This week Obama proposed new measures to limit speculation in the oil markets. The new proposals would require oil traders to put up more of their own money for transactions, ask for more money for market enforcement and monitoring activities, and call for higher penalties for market manipulation. The impact that speculation, or investment money, is having on oil prices is a subject of much debate. So we wanted to ask.....
Loading ...As always we would love to hear your thoughts on this topic.
Every Success,
The INO Team
I used to work in the oil industry. I never witnessed manipulation, corruption, conspiracies, etc. of any kind. The government likes to pick on the oil industry because of the large amount of money these companies have and that most consumers need gasoline in their daily lives. But the government is always talking out of both sides of their hypocritical mouths when you realize the tremendous amount of capital is required to keep refineries, pipelines, service stations, etc. up to government safety and environmental requirements. It is truly a staggering amount of money. And don't forget how much money it takes to explore and develop profitable oil fields. I will never forget how much valuable employee time was wasted proving and testifying to the government/tax payer that we weren't gouging the public.
The laws of supply and demand will always win out in the long run.
OK, I am a bit confused. In the World Cup portfolio you are short oil, which does not make sense when you see oil going higher everyday because of its energy field. Also, you believe the dollar is getting stronger, which does make sense if the World Cup Portfolio is right. So it looks like to me that the trend is down with oil and up with the U.S. Dollar. Am I right, am I reading the trend correctly for now? One additional note, it looks like China's trend has turned up with a +100 on it's trend.
What a weasel. First Obaamaa is indifferent to higher oil prices as it supports his green energy leanings, then he tries to scapegoat traders for 'manipulation'. Just another example of why he is the worst President since Warren Harding.
I believe Bloomberg spent some time on this subject using historical charts of those people in the futures market who state they are speculators vs those who are buying or selling actual oil and their was an inverse coorelation between the speculators prices and price of oil. This was several weeks ago, but most of the speculators were at 150 a barrel while the price of oil futures were actually falling below 105. BTW, if you not actually taking delivery of or selling actual black stuff coming out of the ground, you are a speculator.
Interesting to see how the government may be the biggest short squeeze in oil history. I keep forgetting the Gov is full of lawyers and not traders. They try to stop manipulation in the markets buy passing laws that will manipulate the markets. Traders will go where the markets go. They don't care about the price of oil. They only care about where the price is going. I hope they know speculators speculate in all directions, not just up. I wonder if it ever occured to them that buying on margin does not have to include the exchanges.
Greetings Adam, and other fellow traders.
I will take a softer stance than what I´ve read regarding Oil regulation. First off, I don't think Obama is a bad president. I do think however he's been ILL ADVISED by his council on many different areas from the beginning of his term.
Secondly, I think we ALL KNOW the real reason why they are saying this. It's election time, and it doesn't behoove Obama to have high oil prices. It is evident that the politicians and the ill advisors are lying and cheating the public with false information so as to try and drive oil prices down. This we all know. It is obvious to me that the upcoming Obama re-election platform is going to be the economy. The politicians and Obama's advisors who are in bed with the billionaires have already managed to manipulate not only the markets, but the news as well (CNN). For the one's that don't know..........CNN is regulated by the U.S. GOV. "informally". All you have to do is listen to the "content - and - form" of the economic news.
My personal take is that Oil prices will head higher wether Obama and his advisors like it or not. I also suspect that as we see this and get closer and closer to reelection day..........these guys (politicians) will pull out other rabbits out of the hat; blaming everything except reality for the future increase of oil prices. The closer it gets to reelection day..........the more interesting this issue is going to get. Get ready!
Happy trading everyone!
Cheers,
Hugo.
I generally agree, but with a slightly less cynical view on the role of the Politian. The role of the politician is to stay on the right side of public opinion otherwise democracy doesn't work. Having said that looking at the price of oil since the Obama became president, it has not veered out of a narrow range of prices compared to prior that time even while everything else was shooting up and down 2% a day. I do believe prices are being manipulated, but not by traders or even the oil companies at least not on the scale required to change world prices.
Greetings Adam, and other fellow traders.
I will take a softer stance than what I´ve read regarding Oil regulation. First off, I don't think Obama is a bad president. I do think however he's been ILL ADVISED by his council on many different areas from the beginning of his term.
Secondly, I think we ALL KNOW the real reason why they are saying this. It's election time, and it doesn't behoove Obama to have high oil prices. It is evident that the politicians and the ill advisors are lying and cheating the public with false information so as to try and drive oil prices down. This we all know. It is obvious to me that the upcoming Obama re-election platform is going to be the economy. The politicians and Obama's advisors who are in bed with the billionaires have already managed to manipulate not only the markets, but the news as well (CNN). For the one's that don't know..........CNN is regulated by the U.S. GOV. "informally". All you have to do is listen to the "content - and - form" of the economic news.
