Search results

Oil is a financial bubble, it has been documented to death, everyone knows it and for some reason TPTB pretend it's not there. This happens due to broken price discovery mechanism. Even oil producers are saying it LOUD AND CLEAR for for the past 1.5yr: Yesterday from Reuters: ------...

Oil is a financial bubble, it has been documented to death, everyone knows it and for some reason TPTB pretend it's not there. This happens due to broken price discovery mechanism. Even oil producers are saying it LOUD AND CLEAR for AGES everyday: Yesterday from Reuters: ------...

More on the same subject: http://www.rferl.org/featuresarticle/2006/04/FF6F88B2-9F0C-4913-B4D0-5ED2A705D514.html Interview: Oil Expert Explains What's Driving Record High Prices By Jeffrey Donovan Azerbaijan -- Caspian oil derricks, pollution (AFP) Oil prices have climbed steadily since...

Basically, everyone knows the oil price is due to "investor" demand. As long as -due to small spare production capacity for THOSE PARTICULAR CRUDE OIL TYPES- investors control the "marginal barrels" of the oil type used for physical delivery in futures (light sweet crude), they can set price...

Actually, combined (commercial plus government) inventories in US are at the highest level in history, over 1 BILLION barrels. The problem seems to be the broken system for determining prices, which prevents arbitrage between spot and futures and has allowed big investors (investment banks...

Because there is a risk that people finally wake up about the con game that is played at their expense. I'm 100% in favor of free speculation, but right now the price discovery mechanism for oil is broken. I've explained how I view this situation: Imagine oil is priced off the price of...

Well, isn't "refinery bottlenecks cause the price of crude oil to go up" the same as saying "the price of wheat is up because of bakery problems/bottlenecks"? (I know about the arbitrage between various crude grades, depending on their yield - I'm talking generally, where e.g. oil would jump...

As I wrote in another thread: Also, which part of Saudi oil minister statements in bold above is unclear? THEY CAN FIND NO BUYERS FOR THEIR OIL. LIGHT SWEET ALSO (dismissing the con-line that it's all heave and therefore market isn't interested). So, either you think that OPEC producers...

I know this is the prevailing opinion, but if you check the facts you'll see that China oil imports are DROPPING since 2004. They're relying increasingly on DOMESTIC production. Also, which part of Saudi oil minister statements in bold above is unclear? THEY CAN FIND NO BUYERS FOR THEIR OIL...

If you're referring to a decade long timeframe of the supply/demand picture, then possibly yes (I don;t agree but consider it possible). But for the moment (and the recent past), the oil market is DROWNING in oil. The following was published a week ago in WSJ: In an interview after a...

If the powers that be ever decide to fix the broken price discovery mechanism in the oil market, (see http://dhatz.blogspot.com/2006/06/oil-to-38657-per-barrel.html ) $50/bar should be a conservative target.

You can cut oil demand as much as you want (in fact it's already flat/down as previously stated), but as long as price is determined the way it currently is, it might have little or no impact on prices. Right now, the way markets work, it's like pricing oil off something completely...

I don't know about government blocking alternative energy resources. But I am pretty certain that the oil price is at these highs because of inability to arbitrage between physical market and futures whereas the oil price is determined relative to futures (e.g. Brent minus $2): 1/ A very...

sharkbites, thx for the article, I read it completely, but remain unconvinced, as it simply contradicts all "official" data from OPEC, Saudi Arabia, US government, oil companies, reputable people like Daniel Yiergin etc I agree that we'll run out of oil sometime over the next 20-50yr, but of...

Contrary to what the media of mass deception would have you believe, oil consumption *IS* flat or dropping: Per recent 4-May-06 testimony by Yergin before the US Congress world oil demand was up only 1% in 2005 (source). Also, China said that since 2004 it's going to rely on domestic...

Yes, I'm aware of the effect of contango on the buildup of stockpiles. My point is that oil price is driven up because funds are buying the futures, off which oil is priced (since the 1988), despite plenty of supply (or even a glut) at the physical market, due to no arbitrage between spot and...

They (ordinary people) deserve what they get only because they have faith that their government is doing the best for them and that the media is actually informing them. If all you hear from the media (which IMO are just shills for those making $$$ from this) is that oil is going up because...

It's always been clear to everyone who will take a bit of time to research issues, that this entire oil runup is a FINANCIAL phenomenon. (not just oil, but also base metals etc) Nowadays untold billions are flowing into long-only commodity funds. The reasons are pretty obvious, to escape...

Amen to that! Just increase money supply with population growth or have commodity money (e.g. gold standard).

I agree, the real damage was done before Bernanke and it'll be unfair to blame him when the shit hits the fan. Right now, I don't think there's much that can be done anymore to make things right without considerable (economic) pain. The problem is that nobody wants bad things to happen on...