil driving inflation higher again. Some experts predict this will trigger the worldwide recession. This will result in lower gas consumption and it will free up more gas supplies.. I am no expert but even I can see the writing on the wall. Investors are going to loose their shirts on oil. We may be looking at another ENRON. Hedge funds will topple leaving old age pensioners with nothing. The government won't be able to bail them out this time because the cost would be far to great. The CFTC and ICE will be too slow to react to the cracks forming in commodities trading so the govenment will finally step in. By that time it will probably be too late. www.nbtv.ca Could it be that Treasury Secretary Henry Paulson is turning a blind eye to this situation so as to give his friends time to cash in thier investment chips. It’s a get rich scheme and not much less obvious than the ENRON pyramid scheme. There is no way supply is causing this gas crisis. I put the full blame on speculators and commodities traders. They know the loop holes like the ENRON LOOPHOLE. and appearently there are other loopholes that allow traders to manipulate trading. I am sick of the smoke and mirrors. The meeting in Saudi Arabia hasn’t achieved any substantial results from what I can see. Oil prices are still going up. There must be something else that’s driving prices up and I think I know what it is. Contrary to what US Energy Secretary Samuel Bodman says I don’t think supply and demand are really causing the problem. There are to many other factors at play here. Too many middle men skimming profits. Too much manipulation of supplies and inventories. Although oil appears to be a good hedge against inflation, a lower dollar and a low oil supply, in reality nothing could be farther from the truth. Our oil supply is becoming less of an issue because inflation is causing a surplus of gas. The main thing driving inflation is high oil prices and as inflation goes higher investors buy more oil driving inflation higher again. Some experts predict this will trigger the worldwide recession. This will result in lower gas consumption and it will free up more gas supplies.. I am no expert but even I can see the writing on the wall. Investors are going to loose their shirts on oil. We may be looking at another ENRON. Hedge funds will topple leaving old age pensioners with nothing. The government won’t be able to bail them out this time because the cost would be far to great. The CFTC and ICE will be too slow to react to the cracks forming in commodities trading so the govenment will finally step in. By that time it will probably be too late. http://www.nbtv.ca

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