My personal take is that Oil prices will head higher wether Obama and his advisors like it or not. I also suspect that as we see this and get closer and closer to reelection day..........these guys (politicians) will pull out other rabbits out of the hat; blaming everything except reality for the future increase of oil prices. The closer it gets to reelection day..........the more interesting this issue is going to get. Get ready!
Cheers,
Hugo.
Obama does't know which end of his backside is up!! (Just my opinion). I expect oil and gasoline prices are up due to the sucess of the world. The emerging countries/markets are stiving to have what we have been blessed with for many years. Hopefully after the election we can start drilling full speed, converting to LPG and exporting oil and LPG to reduce our deficit and develop something even better!
Boy! That last sentence just about covers it.Y R they screwing with ele. cars..When we have enough natural gas & oil in north america to last 100 years.I think it was back in the `70`s the company I worked for was building tanks for lng.There was one for a train loco. for testing.I don`t know why that did not catch on.Lower gas prices I supose.UPS got 50 lng powered trucks plus several other trucking companys this year. At that time Haliburtan was using liqiud nitrogen down Texes way for fracking.There is no polution with that &we can manufacter by compressing airWe made tanks for transporting it to the well site
Natural Gas is in abundant supply.... and look where its price is..... LOW
Drill baby drill!!!
I hope that the American people makes President Obama a one term president. In the Americas right now we have from south to north: Cristina Fernandez, Evo Morales, Chavez, Correa, Ortega, Fidel and in many ways Obama, all leftists. Do we have to start preaching again that socialism is one step to comunism ? Viva Mitt Romney !!!
Just another excuse from Obama to avoid doing his job/
GOVERNMENT INTERFERANCE IN FREE MARKETS AND BIG OIL WITH A BOGUS OIL SHORTAGE IN THE US. THE GULF OF MEXICO IS FULL OF CAPPED OFF WELLS WITH OIL APLENTY AND THATS NOT ALL THE OIL IN STORAGE BEYOND WHATS NEEDED FOR NATIONAL DEFENSE JUST ANOTHER SOCIALIST GOVERNMENT PREFARICATION
I agree with much of what JP says. However, it is important to note that the real problem is that we have decided to follow the policy of bailing out any entity deemed to big to fail and subsidizing numerous others. This has made for a crazy environment in which risk no longer bears its true value to the holder. Every risk taker should have requisite skin in the game. Risk should not be offset by bailouts or subsidies of any kind. In the case of oil, it should be allowed to find its true price. When it does, we will all adjust to it. Some things naturally go up with time and other go down. When we finally realize that failure must be an option that we never remove from the table, we will then see our economy and our country begin to right itself. Anything else is a charade.
What the heck is a speculator anyways?
Is it the company that sells a bucket full of stocks so it can buy new tankers but in process floods the market?
Is it someone that sees a shortage - or surplus - of a resource and invests accordingly but again adversely affects the market?
Is it my mom or pop that are anxious of their portfolios and sell at first sign of potential trouble to safe guard their few pennies - because the government provides lousy pensions and high taxes?
Speculators = the government! The French had it right in 1789.
Seems ever raising taxes on oil is the perview of con-gress...
Sooooooooooooooo What! The free market is all about speculation. These Socialist in this administration would go to no length to kill the free market. they blame everyone but themselves for screwing up the market and when something doesn't go thier way they would regulate it to make it go thier way and that is what I call manipulation. We will all pay a hefty price for it sometime in the future. Wait til the market crashes and they regulate and stop short selling and see what happens to the market. Here is what will happen if they regulate oil. Go back in history to the Jimmy Carter administration and you will see what happens. Gas is already $4.00 plus per gallon. How would you like it to be $8.00 a gallon which would be comprable to the late 70's gas price increases. I pumped gas back then and what a joke! Lic Plate ending in even numbers could get gas one day and Odd number plates the next. Unbelievable! here we go again. I can only hope what happens to President Obama is what happened to President Jimmy Carter. A one term president.
This is an example of stupid people attempting to regulate things they have no knowledge of. Market forces only give liquidity to enable to sell or buy when needed but do not cause market direction. The reason for high gasoline prices is limited refining capacity, limited production including OPEC and stupid limits on government owned reserves, and high demand overseas. If this current president wants to help oil prices, he could resign!!!!!!
I do blame speculators for selling off the oil stocks I own...effing speculators!